Troubled UAE independent Dana Gas is looking to the future having last month completed the tortuous refinancing of its $1bn Sukuk. But the firm continues to face major problems in receiving payment from its key producing areas of Egypt and the Kurdistan Regional Government (KRG) area of northern Iraq.
When cash flow problems were at their nadir in early 2012 this led the company to slash capital expenditure – dramatically scaling back drilling in Egypt – with the predictable result of a production collapse (see graph and MEES, 6 February 2012). Drilling and production have since rebounded somewhat. For 1Q13 Dana’s Egyptian output was 33,000 barrels of oil equivalent/day (boe/d), up 3% on the previous quarter, but still well down on 2011. The firm’s overall production also rose 3% to 61,000 boe/d. (CONTINUED - 937 WORDS)