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UAE's energy firm Dana Gas has entered into a binding agreement with IPR Wastani Petroleum, a member of the IPR Energy Group for the sale of its onshore Egyptian producing oil and gas assets for up to $236 million including contingent payments.
IPR is a leading private E&P operator in Egypt, with 9 active concessions, and over three decades of expertise in enhancing the recovery of mature producing oil and gas fields.
"This asset sale is in line with Dana Gas’ strategic goals of strengthening its balance sheet and focusing on the development of its world class assets in the Kurdistan Region of Iraq (“KRI”)," Dana Gas said in a statement to Abu Dhabi Securities Exchange (ADX).
Dr Patrick Allman-Ward, CEO, Dana Gas, said: "Completion of the sale process will allow us to strengthen our balance sheet and focus our attention on the development of our world class assets in the KRI, of which our current share of reserves are over 1 billion barrels of oil equivalent, with considerably more resources for realization and development."
"The quality of our remaining assets in Egypt are excellent and we retain an interest in two exploration concessions. Our offshore exploration block in particular is highly prospective," he added.
The perimeter of the transaction includes Dana Gas’ 100 percent working interests in the El Manzala, West El Manzala, West El Qantara and North El Salhiya onshore concessions and associated development leases.
The transaction, is subject to a number of conditions precedent and to the Egyptian Ministry of Petroleum and Mineral Resources’ approval, is currently expected to complete early 2021. The proceeds will be used to reduce debt and for general corporate purposes, Dana Gas said in a statement.
(Writing by Seban Scaria; editing by Daniel Luiz)
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