Dana Gas has reported encouraging drilling results from its Egypt programme alongside the receipt of additional payments totalling AED 79 million, or roughly $21.5 million, marking the full settlement of all overdue receivables in Egypt and the continuation of full, timely payments from the Egyptian government.
The company’s latest well has identified an estimated 10 billion cubic feet of gas resources, significantly exceeding the original prognosis of 3 billion cubic feet, with potential to add a further 12 billion cubic feet of resources across the licence area. Dana Gas plans to drill four additional wells before the end of 2026 as it continues executing a $100 million investment programme focused on stabilising production and restoring growth across its Nile Delta portfolio.
The company delivered a return to production growth in the first quarter of 2026, with average output rising 4% year-on-year to 13,060 barrels of oil equivalent per day — the first increase since 2017. In 2025, Dana Gas drilled four wells and carried out workovers on three more, adding approximately 30 million standard cubic feet per day of production and 36 billion cubic feet of reserves.
“The Egyptian Government’s settlement of all outstanding receivables and the return to full, timely payments are important developments that give us greater confidence to continue investing in Egypt,” said Richard Hall, Chief Executive Officer of Dana Gas. “We are already seeing tangible operational results. Production returned to growth in the first quarter for the first time since 2017, and our latest well results have exceeded expectations.” Hall added that the improved fiscal framework under the Consolidated Concession Agreement and constructive cooperation with the Egyptian government had strengthened the company’s confidence in further investment.
Source: energy-pedia.com