Output from the Zora Gas field 35km offshore Dana’s home emirate of Sharjah has fallen to just 10mn cfd, half year-ago levels. Dana added $100mn to its debt pile to fund development of Dora (MEES, 12 September 2014); at start-up less than 18 months ago it said output would ramp up to 40mn cfd (MEES, 3 March 2016).
Output is set to dwindle further. The firm has looked into the economics of a well intervention program to revive output but “preliminary results… indicate that at current gas prices… [this] is unlikely to be economically viable.” These results “will be taken into consideration” in a “final decision that will have to be taken on the asset” later this year, the firm said in its Q2 results, released 15 August. CEO Patrick Allman-Ward confirmed on the subsequent earnings call that a major write-down is the most likely outcome. (CONTINUED - 1158 WORDS)