CAIRO: Dana Gas is committed to develop 20 new wells and work-over 17 existing wells in Egypt, in the framework of a $350 million work program, per the Gas Production Enhancement Agreement (GPEA), according to Dana Gas press release for the company’s production and profits in quarter 1 (Q1) 2015.
Dana Gas witnessed a decline in the total production of Q1 2015; it registered 37,700 Barrels Of Oil Equivalent Per Day (boepd) compared to 39,100 boepd in Q1 2014, attributing the differences to the natural decline in gas wells.
The company will keep the proceeds from incremental liquid sales to pay down the receivables owed by the Egyptian Government, Dana said.
On Jan. 4, 2015, Dana Gas received $60 million from the Egyptian government, which represents 28% of the total overdue receivables of $212 million. The payment will also be used to fund future investment requirements and address operational expenses in Egypt.
Earlier in 2014, Dana Gas and the Egyptian Government signed the landmark Gas Production Enhancement Agreement (GPEA) to increase production from current levels of around 40,000 boepd from the Company’s Development Leases in the Nile Delta over a seven-year period. The estimated incremental production would be approx. 270 billion cubic feet of natural gas, 8 to 9 million barrels of condensate and around 450,000 tons of liquefied petroleum gas (LPG.)