Dana Gas has terminated its agreement related to the sale of its Egyptian assets with IPR Wastani Petroleum Ltd, according to Dana Gas’ press release.
A number of conditions needed to close the deal could not be completed by the deadline set down in the sale and purchase agreement (SPA), which was on Wednesday 14th of April 2021. As a result, Dana Gas board has decided to maintain and operate assets in Egypt alongside the offshore Block 6.
According to Abu Dhabi stock exchange (ADX), the company is required to specify the financial impact of the decision. In this regard, the company stated that it would have “positive consequences on the company’s profitability and balance sheet and improvement in its cash flow in the coming years.”
Patrick Allman-Ward, CEO, Dana Gas, stated “Dana Gas has worked diligently to finalize this transaction. However, satisfaction of the conditions precedent in the SPA proved problematic between the parties. Once the due date for satisfaction of those conditions expired, and after due consideration, the Company resolved to exercise the right to terminate the SPA in accordance with its terms.”
Allman-Ward also added “We have an excellent track record of operating in Egypt over the past 14 years. We remain fully committed to managing these assets for the benefit of all our stakeholders, including the Egyptian Government. We look forward to maximizing the value of both our onshore producing assets and focusing our attention on testing the enormous potential of our offshore Block 6 Concession Area where we are planning to drill an exploration well Q1 2023.”