The Middle Easts Leading Private Sector Natural Gas Company 2010 - - PowerPoint PPT Presentation

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The Middle East’s Leading Private Sector Natural Gas Company 2010 Full Year Preliminary Results Presentation – 31 January 2011

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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

• ther 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 of 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 realised. 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.

Disclaimer

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Today’s Speakers

Ahmed Al Arbeed

Chief Executive Officer

Azfar Aboobakar

Group Financial Controller

Donald Dorn-Lopez

Technical Director

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Presentation Outline – Preliminary Full Year 2010 Results

CEO Overview Technical Director Egypt 2010 Results Egypt Reserves 2011 Exploration plans Production Group Financial Controller Financial Results

• Average Realised prices
• Net Profit
• Capital Expenditure
• Trade Receivables
• Key financial metrics

Q & A session

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CEO Overview – 2010 Highlights

 2010 Profit After Tax: $43MM, compared to $24MM in 2009  2010 Production:

• Increase of 31% compared to 2009
• Exceeded our target of 20% growth in production in 2010 compared to 2009
• Increase reflects continuing progress in both Egypt and Kurdistan

 2010 Drilling Results – 64% success with 7 discoveries out of 11 wells drilled  LPG Plant construction completed in Kurdistan Region of Iraq  UAE Gas Project – status unchanged

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Egypt: Year to Date 2010 Results

2010 RESULTS & PLANS 2010 discoveries:

El Panseiya S Faraskur Ward Delta South Abu El Naga West Ward Delta Salma Delta North NW Sama

2010 new fields on stream Sama Orchid Faraskur S Faraskur Sharabas Current prod rate 48kboepd

East Nile Plant El Wastani Plant S El Manzala Plant

Orchid

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Egypt: Reserves

2010 2009 2008 2007 Proved Probable Possible

45.8 55.6 66.7 94.3 86.4 157.7

Proved + probable + possible +14% Proved +90% Proved + possible +15 %

88.7 151.8 252.9 46.8 131.9 222.0

Egypt: 2011 Potential Exploration Prospects

Ayad-1 Azalea-1 Borgonia-1 Magnolia-1 Iris-1 Marvel -1 Foadya-1 Acacia-1 Violet-1 Said-1 Tulip Deep-1 Sanabel-1 Arak-1 Pluto -1 Bahy -1 KSH Messinian SSL Faraskur Deep-1 Marzouk Deep-1 W.Sama-1

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Kurdish Region of Iraq: Year to Date 2010 Results

2010 RESULTS & PLANS Production via Early Production Facility LPG Train 1 Gas production up to 230MMscfpd plus 10000bpd condensate (gross) plus LPG production – commenced 25 Jan 2011 Currently meeting needs of power stations Development plans Build up LPG production Increase production in line with demand

Pearl Petroleum Company Ltd ownership:

• Dana Gas

40%

• Crescent Petroleum

40%

• OMV

10%

• MOL

10%

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Production (Boepd)

7,500 34,700 42,200 13,200 42,300 55,500 10,000 20,000 30,000 40,000 50,000 60,000

Total Egypt Nile Delta(100% WI) Kurdistan (40% WI)

2009 2010

Includes Gas production: 10,200 boepd 2010 (5,800 boepd 2009)

Rounded to nearest hundred

Egypt Komombo (50% WI)

Production – 2010 Versus 2009

31% 22% 76%

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61 44 55 78 60 75 10 20 30 40 50 60 70 80 90 Condensate (USD/boe) LPG (USD/boe) Crude Oil (USD/bbl)

2009 2010

Average Prices - 2009 Versus 2010

2.7 2.7 0.0 1.0 2.0 3.0 Gas (USD/Mscf)

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Average Prices - Third Quarter Versus Fourth Quarter 2010

2.7 2.7 0.0 1.0 2.0 3.0 Gas (USD/Mscf)

75 54 71 85 72 82 10 20 30 40 50 60 70 80 90 Condensate (USD/boe) LPG (USD/boe) Crude Oil (USD/bbl)

Q3 -2010 Q4 2010

2.7 2.7 0.0 1.0 2.0 3.0 Gas (USD/Mscf)

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Net Profit 2009 Vs 2010

24 9 9 9 16 43 5 10 15 20 25 30 35 40 45 50 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 2010

US$ Million

78%

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CAPEX – 2009 vs 2010

252 138 98 16 202 121 59 22 50 100 150 200 250 300 T

• tal CAPEX

Dana Gas Egypt Kurdistan Others US$ million

2009 2010

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177 218 50 100 150 200 250 Q3 2010 Q4 2010 US$ million

Q3 2010 Q4 2010

Trade Receivables –Q3 & Q4 2010

Q4 2010 Q3 2010

USD 116 million USD 98 million USD 4 million USD 98 million USD 4 million

43% 54% 3%

Dana Gas Egypt Kurdistan Others

USD 96 million USD 76 million USD 5 million

45% 53% 2%

Dana Gas Egypt Kurdistan Others

USD 115 million USD 98 million USD 5 million

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 SALES REVENUE ( ): 40% increase from $ 349 million in 2009 to $ 487 million in 2010 due to higher production in Egypt and Kurdistan (31%), plus higher realized hydrocarbon prices compared to 2009.  Profit After Tax ( ): An increase of $19 million (80%) compared to 2009 mainly due to higher revenues and increase in realised prices during the year. Fourth quarter profits were higher at $16 million compared to $ 9 million in Q3, 2010 and a loss of $ 53 million in Q4, 2009. Capital Expenditure ( ): Lower by 20% compared to 2009 mainly due to reduced activity in Kurdistan, as LPG plant construction nears completion. However, this was partially mitigated by increased activities in Other projects (Sharjah Western Offshore and EBGDCO). Trade Receivables ( ): $41 million in Q4, 2010 higher compared to Q3, 2010, mainly due to increased revenues in Q4, 2010 as a result of increased production and higher realised prices.

Key Financial Metrics – Year 2010