Dana Gas, one of the major natural gas companies in the Middle East, reported a 1%  increase in net profits during the H1 2025, compared to the same period of last year to reach AED 270 million ($73 million) thanks to new investment momentum in Egypt and strong operation in Kurdistan Region of Iraq (KRI).

In a company press release on the results, Dana Gas highlighted the successful drilling of the first well in Egypt under its new investment program, with a successful outcome. In July, the company announced the successful drilling and completion of Begonia-2, the first of 11 planned wells, confirming 9 billion cubic feet (bcf) of gas reserves and expected production of 5 million standard cubic feet per day (mmscf/d).

The company added that work is underway to complete the Balsam-3 well, which holds estimated reserves of 4 bcf and is expected to add 3 mmscf/d to production. These developments signal the company’s renewed upstream investment in Egypt under more favorable fiscal terms.

The company’s revenues came at  AED 627 million in H1 2025 compared to AED 696 million in H1 2024, “due to the production decline in Egypt and lower hydrocarbons prices. However, it was partially compensated by the higher production in KRI and improved pricing in Egypt,” noted the statement.

The company’s production in Egypt decreased by 29% to 12,450 barrels of oil equivalent per day (boe/d) from 17,650 (boe/d) in H1 2024, primarily due to natural depletion of the field. Yet, the program will allow for to restoration of production volumes in the long-term.

Dana Gas’ investment program in Egypt targets an 80 bcf increase in gas recovery and aims to offset natural field declines, Dana Gas said. The extra output is expected to save Egypt’s economy more than $1 billion by cutting dependence on imported LNG and fuel oil.