Dana Gas receives $50M from Egypt to support drilling program

Updated 1/5/2026 8:55:00 AM

Arab Finance: Dana Gas has received a $50 million (AED 184 million) payment from the Egyptian government, significantly reducing overdue receivables, according to a press release.

This move accelerates the company’s ongoing drilling program under the consolidation agreement that was formally signed with Egypt in December 2024.

The partnership boosted Dana Gas’s concessions in Egypt and secured enhanced fiscal terms to support new upstream investment. This is in addition to securing acreage designated for exploration drilling.

Under the joint program, the ADX-listed company has drilled four wells, including the recent North El-Basant 1 discovery, which is estimated to hold 15 billion cubic feet of recoverable gas. These wells successfully added 18 million standard cubic feet per day (mmscfd) of production and a material increase in reserves.

Currently, the UAE-based group intends to drill seven further wells under the program in 2026, with the Daffodil exploration well expected to spud in January.

Dana Gas also implemented a workover program across three wells, adding nine mmscfd of production. Further assessments are underway to identify additional workover candidates for 2026.

Richard Hall, CEO of Dana Gas, said: “This latest payment, which will help fund our investment program in Egypt, acknowledges the importance of timely payments to ensuring the successful delivery of our drilling program.”

“We have successfully brought new gas production online, and additional wells are scheduled to follow. The program not only enhances Dana Gas’s upstream position in Egypt, it also contributes directly to the national economy by supporting domestic gas supply and reducing the need for imports,” Hall added.

The CEO affirmed: “With the right support in place, we’re well positioned to deliver the next phases of the program and continue strengthening Egypt’s role as a regional gas hub.”

Moreover, Dana Gas plans to deliver its 11-well investment program in 2026, which is expected to contribute over $1 billion in economic savings by replacing imported LNG and mazut with domestic production.