(WO) — Dana Gas reported encouraging drilling results in Egypt’s Nile Delta while announcing that the Egyptian government has fully settled all overdue receivables and continues to make payments on time, supporting the company’s plans for additional upstream investment.
The company’s latest well identified an estimated 10 Bcf of gas resources, significantly exceeding the original forecast of 3 Bcf. Dana Gas said the discovery also highlights additional development and exploration opportunities across the license area, with the potential to add a further 12 Bcf of gas resources in the future.
The drilling success comes as Dana Gas continues to execute a $100-million investment program focused on stabilizing and growing production from its Egypt portfolio.
According to the company, average production during the first quarter of 2026 increased 4% year over year to 13,060 boed, marking its first production growth in Egypt since 2017.
In addition to the drilling results, Dana Gas announced it recently received AED 79 million ($21.5 million) in payments from Egypt, completing the settlement of all overdue receivables. The company said the improved payment environment and ongoing government support have strengthened confidence in further investment.
“The Egyptian Government’s settlement of all outstanding receivables and the return to full, timely payments are important developments that give us greater confidence to continue investing in Egypt,” said CEO Richard Hall.
Dana Gas drilled four wells and completed workovers on three additional wells during 2025, adding approximately 30 MMscfd of production and 36 Bcf of reserves.
Looking ahead, the company plans to drill four additional wells before the end of 2026 as it seeks to further expand production and resource potential across its Egypt acreage.
The company said the improved fiscal environment reflects broader efforts by Egyptian authorities to encourage upstream investment, increase domestic gas production and reduce reliance on imported LNG.
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