Dana Gas has announced the termination of its agreement for the sale of its Egyptian assets as several conditions necessary for the completion of the transaction were not satisfied by both parties before the long stop date of the Sale and Purchase Agreement (SPA), which was on Wednesday, April 14th 2021.

The agreement for the sale was announced on 25th October 2020.  According to the Company’s Board, it has decided to retain and operate the assets in Egypt alongside the highly prospective exploration acreage offshore Block 6.

Excerpt from the Company’s release read: “As per ADX disclosure requirements, the Company is required to disclose the financial impact of this termination. While the Company is still assessing these in detail, it is expected that there will be positive consequences on the Company’s profitability and balance sheet and improvement in its cash flow in the coming years. These beneficial consequences result from the changed circumstances in the global economy and energy markets.”

The Chief Executive Officer of Dana Gas, Dr Patrick Allman-Ward, said: “Dana Gas has worked diligently to finalise this transaction. However, satisfaction of the conditions precedent in the SPA proved problematic between the parties. Once the due date for satisfaction of those conditions expired, and after due consideration, the Company resolved to exercise the right to terminate the SPA in accordance with its terms.”

“We have an excellent track record of operating in Egypt over the past 14 years. We remain fully committed to managing these assets for the benefit of all our stakeholders, including the Egyptian Government. We look forward to maximizing the value of both our onshore producing assets and focussing our attention on testing the enormous potential of our offshore Block 6 Concession Area where we are planning to drill an exploration well Q1 2023.”

ABOUT DANA GAS

Dana Gas PJSC is a publicly-traded natural gas company, based in Sharjah, United Arab Emirates. Incorporated and listed on the Abu Dhabi Securities Exchange in 2005, Dana Gas is the largest non-government owned natural gas company in the Middle East, with operations in Egypt, Iraqi Kurdistan, and the UAE.