Dana Gas production from Egypt decreased 25% in Q1 2024 due to natural field decline, the company announced in its Q1 financial results.

The company has produced 18,150 barrels of oil equivalent per day (boe/d) during Q1 2024, divided into 88 million standard cubic feet (MMscf) of gas; 1,800 barrels per day (bbl/d) of condensate and 140 metric tons per day (mtpd) of liquified petroleum gas (LPG). This production is 25% lower than output in Q1 2023 as a result of natural field declines and absence of meaningful investments.

Dana Gas highlighted promising exploration and development opportunities within its existing Egyptian onshore holdings and nearby open acreage.

The company has negotiated a new agreement with the Egyptian Natural Gas Holding Company (EGAS) Board. This agreement, pending approval by the Egyptian parliament, offers improved economic terms and grants Dana Gas direct rights to explore a 296 square kilometer area. This paves the way for a late-life development program, which includes drilling three exploratory wells in the newly awarded zone and eight additional infill exploration and development wells within existing concessions.

“Once the new concession terms with EGAS in Egypt are finalized. The new agreement will allow for the extension of the economic life of the Company’s Egypt assets,” the company said.

The group has collected an amount of $9 million from Egypt and $67 million from KRI during this period. Receivables stand at $57m and $91m in Egypt and the KRI respectively.

Dana Gas revealed $2 million CAPEX in Egypt in Q1 2024, referring to limited CAPEX amid finalization of concession consolidation.