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Dana Gas says its cash status is solid |
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12/30/2008 1:35:03 AM |
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Dubai UAE-based Dana Gas said yesterday it has a healthy cash position to fund its projects despite the ongoing global financial crisis.
"Dana Gas ends 2008 with solid growth in production and activities and a positive outlook for the coming year, despite the global financial crisis," said Neeraj Agrawal, Dana Gas finance director.
"Having completed our major fund-raising in late 2007, we are in a healthy cash position to fund project investments, and even the latest fall in global oil prices has not impacted us too badly, given that nearly 70 per cent of our current Egypt revenues come from gas sales at fixed prices. The fundamentals of the natural gas industry in the Middle East region remain strong, since it is a core long-term sector in the region's growth," Agrawal added.
The company completed a $1 billion (Dh3.67 billion) sukuk offering in late 2007.
Dana Gas yesterday announced a new gas and condensate discovery in Egypt at its Al Basant-2 Well in the Nile Delta Concession.
The well, located 1.4 kilometres northeast of the Al Basant-1 Discovery in the West Al Manzala Concession, was expanded on December 6, reaching a total depth of 3,050 metres and encountered 37 metres of net sand pay with good porosity and permeability in the Qawasim formation.
Drilling campaign
Hany Al Sharkawi, Dana Gas country director in Egypt, said the cumulative proven and probable reserves in the Al Basant hydrocarbon accumulation significantly raise the firm's reserves in Egypt.
"Combined with Dana Gas' other discoveries this year, it shows that our 2008 drilling campaign was correctly conceived and implemented and therefore on the basis of this success we plan to continue with further drilling in this concession, where several prospects of similar nature have been identified," Al Sharkawi said.
"This acreage is particularly attractive to us as we have established production in the area and we are able to bring new discoveries quickly and at comparatively low cost. In addition, our gas is sold at a fixed price, provided the oil price stays above $22 per barrel," he said, adding that "the company has already applied for a Development Lease, which we expect to be granted soon, and we anticipate a production start-up by the end of March 2009."
Following an extensive testing programme at Al Basant-2, Dana Gas plans to transport the hydrocarbons produced from the well through a pipeline to its Al Wastani field facilities, which lie about 10 kilometres to the north of the well.
The company says it's currently the sixth highest natural gas producer in Egypt, and has already made a number of discoveries in the country, including the first commercial oil finding ever made in southern Egypt. Dana Gas also has ongoing projects and assets in both the UAE and Northern Iraq. |
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Source: Zawya.com |
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