File Photo: Dana Gas. Photo courtesy of Egypt oil & Gas.
The Sharjah-headquartered company announced on Tuesday that the newly drilled well substantially exceeded its original estimate of 3 Bcf, opening up further development prospects across the concession area with the potential to add another 12 Bcf of gas resources.
The announcement comes as Egypt seeks to accelerate domestic natural gas production and attract upstream investment to curb its reliance on imported liquefied natural gas (LNG).
The Emirati company announced in May that the Egyptian government has fully settled its outstanding dues to Dana Gas as part of its broader strategy to eliminate arrears owed to foreign oil and gas companies, a move aimed at bolstering investor confidence and encouraging upstream investment.
Dana Gas said on Tuesday that the progress reflects an improved fiscal framework under the Consolidated Concession Agreement and close cooperation with the Ministry of Petroleum and Mineral Resources, the Egyptian General Petroleum Corporation (EGPC), and the Egyptian Natural Gas Holding Company (EGAS).
The company is currently implementing a $100 million investment programme focused on its Nile Delta assets. Production from its Egyptian operations rose 4 percent year-on-year in the first quarter of 2026 to an average of 13,060 barrels of oil equivalent per day (boepd), marking its first production increase since 2017.
The growth follows a 2025 drilling campaign during which Dana Gas completed four wells and carried out workovers on three others, adding 30 million standard cubic feet per day (MMscf/d) of production and 36 Bcf of reserves.
The company plans to drill four additional wells before the end of 2026 to further develop its Egyptian asset base.
Dana Gas also announced that the Egyptian government has settled all outstanding receivables owed to the company after making additional payments totalling AED 79 million ($21.5 million), restoring full and timely payments.
"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 Richard Hall, Chief Executive Officer of Dana Gas.
Hall added that the latest drilling results underscore the quality of the company's acreage and reinforce its long-term growth outlook. He also thanked the Egyptian authorities for measures aimed at encouraging investment in the energy sector, increasing domestic gas production, and reducing dependence on imported gas.
Established in December 2005 and listed on the Abu Dhabi Securities Exchange (ADX), Dana Gas is the Middle East's largest regional private-sector natural gas company. It operates exploration and production assets in Egypt, the Kurdistan Region of Iraq (KRI), and the UAE, with proved and probable (2P) reserves exceeding one billion barrels of oil equivalent (boe) and average production of around 52,000 barrels of oil equivalent per day (boepd) in 2025.
In June, Egypt cleared all outstanding arrears owed to foreign oil and gas partners, reducing overdue payments to zero from $6.1 billion recorded on 30 June 2024. The government said the move is intended to strengthen investor confidence in Egypt's energy sector and support further upstream investment.
Foreign investment in Egypt’s oil and gas sector is cyclical, but it is now being rebuilt around three pillars: clearing arrears, reopening investment opportunities, and pushing domestic gas production higher. That makes the sector one of the most important channels through which Egypt can attract hard currency, shore up energy supply, and keep upstream activity alive.
Egypt’s oil and gas market has long relied on foreign investment because the sector is capital-intensive, technically demanding, and central to the country’s energy security and foreign currency needs. International oil companies are active across exploration, development, and production, and the Egyptian goverment has tried to keep the sector attractive by offering licensing rounds, production-sharing style arrangements, and new upstream opportunities through the Egypt Exploration and Production Gateway.
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