Dana Gas announced on Monday that it has received a cash payment of $50 million (approximately 184 million AED) from the Egyptian government.
According to the company’s statement, this payment will significantly reduce the outstanding amounts owed to it in Egypt.
The company emphasized that this cash injection supports its ongoing drilling program as part of the merger agreement concerning the concession areas entered into with the Egyptian government, officially signed in December 2024.
It added that this agreement has enabled the consolidation of Dana Gas’s concessions in Egypt and provided improved financial terms to support new investments in exploration and production activities. The agreement also includes additional areas designated for exploratory drilling.
Dana Gas explained that since the launch of the program, it has successfully drilled four wells, including the recent discovery at the North El Basant-1 well, which has recoverable gas reserves of approximately 15 billion cubic feet, contributing to an increase of 18 million standard cubic feet per day in production along with a significant rise in reserves.
The company plans to drill seven more wells as part of the program in 2026, with the next exploratory well, Davodil, set to commence drilling this January.
Additionally, it has completed a re-completion and maintenance program for three wells, which contributed 9 million standard cubic feet per day to production. Current evaluations are ongoing to identify other wells suitable for additional re-completion activities in 2026.
Dana Gas also stated its intention to execute an investment program that includes the drilling of 11 wells by the end of 2026, which is expected to generate savings exceeding $1 billion for the Egyptian economy by replacing imported liquefied natural gas and diesel with locally sourced natural gas.