Dubai: Crescent Petroleum has been granted permission to raise its stake in Dana Gas to more than 20 per cent and retain its position as the largest founding shareholder.

The Sharjah-based energy company said in a statement Tuesday that it has permission to acquire additional shares in Dana Gas as an insider.

“The purchase underscores Crescent Petroleum’s confidence in Dana Gas and in the continued growth of the company’s business. The share purchase follows the dilution of Crescent’s holding after the conversion of Dana convertible Sukuk shares,” the statement said.

Dana Gas announced in May that it has reached an agreement with a committee of Sukuk holders to restructure and refinance the $700 million (Dh2.57 billion) Sukuk after downsizing it to $530 million.

The new Sukuk will have a three-year life with a new profit rate of four per cent per annum and matures in October 2020. It is now listed on Euronext Dublin, previously known as Irish Stock Exchange. 
The company said in a statement last month that all legal proceedings have been completely brought to an end by the parties to the Sukuk litigation in all jurisdictions.

“The reduced size of the instrument, relaxed dividend covenants and a lower profit will reduce company’s annual finance cost by $35 million per annum or 63 per cent and provides a strong improvement to the company’s financial position and support for the company’s planned annual dividend policy,” it said.

Dana is now moving forward with its exploration and development plans to evaluate and develop its portfolio of assets, both in the Kurdistan Region of Iraq and Egypt.