Dana Gas PJSC · ADX:DANA
Dana Gas PJSC — Dana Gas — FY2015 Earnings Presentation
30 slides from Dana Gas PJSC's earnings presentation, Feb 15, 2016
Slide 1: Clean Energy For the MENA Region's Tomorrow
Clean Energy For the MENA Region’s Tomorrow Dana Gas Analyst Presentation 2015 Preliminary Results 15 February 2016 www.danagas.com 1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking Forward-looking statements are based on certain statements which may be identified by their use of assumptions and expectations of future events. The words like “plans,” “expects,” “will,” “anticipates,” Company, its subsidiaries a
Slide 3: Presentation Outline
Presentation Outline Performance Highlights Financing Update Country Performance Egypt Kurdistan Region of Iraq Zora Gas Project Update Summary www.danagas.com 3
Slide 4: Performance Highlights
Performance Highlights Dr Patrick Allman-Ward Chief Executive Officer www.danagas.com 4
Slide 5: 2015 Performance Highlights - 1
2015 Performance Highlights - 1 2015 was a tough year for the oil and gas sector as a whole: – Oil prices were down by half: realized prices $50 for condensate and $37 for LPG ($97 and $64, respectively in 2014) – Headcount has been reduced ending the year 40% down in terms of personnel. Gross R
Slide 6: 2015 Performance Highlights - 2
2015 Performance Highlights - 2 We have significantly increased our oil & gas reserves with overall 2P reserves around 690 MMboe – Increase in 1P certified reserves in Egypt by 41% and 2P reserves to 130 MMboe representing a reserves replacement ratio of 237% – Egypt’s Balsam-2 and Balsam-3 wells
Slide 7: 2015 Financial Performance
2015 Financial Performance Azfar Aboobakar Head - Financial Control & Reporting www.danagas.com 7
Slide 8: 2015 Y-o-Y Financial Performance
2015 Y-o-Y Financial Performance Percentage (In $ million) 2015 2014 Change Gross Revenue 417 683 (39) Net Profit 144 125 15 Basic EPS (AED fils) 7.7 6.6 17 Gross revenue declined by 39%, with lower hydrocarbon prices (lower by approx. 50%) and lower production in Egypt which declined by 15% Net
Slide 9: Financial Highlights: Q4 2015 vs Q4 2014
Financial Highlights: Q4 2015 vs Q4 2014 Percentage (In $ million) Q4 – 2015 Q4 – 2014 Change Gross Revenue 93 142 (35) Net Profit / (Loss) 134 (4) x 34.5 Basic EPS / (LPS) (AED fils) 7.2 (0.2) X 37.0 Lower realized hydrocarbon prices during Q4 2015 resulted in decline in gross revenue which decli
Slide 10: Production on a Y-o-Y basis
Production on a Y-o-Y basis Rounded to nearest hundred Production decline in Egypt followed a steady and predictable downward curve associated with field decline. This was partially reversed when Balsam field production and well completions were brought on stream in Q4 2015 Production in KRI inc
Slide 11: Average Realized Prices
Average Realized Prices 4Q 2014 Vs 4Q 2015 2015 2014 2014 Vs 2015 80 73 120 70 100 97 60 50 50 80 41 64 40 36 60 50 30 37 40 20 20 10 0 0 Condensate (USD/boe) LPG (USD/boe) Condensate (USD/boe) LPG (USD/boe) * Liquids benchmarked to Brent www.danagas.com 11
Slide 12: Trade Receivables
Trade Receivables (all figures in US$ ‘mm) Collection: Collection: US$ 125 mm US$ 43 mm In Egypt, the Company received cash of 30% $ 109 million and EGAS/EGPC offset the 800 746 727 signature bonus for Block-1 and Block-3 700 of $ 13 million and payables to government owned contractors of $ 3 600
Slide 13: Capital Expenditure
Capital Expenditure - (in $ million) 250 234 CAPEX - 2015 CAPEX - 2014 200 150 150 122 100 84 60 62 50 0 Total Dana Gas Egypt Zora Field Project Capital expenditure incurred in Egypt relates mainly to drilling of 1 exploratory and 6 development / recompletion wells together with Balsam field devel
Slide 14: Country Performance – Egypt and KRI
Country Performance – Egypt and KRI Iman Hill Technical Director & GM UAE and Egypt www.danagas.com 14
Slide 15: Egypt: A year of reserves growth
Egypt: A year of reserves growth A significant increase in 2015 GIIP, EUR, Recovery Volumes and Reserves despite oil price collapse Comparison 1P GCA 2014 and GCA 2015 – GIIP growth of 256 Bscf or 16%. – EUR growth of 214 Bscf or 20%. – EFR growth of 152 Bscf or 36%. – Gas Reserves growth of 97
