DANA GAS COMMENCES PRODUCTION FROM THE ZORA GAS FIELD IN THE U.A.E.

OREANDA-NEWS. Dana Gas, the Middle East’s leading regional private sector natural gas company, is pleased to announce that sales gas production commenced on 28^th February 2016 from the Zora Gas Field. Initial project startup was achieved on 14^th January 2016 with early gas supplies being intermittent as the gas plant was being fully commissioned. Subsequently sales production was delayed due to urgent maintenance work on gas supply infrastructure at the customer’s receiving facilities.

The Zora Gas Field is located in the Sharjah Western Offshore Concession, approximately 35 kilometers off the coasts of Sharjah and Ajman in the U.A.E. The Concession covers a total area of over 1000 km² straddling the maritime waters of Sharjah and Ajman.  Dana Gas is the operator with a 100% interest, and will manage the field and the gas sales and purchase agreements. The gas is being transported through a subsea pipeline to a newly built onshore gas processing facility constructed by Dana Gas and located in the Hamriyah Free zone in Sharjah.

The field is expected to achieve a flow rate of 40 million cubic feet a day (6,650 barrels of oil equivalent). Natural gas from the Zora field will be sold for use in power generation in the domestic market, thus delivering a clean source of energy to the Emirate of Sharjah, as well as cost savings from displacing part of the current sources, which include diesel fuel. The project achieved an excellent safety record of over two million man-hours without lost time incidents.

Dr Patrick Allman-Ward, CEO, Dana Gas, said:

“Zora is our first development project in the U.A.E, and as such, represents a significant milestone in the Company’s 10 year history. The project represents a considerable investment by Dana Gas and the resulting gas output will support clean, domestic power generation for Sharjah for years to come. I would like to take this moment, on behalf of everyone here at the Company, to thank the Governments of Sharjah and Ajman, the Regulatory Authorities, all the contractors and the financing banks for their support in enabling this project to come to fruition.

Despite a very tough business environment, Dana Gas is entering into a new and exciting phase of its development. Our exploration and development activities in the U.A.E. and in Egypt will provide a short to medium term boost to our overall production levels and thereby help to offset the decrease in revenue and profits resulting from the current low oil price environment. We are also operating and producing in three countries and territories for the first time in our history, namely Egypt, Kurdistan and now the U.A.E. in keeping with our strategy of diversifying our asset portfolio.”

About Dana Gas

Dana Gas is the Middle East’s first and largest regional private sector natural gas company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with an average output of 63,900 boepd, in 2015.. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas aims to play an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region.