UAE-based Dana Gas said its total 2018 cash collections totalled US$324 million (AED 1.2 billion) from operations in Egypt, the Kurdistan Region of Iraq and the UAE, which will support the company's growth plans.
The company said that during the fourth quarter, Pearl Petroleum (Dana Gas owns a 35 pct interest) received US$102 million from condensate and LPG sales from the Khor Mor field in the Kurdistan Region of Iraq.
Dana Gas’ share from the receipts by Pearl Petroleum is $36 million, bringing total collections received by Pearl Petroleum for the year to date to $322 million and to $113 million for Dana Gas' share.
It said the company currently has no overdue receivables from the KRI operations.
Dr Patrick Allman-Ward, CEO, Dana Gas, said: "The overall cash collections from operations for the year is a positive achievement for Dana Gas and will support the company's growth plans as well as dividend distribution potential. In the Kurdistan Region of Iraq, our joint operations have received all payments in full and on time, which gives confidence for our planned future investments to more than double production levels there within the next few years."
Dana Gas recently announced that as a result of the ramp up of production from debottlenecking project in the KRI and the completion of the Balsam-8 well in Egypt, its group production reached 70,000 barrels of oil per day (boepd). This represents a significant increase compared to the company's nine-month 2018 average of 62,250 boepd.
The expansion of the gas processing plant in the KRI consisted of a series of plant additions and modifications to de-bottleneck throughput, raising output capacity from 305 MMscf/d of natural gas to 400 MMscf/d, with over 15,000 barrels per day of condensate. This is expected to add up to $50 million annually to the company's revenues without incurring any significant operational costs.
Pearl Petroleum is also taking on a multi-well drilling programme at Khor Mor and Chemchemal, with expansion plans to progress and grow gas production by a further 500 MMscf/d and liquids production by a further 10-12,000 boepd over the coming three years.