Regions Tomorrow Gas Arabia Summit , Dubai Dr Patrick Allman-Ward - - PowerPoint PPT Presentation

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Dr Patrick Allman-Ward Chief Executive Officer Dana Gas PJSC January 2015

Clean Energy For the MENA Region’s Tomorrow Gas Arabia Summit , Dubai

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Forward Looking Statement

This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations

• f

future events. The Company, its subsidiaries and its affiliates (the “Companies”) referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements of the Companies, could thus differ materially from those projected in any such forward- looking statements. The Companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise. 2

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Presentation Outline

 Middle East – Energy dynamics and growing role of gas  Dana Gas – Regions leading gas independent  Providing solutions to local gas market challenges  Summary

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Qatar 5%

Nigeria 1% Other FSU 3% LatAm Left China,

• ther ME

13%

Algeria 2%

Iran 5%

Turkmen. 2%

Russia 18% OECD 36% Other 15%

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Gas is the growth fuel of the 21st Century. It has strong environmental credentials, is cost competitive , is accessible and available in abundance

50 100 150 200 250 300

Solar PV (Germany) Solar PV (South USA) CCS Coal Offshore wind Biomass Inciner. Nuclear (EPR) Onshore wind (UK) New Hard coal New CCGT @ LEA price range Oil in Jul 2014 Oil in Dec 2014

Full Life Cycle Cost (USD / boe)

Current full lifecycle costs for new-build power generation including externalities (USD per boe)

• c. 10%

utilisation of capacity

• c. 35%

utilisation

• f capacity

? Not yet working at scale Subject to supply price uncertainty ? No full cycle cost audit

?

• c. 25%

utilisation

• f

capacity

Fall in oil price has brought its price below renewables and more into line with gas prices

• c. 20%

utilisation

• f

capacity

Latin America 8% North America 16% Middle East + Africa 27% Former Soviet Union 26% Europe 5% Asia Pacific 18%

Huge global conventional and unconventional gas resources

250+ years of gas resources at 2012 global demand levels

• c. 825

tcm

% of 2013 gas production

Openness of gas industry

0.0 0.2 0.4 0.6 0.8 1.0 1.2 Nuclear Biomass Offshore Wind Coal CCS Gas Coal Carbon Intensity (tCO2 per MWh)

CO2 emissions of various fuels in power generation

Save 60% today at low cost…

Gas / Coal CCS

… or save extra 30% in uncertain future at very high cost

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500 1,000 1,500 2,000 2,500 3,000 3,500 1990 1995 2000 2005 2010 2015 2019

GDP, USD bn

50% 49% 50%

• 200

400 600 800 1 000 1 200 1 400 1 600 1990 2012 2020 2030 2040

Primary Energy Demand, bcme pa

Gas Other

34% 53%

Source: IEA, IMF, BP Statistical Review 2014

0% 50% 100% 150% 200% 250% 300% 350% 400% 450% 500% China Middle East India Japan US EU

Total Gas Demand Growth since 2003

• 1. Middle East comprises: Bahrain, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, UAE, Yemen

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Middle East gas demand is poised for continued growth as the region’s population and economy grows in coming decades

CAGR: 8.2%

GDP Growth of Middle East1 Primary Energy Demand of Middle East1 Regional Gas Demand Growth in Last Decade

428 2013 Gas Demand (bcm pa) 162 51 117 737 438 Gas CAGR: 4.5% Gas is 50% of regions Energy Mix in 2013

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20 40 60 80 100 120 140 160 180 Iran Saudi Arabia United Arab Emirates Egypt Qatar Kuwait Bahrain Oman Yemen Syria Iraq (Incl. KRI)

2013 Gas Demand, bcm pa

5 10 15 20 25 30 35 40 Iran Qatar Iraq (Incl. KRI) Saudi Arabia United Arab Emirates Egypt Kuwait Oman Yemen Syria

Proved Gas Reserves, tcm

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• Incl. KRI

resource estimates

Gas Resource Holders in Middle East (incl. Egypt) (Total Reserves: c. 82 Tcm) 2013 Gas Demand in Middle East (incl. Egypt) (Total Demand: c. 473 bcm pa)

Source: BP Statistical Review 2014, EIA

Middle East has abundant gas resources to fulfil both domestic and international gas demand for over a century

Access to Private Capital

Closed/inaccessible Potentially Open Open

Based on IHS estimates 60-70% of Middle Eastern gas resources are associated gas

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Dana Gas is a gas focused regional independent E&P company and is listed on the ADX

