Dana Gas receives AED 161 million from Iraqi Kurdistan

Dana Gas received 43.75 million Australian dollars (161 million dirhams) in cash in the first half of Pearl Petroleum Limited for LPG and condensate sales in the Kurdistan region of Iraq, including a new payment in cash of 7 million dollars. ($ 25.7 million) received in June 2018.

Pearl Petroleum is a consortium of five oil and gas companies focused on the exploration and production of oil and gas assets in the Kurdistan region. Iraq. Gas »35% interest in Pearl Petroleum as a contributor and joint operator

Dana Gas received the money received from the sale of the products and decided to retain them at Pearl Petroleum to cover its costs of $ 35. operating, without including Dana Gas's share of the cash proceeds received by Pearl Petroleum from the Kurdistan Regional Government. (US $ 140 million of Dana Gas's interest) owned by Pearl Petroleum to expand the scope of investment through the development of Kormor and Chamchamal fields and increase production, in accordance with the agreement of settlement signed in August 2017 with the Kurdistan regional government of Iraq.

Since the signing of the settlement agreement between Pearl Petroleum and the Kurdistan Regional Government of Iraq, all payments for LPG and condensate sales have been received from the KRG in accordance to the calendar and without delay. (19659002) Production

The production of Dana Gas in the Kurdistan region of Iraq amounted to 26,100 barrels of oil equivalent per day in the first half of this year, slightly increase over the level of production in the same period last year, which stood at 25,900 barrels of oil equivalent day. Other plans are underway to increase Pearl Petroleum production by 170% by 2021, by installing two new gas processing lines of 250 million cubic feet per day each. This will increase the total daily production capacity of the Khormur field by 580 million cubic feet of gas and 20,000 barrels of condensate, bringing the total daily production to 880 million cubic feet of gas, 33,000 barrels of condensate and 950 tons of condensate. [19659002] Efficiency

The first phase of this expansion is to increase the operational efficiency of existing facilities, which will increase the production rate by 80 million cubic feet per day, an increase of by about 25% By the end of the third quarter of 2018. In addition, financing has been secured The project has a value of 25.9 million US dollars and a 10-year gas sales agreement has been signed with the Kurdistan Regional Government for the supply and sale of additional gas.

An evaluation and development drilling program will be launched in Khor Mor. In the coming months, as well as the maintenance and rehabilitation of existing wells.

The expansion plan will be financed by Pearl Petroleum directly or through third parties or by the cash flow provided by our operations and without the need to provide liquidity. Before Dana Gas.