Dana Gas has reported positive results from its drilling programme in Egypt and received an additional AED 79 million (US$21.5 million) in payments. The payment clears all outstanding receivables owed to the company in Egypt, while the Egyptian Government continues to make payments on time.
The progress in Egypt reflects the improved fiscal terms under the Consolidated Concession Agreement, close collaboration with the Egyptian Government, the settlement of all outstanding receivables, and Dana Gas’ continued investment in its assets. With overdue payments now cleared and regular payments continuing, the company has greater confidence to expand its investments in Egypt. The government’s efforts to attract upstream investment, increase domestic gas production, and reduce LNG imports have also supported this outlook.
Dana Gas continues to implement its US$100 million investment programme to stabilise production and restore growth across its Nile Delta assets. In the first quarter of 2026, average production rose 4% year-on-year to 13,060 barrels of oil equivalent per day (boepd), marking the company’s first production increase since 2017.
During 2025, the company drilled four wells and completed workovers on three additional wells. These activities added about 30 million standard cubic feet of gas per day (MMscf/d) to production and increased reserves by 36 billion cubic feet (Bcf).
Recent drilling results have exceeded expectations. Dana Gas’ latest well identified an estimated 10 Bcf of gas reserves, compared with the initial forecast of 3 Bcf. The discovery creates new development and exploration opportunities across the licence area and could add around 12 Bcf of future gas resources once developed. The company plans to drill four more wells before the end of 2026.
Chief Executive Officer Richard Hall said the Egyptian Government’s settlement of all outstanding receivables and its return to timely payments have strengthened the company’s confidence to continue investing in the country. He said the operational improvements seen in recent months reflect the impact of the company’s ongoing investment programme.
Hall said production returned to growth in the first quarter for the first time since 2017, while the latest drilling results surpassed expectations. He added that the newest well identified significantly more gas resources than initially estimated, highlighting the quality of the company’s acreage and the remaining opportunities across its portfolio. According to Hall, the discovery expands future development and exploration prospects and reinforces confidence in the long-term outlook for Dana Gas’ Egypt business.
Hall also thanked Egypt’s Ministry of Petroleum and Mineral Resources, the Egyptian General Petroleum Corporation (EGPC), and the Egyptian Natural Gas Holding Company (EGAS) for their support in encouraging investment, boosting domestic gas production, and reducing the country’s dependence on gas imports.
Those efforts have already led to several new discoveries. They include an oil and gas discovery by Agiba Petroleum Company, the joint venture between EGPC and Eni, in the Western Desert; a gas discovery by Eni in the Nile Delta following its earlier gas and condensate discovery in the Temsah concession in the Eastern Mediterranean; and a gas discovery by Apache, working with EGPC, in the Western Desert.
source: oilreviewafrica.com
African Energy Council