Abu Dhabi – Mubasher: Dana Gas has terminated its agreement to sell its Egyptian assets, as a number of conditions precedent to the transaction could not be fulfilled to satisfy both parties prior to the due date of the Sale and Purchase Agreement (SPA).
The due date of the SPA was scheduled for 14 April 2021, according to a press release on Sunday.
Hence, the company's board has decided to retain and operate the Egyptian assets alongside the highly prospective exploration acreage offshore Block 6.
The termination is expected to have a positive impact on the company's profitability, balance sheet, and cash flow in the upcoming years, driven by the changed circumstances in the global economy and energy markets.
The CEO of Dana Gas, Patrick Allman-Ward, said: "We look forward to maximizing the value of both our onshore producing assets and focussing our attention on testing the enormous potential of our offshore Block 6 Concession Area where we are planning to drill an exploration well Q1 2023."
It is noteworthy to mention that on 25 October 2020, Dana Gas signed an agreement with IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, to sell its onshore oil and gas assets in Egypt for $236 million, including contingent payments.
