Mon. Sep 16th, 2019

A payment of $48M received by Dana Gas via its operations in June

An announcement was made by Dana Gas that it has received payments of $48M from its operation in Egypt in June, as per reported by the Emirates News Agency on Sunday.

These collections consist of $38M in payments from the government (out of which $30 million were of the shares of Dana Gas) and $10M from the sake of the 2nd El-Wastani condensate shipment in 2019.

This payment is part of the Egyptian government’s continuing efforts to bring reduction in its overdue receivables position to nil by the end of 2019.

The Chief Executive Officer of Dana Gas, Patrick Allman Ward, with regards to the announcement stated that receiving $38M from the government of Egypt in June shows sound progress for the government in achieving its goals of paying all the overdue receivables by end of the year.

This payment by the government will help us in executing our work-over programmer & contribute towards the expenses of our deep-water exploration well in Block 6, drilling Merak-1.

There is well progress of the drilling operations and we are anticipating to have resulted in the 3rd quarter this year.

From the previous year, the total receipts from Egypt reached $208M, decreasing the sum of the overall receivables to $140M by the end of the year, which is the lowest level since the January of 2011.

The firm has received a total amount of $78M in payments during the first quarter of 2019, hence further reducing the receivables to $125 million.

The drilling operations of the firm began on the 20th of May at its Merak-1 well.

The location is in 755m of water in the North El-Arish concession.

The block 6 lies in the Eastern Mediterranean where other top-class giants of the world natural gas discoveries have been made lately.