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Wednesday, 31 July 2019

Dana Gas confirms it hired financial advisors to look at Egypt exit

Dana Gas confirms hiring financial advisors for the potential sale of Egypt assets: Dana Gas confirmed reports earlier this week that it has hired financial advisors to study the possibility of selling down its Egypt asset portfolio in a bourse filing (pdf) on Tuesday. “The company is undertaking a strategic review of its Egyptian oil and gas assets and has hired financial advisors to look at a possible sale at full value, having substantially developed the said assets,” the UAE gas company said, without naming the advisors. The company reiterated that the reason for considering the exit is to focus on its more promising operations in Iraqi Kurdistan, and that it will remain committed to its Egypt operations in the meantime. It also said the sale is at its “early stages.”

Background: Unnamed sources told Reuters earlier this week that the company has hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale of its Egypt assets, which are worth more than USD 500 mn. Head of Investor Relations Mohammed Mubaideen said on Monday the company is planning to invest in drilling in the El Matareya concession in the Nile Delta. The company announced on Sunday that it is abandoning its Merak-1 well in the North Arish concession after failing to find commercial hydrocarbons.

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