Dubai: Dana Gas said on Sunday its board has decided to carry out limited drilling activities in Egypt.
Dana Gas, which pumps most of its gas at fields in Egypt is seeking to recover payments for overdue bills. The company was owed $275 million (Dh1 billion) by Egypt at the end of the quarter this year.
“In light of the recent collections received from the Egyptian government the board considered and approved that additional limited drilling activities should be carried out,” Dana Gas said in a bourse statement.
In the first quarter 2017, Dana Gas reported gross revenues of $118 million and net profit of $11 million as compared to revenue and net profit of $82 million and $6 million in the first quarter 2016. The uplift was due to increased production, principally in Egypt and higher realised prices.
The board also considered an update on the company’s sukuk maturing in October 2017. “The board took note of the continuing high balance of receivables owed to the company and agreed to take precautionary measures needed to be maintained in order to conserve cash on the balance sheet,” the company said in a statement. Dana Gas closed 4.88 per cent lower at Dh0.39 in a weak Abu Dhabi market on Sunday.