 Dana Gas is a MENASA focused gas independent headquartered in the UAE  Dana Gas is quoted in the UAE stock exchange (Abu Dhabi Securities Exchange). Bloomberg: DANA:UH  Shares

• utstanding:

ca. 6,960 million Market capitalisation: approx. $ 1.2 billion Enterprise value: $ 1.8 billion  Net Debt/(Cash)1: $ 602 million (end 2014 Q3)  Current Production: 70.5 kboed (2014 9M)  2P Reserves2 : 150 mmboe  Strong Corporate Governance structure and a unique pan-MENA Board of Directors access to business opportunities in the world’s largest hydrocarbon region

1.Total interest bearing debt less cash 2.Includes Egypt & UAE reserves only at end of 2013

Dana Gas is operating at the heart of the World’s Largest Hydrocarbon region

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Business Model across the gas value chain Dana Gas is operating at the heart of the world’s largest hydrocarbon bearing region Reserve & Resources

Mid Stream and Downstream asset

Production Profile

 EBGDCo – Liquid Extraction plant (LPG)  UGTC & SajGas - Gas Transportation and Processing  35% in Crescent Natural Gas Corporation Limited (CNGCL) – Gas marketing 8

Given strong gas demand fundamentals and resource potential, Dana Gas is uniquely positioned to grow across the region

CAGR 14%

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200 400 600 800 1,000 1,200 1,400 1,600

2P Reserves, mmboe

Gas Oil 10 20 30 40 50 60 70 80

2014 WI Production, kboepd

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Reserve Ranking of Independents in Dana Gas’ Region of Operation1 2014 Production Ranking of Independents in Dana Gas’ Region of Operation1

• 1. Dana Gas Region of Operations: Egypt, Iraq, UAE

Source: Wood Mackenzie

Dana Gas is a leading reserve holder and producer in its core areas in MENA region

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To meet its growing gas demand, the UAE needs to tap into its domestic resources and create greater connectivity to global LNG markets. As Dana Gas, we are focused on developing gas resources in the region for local needs

Source: BP Statistical Review 2014 10

UAE Gas Demand Balance Map of UAE with major oil and gas infrastructure

Dolphin Pipeline

Zora

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1.5

16.4

UAE Gas Production 56 bcmpa UAE Gas Demand 68.7 bcmpa Domestic 88% Export 12%

Imported Gas (Qatar) 24% Imported LNG 2% Domestic 74%

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UAE: Zora Project Update

 Overall project progress is in line with plans for first gas in 1H 2015 with a capacity of 40 mmscfd (6,650 boepd )  All major facilities contracts now awarded  Offshore platform fabrication progress 70%  Line Pipe manufactured and transported to Abu Dhabi and coating in progress  All onshore and offshore major procurement items ordered  Onshore plant site work started

Offshore platform under fabrication

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10 20 30 40 50 60 70 80 90 100

Primary Energy Demand (mln toe pa)

Other Renewables Coal Hydro electric Oil Natural Gas

Source: BP Statistical Review 2013, IMF, Morgan Stanley

Despite a challenging business environment; Egypt gas fundamentals are robust

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Egypt GDP (USD bln) Egypt Primary Energy Supply (mln toe pa) Gas consumption in Egypt to exceed production for first time since 1995 Onshore Nile Delta steady and critical gas supply source

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200 400 600 800 1,000

2014 WI Production, mmcfpd

100 200 300 400 500 600 700

Gas Reserves, bcf

Dana Gas is the largest independent gas producer and 4th largest

• nshore producer in Egypt

Source: Wood Mackenzie

Gas Reserve Ranking of Independents in Egypt 2014 Gas Production Ranking in Egypt (* denotes company is an operator)

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Dana Gas Egypt Credentials: 9th largest producer 6th largest operator 4th largest onshore producer

EBGDCO LPG Plant

(Dana Gas holds 26.4% of the project)

1.Edison holds 100% operating interest in Abu Qir, but the development is operated by a 50:50 JV with EGPC – Edison not designated as operator

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Gas Production Enhancement Agreement helps Egypt increase production while delivering long term value to Dana Gas

GPEA initiative allows Dana Gas to optimise core Nile Delta asset

Investment highlights:

• Drilling includes 37 new wells and an equivalent

number of work-over wells over a 7 year period in existing concessions in Nile Delta

• Investment to boost incremental production by c.

