Dana Gas Egypt Operations Unaffected Following Egypt Crisis

Dana Gas PJSC, the Middle East’s first and largest regional private sector natural gas company, has confirmed that its operations were not affected during the recent turmoil in Egypt, with production and output levels sustained during the turbulence.

Dana Gas’ operations are located in the Nile Delta and Southern Egypt far from the urban centers which typically saw the most disruption and this, together with the strong relationships with the local communities and Egyptian National Oil Companies, ensured Dana Gas could continue its operations uninterrupted.

Some 95 percent of Dana Gas’ Egypt employees are from the local population and work at all levels of the company. The gas produced by Dana Gas continues to be produced and sold domestically.

Commenting on the occasion, Dana Gas Chief Executive Officer, Mr. Ahmad Al Arbeed said: “Dana Gas would like to reiterate that its operations in Egypt have continued regularly during and post-crisis. This steady performance gives us renewed confidence to continue to expand our operations, seeking to meet rising demand. As an Arab company operating in the region, we enjoy a strong reputation for reliability, and we will continue to work to maintain and earn that reputation.”

Dr. Hany Elsharkawi, President Dana Gas Egypt, added: “During the crisis we worked very closely on the ground with our employees to ensure their safety, and kept in regular contact with the National Oil Companies. This allowed us to sustain output levels, as we continue along the path of growth projected for the year. 2011 promises to be yet another busy year for us in Egypt where we will continue to raise our production levels, in addition to continuing our aggressive exploration-drilling program in the Nile Delta and Southern Egypt.”

The company has concessions in the Nile Delta, in addition to the Komombo Concession in Southern Egypt, where in 2010, it produced a combined total of 42,300 barrels of oil equivalent a day (“boepd”). A new gas processing plant is currently under design to process 120 million standard cubic feet per day (“mmscfpd”) in the Nile Delta where the company continues its aggressive exploration for 2011. The current production level in Egypt is over 45,000 boepd.

Dana Gas is currently the 6th highest gas producer in Egypt, a country whose gas reserves has doubled in the past 5 years to over 70 trillion cubic feet, and now produces more gas than oil and is already among the world’s top ten exporters of LNG. In 2007 Dana Gas made Southern Egypt’s historic first ever commercial oil discovery from its first exploration well drilled in the Komombo Concession. The Company is firmly committed to pursuing further gas investments, in partnership with the national Egyptian companies and other energy companies from the region and internationally.

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Source: Dana Gas, February 20, 2011;