Egypt paid Dana Gas USD 111 mn in arrears owed in its Financial Results For 9M & Q3 2018, the company said in its earnings release on Wednesday.
The story comes as Egypt has been stepping up payments to international oil companies (IOCs), with arrears to oil producers have fallen to their lowest levels yet, coming in at USD 1.2 bn at the end of FY2017-18.
The company noted that its production output in Egypt fell to 34,500 boepd in 9M2018, from 39,600 boepd in 9M2017.
The Company's 9M 2018 revenue increased 6% to $351 million (AED1,287 mm) from $330 million (AED1,210 mm) over the same period last year. Correspondingly, Q3 2018 revenue increased 6% to $115 million (AED422 mm) from $108 million (AED396 mm). The increase in revenue, driven by higher realised hydrocarbon prices, helped offset production decreases in Egypt and the UAE.
Group production during 9M 2018 averaged 62,250 boepd versus 67,600 boepd in 9M 2017. The decrease was due to lower output from Egypt and the UAE. In Egypt, production during 9M 2018 averaged 34,500 boepd versus 39,600 boepd in 9M 2017. This decrease is attributed to natural well declines and reduced investment in drilling activity. Subsequent to period end, the Balsam 8 well was completed and tied in ahead of schedule and under budget adding over 5,000 boepd to the Company's output. Preparations are on track to drill the Company's first deepwater offshore exploration well in Egypt's Block 6, with the drilling date set for the beginning of 2019. In the KRI, 9M 2018 average production was steady year-on-year at 25,800 boepd.
The North El Arish concession is Dana Gas’s first offshore block and is located in a relatively under-explored part of the eastern Nile Delta. Dana Gas has identified potential in multiple plays from Mesozoic clastics and carbonates in the shallow water to Oligo-Miocene and Pliocene turbidite plays in the deepwater. 2D and 3D seismic acquisition will be followed by the drilling of 1 exploration well in the first exploration period. It is expected that the first well will be drilled Q4 2017/Q1 2018.
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The North El Arish concession is Dana Gas’s first offshore block and is located in a relatively under-explored part of the eastern Nile Delta. Dana Gas has identified potential in multiple plays from Mesozoic clastics and carbonates in the shallow water to Oligo-Miocene and Pliocene turbidite plays in the deepwater. 2D and 3D seismic acquisition will be followed by the drilling of 1 exploration well in the first exploration period. It is expected that the first well will be drilled Q4 2017/Q1 2018.
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