Dana Gas Secures $50 Million Payment as Egypt Drilling Program Accelerates

Core Viewpoint - Dana Gas has received a $50 million payment from the Egyptian government, which will support its drilling program and ease outstanding receivables [1] Group 1: Financial and Operational Developments - The payment is part of the Consolidation Agreement signed in December 2024, which aims to enhance fiscal terms and accelerate upstream investment in Egypt [2] - Dana Gas has drilled four wells since the program's inception, including the North ElBasant 1 discovery, which is estimated to hold around 15 billion cubic feet of recoverable gas, adding 18 million standard cubic feet per day to production [3] - The company has completed workovers on three existing wells, contributing an additional 9 million standard cubic feet per day, with further candidates under evaluation for 2026 [3] Group 2: Future Plans and Economic Impact - Dana Gas plans to drill seven more wells next year, with the Daffodil exploration well scheduled to spud in January, as part of an 11-well investment program expected to be completed in 2026 [4] - The CEO emphasized that the latest payment will help fund investment plans in Egypt and highlighted the importance of timely government settlements for sustaining drilling momentum [5] - The 11-well program is projected to generate over $1 billion in economic savings by displacing imported LNG and mazut with locally produced gas, thereby enhancing energy security and reducing foreign currency outflows [6]