Slide 16: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations El Wastani Development Leases: • Onshore acreage consisting of 14 Development Leases in the prolific Nile Delta region Production: • 4Q 2015 avg 32.2 kboe/d versus 37.6 kboe/d for 4Q 2014. Decline in production followed a steady and predictable Balsam 3 downward curve as
Slide 17: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations El Wastani The tie-ins for Balsam-1 and 2 were completed and the wells were started up on 2nd and 24th December respectively. In addition the decision was taken to the opportunity to lay 70% of the flow line for Balsam-3 simultaneously with the Balsam-2 flow line along B
Slide 18: Egypt: Balsam Horst Update: Balsam-1 & Balsam-2
Egypt: Balsam Horst Update: Balsam1 & Balsam-2 B-2 B-1 Balsam-2 Pilot hole QP#2 • Longest gas column encountered in Dana Gas Egypt portfolio. • Pulse test between Balsam-1 and Balsam-2 indicated single compartment. • Significant reserve add with higher than expected condensate to gas ratio. • Proven
Slide 19: Egypt: Balsam 3 Discovery
Egypt: Balsam 3 Discovery Balsam QPII Amplitude Map (Final PSTM 2012) • Balsam-3 discovery well has proved up the play in the western part of the development lease • This is a separate hydrocarbon filled structure from Balsam Horst increasing the resource base in this development lease with 2P estim
Slide 20: Egypt: Block 1 - North El Salheya Exploration
Egypt: Block 1 - North El Salheya Exploration Block-1 (100% WI) • Targets prolific Abu Madi play • Other plays include: Kafr El Sheikh and Oligocene Activities • Reprocessing of ~800 sq km of 3D seismic ongoing by Western Geco. • Tender prepared for the reprocessing of 2D seismic data. • Plan to dri
Slide 21: Egypt: Block 3 - El Matarya Exploration
Egypt: Block 3 - El Matarya Exploration Block-3 (Dana Gas 50% WI) • BP is operating Block-3 as 50/50 partner. The primary target is the deeper HPHT, and high-potential Oligocene play which has been proven in the offshore Nile Delta with very success rates and with high materiality (multi- Tcf). • Ex
Slide 22: Egypt: Block 6 – North El Arish Offshore Update
Egypt: Block 6 – North El Arish Offshore Update Block-6 (100% WI) • 1782 sq km of full fold 3D seismic acquired in October 2015 by PGS Ramform Titan boat. • 3D seismic processing completed in January 2016. • Initial processing results indicates numerous play types with significant potential based on
Slide 23: Operations in Kurdistan Region of Iraq
Operations in Kurdistan Region of Iraq DG share of production averaged 28,800 boepd during 4Q 2015. Gross production details are as follows: o 313 MMscfd of natural gas o 13,703 bbl/d of condensates o 830 MT/d LPG The Mol sieve bed for the first train at Kor Mor plant was replaced in October 201
Slide 24: Zora Gas Project Update
Zora Gas Project Update Iman Hill Technical Director & GM UAE and Egypt www.danagas.com 24
Slide 25: Zora Offshore Platform – Ready for gas production
Zora Offshore Platform – Ready for gas production Platform installation, hook up and commissioning completed. Wire line operation for un-plugging the well completed successfully. Repair works completed on the offshore pipeline, where concrete coating was damaged by Third party vessel anchors.
Slide 26: Zora Gas Processing Plant – Construction completion and handover
Zora Gas Processing Plant – Construction completion and handover All systems powered up, commissioning activities and startup ongoing. Commissioning of truck loading facility for condensate export completed. www.danagas.com 26
Slide 27: Zora Operations startup progress
Zora Operations startup progress First gas delivered to site 10/01/16. Pipeline and well cleaned up with well flowing approx. 45 mmscfd. Gas production started on 14/01/16. Gas processing shutdown again 15/01/16, due to foaming problems. Contaminated chemical inventories changed out and pipe
Slide 28: Summary
Summary Dr Patrick Allman-Ward Chief Executive Officer www.danagas.com 28
Slide 29: Summary
Summary 2015 has been a tough year with a difficult business environment, and the future is continuing to look challenging with oil having already hit a low of $27/bbl this year. However, it has also been a year of significant progress: – Rejuvenated the management team with the appointment of I
Slide 30: Reach us: Dana Gas
Reach us: Dana Gas P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : Robinder.singh@danagas.com Direct : +971 6 519 4401 Fax : +971 6 556 6522 www.danagas.com