Dana Gas revenues grow 35%

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), reflecting cash flows from operations for the first quarter of 2008 increased by 45% to Dhs142m compared to Dhs98m in the same period last year. Net profit for the quarter was Dhs25m, after finance charges of Dhs73m and non-cash depreciation charges of Dhs82m; representing an increase of 19% over the same period last year.

"In 2008 Dana Gas expects to achieve rapid growth after the solid foundations established by the Company in 2007. The UAE and Kurdistan Gas Projects are both expected to start up by the middle of this year and in Egypt we are also implementing an active $170m drilling campaign of 19 new wells which we anticipate will significantly increase our reserves and production," said Mr Hamid Jafar, Executive Chairman of Dana Gas, who added:

"In addition, the first quarter of this year has already seen Dana Gas significantly expand its existing position in the UAE to the exploration and production of natural gas, as we recently entered into a 25 year concession agreement for exploration and development of gas in an area of over 1,000 sq km offshore Sharjah, including development of the discovered Zora Gas Field, marking the Company's first entry into the exploration and production of gas in the GCC, and also its first offshore operations. We look forward to continued growth and achievements in 2008 and beyond, with the skills of our staff and the support of our esteemed shareholders."

Established in late 2005, Dana Gas has already achieved important assets and projects in the upstream, midstream and downstream sectors of the growing natural gas industries of the UAE, Egypt and Iraq, and is also developing a network of industrial 'Gas Cities' across the Middle East Region. In addition the Company is developing new projects and evaluating further acquisition opportunities, specifically in the Gulf Region and in North Africa.