Dana Gas Reports Robust Production Growth in the Kurdistan Region Amid Dividend Increase

Dana Gas Reports Robust Production Growth in the Kurdistan Region Amid Dividend Increase

Shafaq News/ Dana Gas PJSC, the Middle East's leading private sector natural gas company, has reported a 9.5% growth in the production output for the Kurdistan Region of Iraq (KRI) during its Annual General Assembly.

In tandem, shareholders endorsed the Board of Directors' proposal to distribute a supplementary cash dividend of 4.5 fils per share for the second half of the financial year, amounting to a cumulative dividend payment of AED 630 million or 9 fils per share for 2022, marking a 12.5% increase compared to the previous year.

The company's 2023Q1 production data highlighted an average group production of 62,900 boepd.

In the KRI, production output experienced a significant upswing of 9.5% year-on-year for the first quarter and 7.6% on a sequential quarterly basis.

This remarkable growth is ascribed to a 50 MMscf/d expansion in production capacity at the Khor Mor Gas Plant during 2022Q3, following the triumphant completion of a plant-debottlenecking endeavor.

Consequently, as of January 2023, the total production capacity reached an impressive 500 MMscf/d.

Dana Gas Chairman, Hamid Jafar, conveyed the company's optimism regarding its growth trajectory, stating, "Our shareholders approved the proposal of the Board of Directors to pay out a dividend for the second half of 2022, reflecting our strong operating and financial performance throughout the year."

He further accentuated the company's advancements in both the KRI and Egypt, underlining the potential to maximize asset value through proposed concession consolidation.

Pertaining to the KM 250 gas expansion project in the KRI, Dana Gas has established a new target date of April 2024 for the initiation of gas production. The company's affiliate, Pearl Petroleum, is presently contemplating an array of financing alternatives for the KM-250 expansion project at the Khor Mor field, including the possibility of a bond issuance.

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