Dana Gas gets Egypt dues cleared after new gas find beats forecast

24/06/2026 05:32 AST

Dana Gas said Egypt has settled all overdue receivables and returned to full, timely payments, giving the Sharjah-based natural gas company fresh confidence to continue investing in the country after a new well delivered better-than-expected results.

The company said it had received additional payments totalling Dh79 million, or $21.5 million, from Egypt, marking the full settlement of outstanding receivables and supporting its ongoing $100 million investment programme in the Nile Delta.

The announcement gives Dana Gas two important gains in Egypt. The first is financial, with a long-standing receivables issue now cleared. The second is operational, with the latest drilling results identifying an estimated 10 billion cubic feet of gas resources, well above the original forecast of 3 billion cubic feet.

The company said the latest result could also support a further 12 billion cubic feet of future gas resources across the licence area once developed.

Payments improve investment case
Dana Gas said the settlement of all overdue receivables, along with continued full and timely payments by the Egyptian Government, has strengthened its confidence in further investment in Egypt.

The progress follows an improved fiscal framework under the Consolidated Concession Agreement and what the company described as constructive cooperation with the Egyptian Government.

The settlement also comes as Egypt works to encourage upstream investment, increase domestic gas production and reduce reliance on imported LNG.

"The Egyptian Government's settlement of all outstanding receivables and the return to full, timely payments are important developments that give us greater confidence to continue investing in Egypt," said Richard Hall, Chief Executive Officer of Dana Gas. "Combined with the progress we have made operationally over recent months, this demonstrates the benefits of the investment programme that we continue to execute."

Output returns to growth
Dana Gas has been carrying out a $100 million investment programme aimed at stabilising production and restoring growth across its Nile Delta assets.

The company said average production rose 4% year-on-year to 13,060 barrels of oil equivalent per day in the first quarter of 2026, marking the first increase in output since 2017.

In 2025, Dana Gas drilled four wells and carried out workovers across three additional wells, adding about 30 million standard cubic feet per day of production and 36 billion cubic feet of reserves.

Hall said: "We are already seeing tangible operational results. Production returned to growth in the first quarter for the first time since 2017, and our latest well results have exceeded expectations."

Four more wells planned
Dana Gas said the most recent well has opened up additional development and exploration opportunities across its licence area.

The company plans to drill four further wells before the end of 2026, extending a programme that has already helped reverse years of declining production.

"The most recent well has identified significantly more gas resources than originally anticipated, highlighting both the quality of our acreage and the opportunities that remain across our portfolio," Hall said. "The result opens up additional development and exploration potential and further strengthens our confidence in the long-term outlook for the Egypt business."

The company said the improved payment environment and stronger drilling results come at an important time for Egypt's gas market, where domestic output growth is a policy priority.

Gulfnews