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

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The Middle East’s Leading Private Sector Natural Gas Company First Quarter 2011 Results Presentation – 12th May 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

Financial Controller

Donald Dorn-Lopez

Technical Director

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Presentation Outline – First Quarter 2011

CEO Overview Technical Director Operational update Production Financial Controller Financial Results

• Average Realized Prices
• Net Profit
• Capital Expenditure
• Trade Receivables Analysis
• Cash Flow
• Key Financial Metrics

Q & A session

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CEO Overview – 1Q 2011 Highlights

 1Q 2011 Profit After Tax: $25MM, compared to $9MM in 1Q 2010  1Q 2011 Production:

• Increase of 34% compared to 1Q 2010
• Target overall production increase of 25% in 2011 compared to 2010

 Egypt exploration – South East Abu El Naga – at least 60Bcf estimated reserves  Kurdistan Region of Iraq – delivering 250MMscfpd of gas, plus condensate and LPG  Receivables issue in Iraq and Egypt focus of management attention  Reviewing capex plans for 2011 in light of receivables

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Technical Director Operational Update

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Egypt: Year to Date 2011 Results

2011 RESULTS & PLANS 2011 discoveries:

South Abu El Naga – 2 (El Wastani formation)

2011 new fields on stream Ward Delta West Ward Delta Current prod rate 48kboepd

East Nile Plant El Wastani Plant S El Manzala Plant

Orchid

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Kurdistan Region of Iraq: Year to Date 2011 Results

2011 RESULTS & PLANS Production via Early Production Facility LPG Train 1 LPG Train 2 Available capacity circa 400 MMscfpd 1Q11 gas production 224 MMscfpd (gross)plus 15,500 bpd condensate (gross) plus LPG production at about 300 tonnes/day Currently meeting needs of power stations with capacity to deliver further volumes

Pearl Petroleum Company Ltd ownership:

• Dana Gas

40%

• Crescent Petroleum

40%

• OMV

10%

• MOL

10%

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50,000 39,200 10,800 66,800 47,300 19,500 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 T

• tal

Egypt Kurdistan (40% WI)

Production (Boepd)

1Q10 1Q11

Includes Gas production: 14,900 boepd 1Q11 (8,200 boepd 1Q10)

Rounded to nearest hundred

Nile Delta 100% Komombo (50% WI)

Production – First Quarter 2011 Vs First Quarter 2010

34% 21% 80%

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61,800 45,700 16,100 66,800 47,300 19,500 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 T

• tal

Egypt Kurdistan (40% WI)

Production (Boepd)

4Q10 4Q11

Includes Gas production: 14,900 boepd 1Q11 (12,300 boepd 4Q10)

Rounded to nearest hundred

Production – First Quarter 2011 Vs Fourth Quarter 2010

Nile Delta 100% Komombo (50% WI)

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Financial Controller Financial Results

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75 61 71 102 80 101 20 40 60 80 100 120 Condensate (USD/boe) LPG (USD/boe) Crude Oil (USD/bbl)

Q1 -2010 Q1 - 2011

Average Prices - First Quarter 2011 Vs First Quarter 2010

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

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85 72 82 102 80 101 20 40 60 80 100 120 Condensate (USD/boe) LPG (USD/boe) Crude Oil (USD/bbl)

Q4 -2010 Q1- 2011

Average Prices - First Quarter 2011 Vs Fourth Quarter 2010

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

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Profit After Tax Bridge – First Quarter 2011 Vs First Quarter 2010

9 21 35 (14) (5) (3) (7) (9) (2) 25 10 20 30 40 50 60 70

Q1 2010 Profit Increase in Revenue - Price Effect Increase in Revenue - Quantity Effect Increase in Royalty & Tax Increase in DDA & COS Higher G&A Higher Finance cost Higher Exploration expenditure Lower Investment / Other Income Q1 2011 Profit

US$ Million

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US$ million 27 24 1 21 4 4 10 20 30 Dana Gas Egypt Kurdistan Others

Q1 - 2010 Q1 - 2011

CAPEX - First Quarter 2011 Vs First Quarter 2010

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218 310 50 100 150 200 250 300 350 Dana Gas Group US$ million

Q4 2010 Q1 2011

Trade Receivables - First Quarter 2011 Vs Fourth Quarter 2010

45% 53% 2%

Dana Gas Egypt Kurdistan Others USD 115 Million USD 98 Million USD 5 Million

Q1 2011 Q4 2010

48% 50% 2%

Dana Gas Egypt Kurdistan Others USD 156 Million USD 148 Million USD 6 Million

Collections in April $ million Egypt 20 Kurdistan 4 Total 24

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Cash Flow – First Quarter 2011

(90) 4 1 (47) 84 (29) (17)

• 60
• 40
• 20

20 40 60 80 100 Operating cash flow before working capital Capital expenditure Finance cost Working capital movement Proceeds from borrowings Others Net cash flow

US$ Million

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 SALES REVENUES ( ): 50% increase is due to higher realized hydrocarbon prices and higher production in Kurdistan compared to 1Q 2010.  GROSS PROFIT ( ): 108% increase reflects the higher sales revenue, partially offset by higher royalty charges and increased DD&A as a result of increased production.  Profit After Tax ( ): See “Bridge” Chart. An improvement of $16m compared to 1Q 2010. Capital Expenditure ( ): Lower by 52% compared to same period last year mainly due to reduced activity in Kurdistan following completion of the LPG plant.

Key Financial Metrics – First Quarter 2011