Dana Gas achieves revenue of Dhs719m in Q3

Net profit for the quarter was Dhs22m after adjusting for non-cash depreciation and depletion of Dhs56m and finance costs of Dhs30m.

The company generated total revenue of Dhs719m in 264 days of production for the nine-month period ended 30 September 2007, with a gross profit of Dhs184m at a gross margin of 46% of net revenue. Dana Gas earned a net profit of Dhs72m after adjusting for non-cash depreciation and depletion of Dhs170m and finance costs of Dhs100m including a one-time transaction fee of Dhs20m.

With cash and bank balances of Dhs216m as of 30 September 2007, Dana Gas substantially increased this figure through completion on 31 October 2007 of $1.0bn (Dhs3.67bn) Convertible Sukuk issue, which was its maiden launch into the international capital markets.

In spite of the currently challenging credit environment, the Sukuk was favorably received in the international investment community and established many firsts for the Middle East region. The Sukuk will assist the Company in strategic expansions and to pursue identified opportunities with the aim of enhancing shareholder value and providing a material positive impact to its shareholders.

'The Company has achieved a number of major milestones in 2007,' said Mr Hamid Dhiya Jafar, Executive Chairman of Dana Gas. 'From the start of the year with the $1.1bn acquisition of Centurion and important assets in Egypt, followed by the signing of important agreements for the major project in the Kurdistan Region of Iraq, and of course most recently with the success of the $1bn Convertible Sukuk in international markets, Dana Gas has shown that, within less than two years since inception, it has emerged as an important player in the Region's growing gas business and in the international energy industry.

With major projects in the UAE and Northern Iraq coming on-stream early next year, and with the continued support of our founders and shareholders, we look forward to an exciting year ahead for the Company in 2008 and beyond, inshallah.'

The Group's long-term assets have more than doubled from Dhs4.0bn in 2006 to Dhs8.2bn. Total assets of the Group have also increased by 30% to Dhs8.9bn during the period, with shareholder equity rising to Dhs6.88bn.

During this past quarter, Dana Gas made Southern Egypt's historic first ever commercial oil discovery from its first exploration well drilled in the Komombo Concession. The event was commemorated by a site visit by the Egyptian Minister of Petroleum, H.E. Eng. Sameh Fahmy, who named the field 'Al Baraka' (meaning 'the blessing' in Arabic). Oil reserve estimates of the various zones of this discovery are currently being evaluated.

Earlier in the year, Dana Gas also entered into important agreements with the Kurdistan Regional Government in Northern Iraq to develop, process and transport natural gas and liquids from major gas fields to supply urgently needed new power plants currently under construction.

This highly significant project is currently under fast-track implementation in partnership with Crescent Petroleum, with first gas and petroleum liquid deliveries expected by early 2008 and a total planned investment of approximately $650m by the end of 2008. The Company is also leading the development of the 'Kurdistan Gas City' Project to maximize economic value and job creation to the region and Iraq by encouraging gas-based industrial investment and development on a world-scale basis.