Dana Gas reported significant progress in its drilling program in Egypt, after confirming new gas resources, increased production, and the full settlement of overdue accounts receivable by the Egyptian government.
The company received additional payments of AED 79 million, equivalent to $21.5 million, closing the outstanding balances in the country. Furthermore, the company ensured that current payments remain full and timely, a shift that improves the financial visibility of its operations.
New wells raise gas reserves and production
According to the company, recent results exceeded initial forecasts. The most recent well identified nearly 10 billion cubic feet of gas, compared to an initial estimate of 3 Bcf.
Likewise, this discovery opens new development opportunities in the license area and could provide around 12 Bcf of future resources once developed.
Production grows again after several years
Dana Gas is executing a $100 million investment program in its Nile Delta assets. The goal is to stabilize production and reactivate growth in its Egyptian portfolio.
In the first quarter of 2026, average production increased 4% year-on-year to 13,060 barrels of oil equivalent per day. This is the first annual growth recorded since 2017.
During 2025, the company drilled four wells and performed workovers on another three. These operations added nearly 30 million standard cubic feet per day of production and 36 Bcf of reserves.
Egypt seeks to boost domestic gas
The operational progress occurs under the Consolidated Concession Agreement, which improved the fiscal framework for the company. For Dana Gas, cooperation with the Ministry of Petroleum and Mineral Resources, EGPC, and EGAS has been key to maintaining investment.
Additionally, the Egyptian government seeks to attract more capital to the exploration and production sector, increase domestic gas production, and reduce dependence on LNG imports.
Dana Gas prepares more drilling
The company plans to drill four additional wells before the end of 2026. With this, it expects to expand the potential of its assets in Egypt and sustain the recovery of production.
Richard Hall, CEO of Dana Gas, noted that the settlement of outstanding accounts and the return to timely payments provide greater confidence to continue investing in the country.
Source: Dana Gas
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