Dana Gas achieves revenues of over Dhs1bn in 2007

The gross profit of the group for the year was Dhs307m after adjusting for non cash depreciation and depletion of Dhs241m. EBITDA (Earnings before Interest, Depreciation and Depletion and Income Tax), reflecting cash flows from operations for the year, was Dhs478m. Net profit for the year was Dhs111m after finance charge of Dhs153m and income tax expense of Dhs170m.

The Company recorded a substantial growth in fourth quarter profitability with gross profit of Dhs123m and net profit of Dhs39m which were up 71% and 77% respectively from previous quarter.

Dana Gas oil & gas production operations in Egypt achieved a year-end exit production rate of 32.1 thousand barrels of oil equivalent per day, exceeding expectations as a result of the addition of production from the new discoveries in the Nile Delta, and revenues were further boosted by rising oil prices.

Total assets of Dana Gas also grew by 59% to Dhs10.86bn during the year from Dhs6.84bn the previous year, reflecting the asset acquisition of Centurion Energy, and a robust liquidity position as at year-end following successful completion of the $1.0bn (Dhs3.67bn) Convertible Sukuk issue last October, which was the Company's maiden launch into the international capital markets.

"The year 2007 was a very important foundation year for Dana Gas, with major investments and important milestones achieved, highlighted by the acquisition of Centurion Energy, which launched us into gas exploration and production and a strong and growing position in Egypt, followed by the agreements in Northern Iraq for a major gas project to supply local power generation, and most recently the success of the $1 billion sukuk offering, which showed international confidence in the Company's unique position in the growing Middle East gas sector," said Mr Hamid Dhiya Jafar, Executive Chairman of Dana Gas.

"We look forward to seeing the benefits of these achievements from 2008 onwards, with the expected operational start-up in the coming months of two of our major projects - the UAE Gas Project, and the Kurdistan Project in Northern Iraq - combined with further drilling and expansion of our position in Egypt, and also new projects in other countries in the region. Dana Gas has come a long way in only its first two years, and is already a major player in the region's energy sector, but this is just the beginning of the journey, and with the skills of our staff and the support of our shareholders, we look forward to continued growth and achievements in 2008 and beyond," he added.

January 2007 saw the successful acquisition of Toronto and London-listed Centurion Energy by Dana Gas for $1.1bn, launching Dana Gas into the exploration and production sector with important assets and hydrocarbon potential in Egypt and also Tunisia, and Sao Tome in West Africa. The Company then grew upon this position in April 2007 by signing important agreements in the Kurdistan Region of Iraq, to develop, process and transport natural gas and liquids from the two existing giant gas fields to supply urgently needed gas for the new power plants currently under construction. The project is nearly 70% complete and with gas production targeted by the middle of the year, is being implemented in partnership with Crescent Petroleum with a combined planned investment of $660m by the end of 2008.

During 2007, Dana Gas also announced a number of new gas discoveries in its concessions in Egypt including in particular Southern Egypt's historic first ever commercial oil discovery from its first exploration well drilled in the Komombo Concession, re-named "Al-Baraka" (the blessing) by the Egyptian Oil Minister, and already brought onto first production.

Dana Gas has also continued to build its senior management team with the appointment of the Executive Director for Upstream Operations, Director of Business Development, and Financial Controller, as well as several other senior executive appointments during the year. The Group now employs over 400 people and has offices in the UAE, Egypt, Saudi Arabia, Bahrain, Canada, United Kingdom and the Kurdistan Region of Iraq.