Sharjah-based gas company Dana Gas with operations in UAE, Iraq and Egypt, collected $324 million in overall operations in Kurdistan Region of Iraq (KRI) and Sharjah in 2018. Earlier in December 2018, $44 million in total receipts from Egypt was announced by the company.
Pearl Petroleum, a consortium of five oil and gas companies, serving Iraqi Kurdistan collected $102 million from LPG and condensate sales from the Khor Mor field in Iraqi Kurdistan. As Dana Gas holds 35% share in Pearl Petroleum, Its overall receipts from the company is expected to add $36 million in earnings to the DG in Q4 2018. The annual receipts of DG from Pearl petroleum has soared as high as $113 million in 2018.
The company seems to have achieved its dividend distribution potential and the cash collection signals the company’s sound financial stature. The company plans to double the production levels in a few years; the on time cash collections will ensure growth in future investment. Its Debottlenecking project in Kurdistan Region of Iraq and completion of Belsam-8 well in Egypt have reported enhanced production levels of 70,000 barrels of oil per day from 9 month average of 62,250 barrels of oil per day.
The company plans to add $50 million in earnings by a series of debottlenecking projects raising natural gas capacity from 305 to 400 MMscf/d and condensate of 15000 barrels per day. Pearl Petroleum wants to add production capacity of 500 MMscf/d and liquid production of 10-12000 boepd in next three years by its multi-well drilling project in Chemchemal and Khor Mor. The expansions projects are funded as part of third party investments and will not require cash injunctions from Dana Gas, which is another positive for the future of net earnings from these projects.
The company marked a 21% year-on-year growth with collection of $199 million in 2019 as compared to $164 million in 2017 as total receipts from Egypt. The company with $55 million payment by the Egyptian Government, is working on its deep water exploration well in Block 5 North El Arish concession area in early 2019.