Arab FinanceDana Gas announced that it has received a cash payment of approximately $20 million (about 73.4 million dirhams) from the Egyptian government. Receiving this payment brings the total cash payments received from its operations in Egypt to $24.5 million (about 88 million dirhams) during the fourth quarter of this year.
It indicated that after receiving this cash payment, which will be reinvested in developing its operations in Egypt, it will be able to move forward with implementing its investment program inside the country, and explained that this program comes within the framework of the agreement to merge the concession areas that was negotiated with the Egyptian government, which It is expected to be officially concluded soon.
The company also noted that it is waiting to receive regular payments in the future from the Egyptian government to ensure the implementation of all stages of the program, and said that under this agreement, its current concession areas will be merged into one concession and with improved conditions, and these conditions will contribute to improving the economic feasibility of future exploration and development activities. .
She added that these investments include a work program that includes drilling six exploratory wells and five development wells, which will lead to an increase in the quantities of extracted gas by about 80 billion cubic feet, which will achieve a significant increase in the value of its assets in Egypt. She stated that this program will contribute to extending the lifespan. Operational capacity of its assets in Egypt, in addition to achieving savings exceeding one billion dollars for the Egyptian economy by reducing dependence on imports of liquefied natural gas and heavy oil (mazut) in generating electricity.
Richard Hall, CEO of Dana Gas, said that the latest payment received from the Egyptian government contributes to reducing the company’s dues and enhancing its cash liquidity, noting that the improvement in the company’s liquidity levels will allow it to consider the possibility of resuming the distribution of sustainable dividends to its shareholders.
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