270 bcf of natural gas, 9 mmboe of condensate and 450k tonnes of LPG

• Capital

expenditure to be funded by a combination of project financing and internally generated funds from Egypt Commercial framework

• Financial proceeds from incremental condensate

sales at international market prices are to be retained by Dana Gas and the government share

• f proceeds will be applied directly to pay down
• utstanding receivables
• Under the agreed

commercial arrangement, Dana Gas’ receivables are expected to fall from the current level to nominal levels by mid-2018

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Newly awarded exploration blocks in Nile Delta enables Dana Gas to build on its core area production and utilising existing infrastructure

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• Awarded the North El Salhiya (Block 1) and El

Matariya (Block 3) onshore concessions in the Nile Delta in the 2014 EGAS bidding round

• Block 1 (Dana Gas 100% WI) is an extension of

the company’s existing, successful conventional gas business

• Block 3 (Dana Gas 50% WI) targets deeper

Oligocene opportunities. BP to operate as 50:50 JV partner

• BP will operate Block 3 as 50/50 partner and

target deeper, high-potential Oligocene play which is proven and tested in offshore Nile Delta by BP and BG

• BP and Dana Gas in discussions on possible

joint participation in some of Dana Gas’s adjacent Development Leases linked to exploration success in Block 3

Blocks 1 & 3 located adjacent to Dana Gas’ prolific Nile Delta development leases

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Dana Gas’ investment into exploration assets highlights its long term plans for investment in Egypt and its future upsides in the country

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 G&G studies prior to commencing seismic acquisition in Q4-14 / Q2-15  Environmental Impact Assessment ahead of seismic

• perations

 Seismic reprocessing of vintage 2D seismic data across the block Q4-14  The initial seismic acquisition will consist of ~2000 lkm of 2D seismic to cover the deep water portion of the block where there is currently very limited seismic coverage

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Rich gas and condensate producer with strong growth track record

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Khor Mor Field Production, Dana Gas net share (40%)

• 3. Current Condensate Gas Ratio (CGR) on Khor Mor is ca. 45 bbl/mmscf comparable to Qatar North Field CGR of 47~50

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• Pearl has invested over $1.1bn of capital in the region and

produced c.100 mmboe of oil and gas (incl. over 400 bcf of gas) from the Khor Mor Field.

• Gas produced from the Khor Mor field is supplied to local power

stations generating c. 1750 MW electricity, which enables the 5mln strong population of the KRI to receive continuous electricity and has benefitted the regional government by saving it over $11bln in fuel costs over last five years.

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Khor Mor and Chemchemal are potentially largest gas fields in the KRI and comparable to large scale gas developments in the region

Large Gas Developments in MENA (Source: Company disclosure)

* Excludes associated liquid and oil upsides

Kurdistan Gas Fields Key MENA gas fields under development

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30 60

KhorMor + Chemchemal Miran Bina Bawi Khazzan (Tight Gas) Oman Leviathan + Tamar (Isreal) Al Hosn (sour gas) UAE

Gas in Place * (in TCF)

(Israel)

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5,000 10,000 15,000 20,000 25,000 30,000 35,000 Gas Resources

Gas Volumes, bcm

2013 Production Proved Reserves

MENA gas markets have huge potential and strong fundamentals for growth. Market based pricing could accelerate the development of gas as the region’s preferred fuel for economic growth

Source: IMF, BP Statistical Review 2014, IGU

Global Wholesale Domestic Gas Prices Global Pre-Tax Energy Subsidies (2011) MENA Gas Supply vs Demand Balance

123 years supply at current production levels

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Middle East & North Africa 48% Emerging & Developing Asia 21% CEE & CIS 15% Latin America & Caribbean 7% Advanced Economies 5% Sub Saharan Africa 4% MENA spends $237bn in energy subsidies – c. 8.6% of the region’s GDP Proved Reserves: 88 tcm (Incl. associated gas) 5 10 15 20 Saudi Arabia UAE Qatar Egypt Kuwait Iran Bahrain Oman USA Norway Indonesia China UK Benelux Austria Japan

Wholesale Domestic Gas Price, $/mmbtu

0tcf 0tcf 0tcf 9tcf 116tcf 103tcf 72tcf 330tcf 34tcf 7tcf 1193tcf 63tcf 65tcf 872tcf 215tcf 291tcf

Proved Gas Reserves

MENA OECD OTHER

MENA Gross gas production 715 bcm pa Based on IHS estimates 60-70% of Middle Eastern gas resources are associated gas Global energy subsidies total c. $500bn

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Reach Us: Dana Gas PJSC

• P. O. Box 2011, Sharjah, UAE

www.danagas.com E-mail : rsingh@danagas.com Direct : +971 6 519 4401 Fax : +971 6 556 6522

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