IPR Energy Group (IPR) member IPR Wastani Petroleum Ltd. has agreed to acquire onshore Egyptian producing oil and gas assets from Dana Gas PJSC, Sharjah, UAE, for a consideration of up to $236 million including contingent payments.
Assets include Dana Gas’ 100% working interests in the El Manzala, West El Manzala, West El Qantara and North El Salhiya onshore concessions, operated through the WASCO JV, an operating joint venture with EGPC, as well as associated development leases. In first-half 2020, the concessions produced 30,950 boe/d.
Dana Gas Egypt will retain its interests in its onshore and offshore exploration concessions, respectively El Matariya (Block 3) and North El Arish (Block 6).
Terms of the deal include a base cash consideration of $153 million, including the net working capital associated with the assets and before any closing adjustments, and contingent payments of up to $83 million subject to average Brent prices and production performance between 2020-2023 as well as the realization of potential third party business opportunities.
With the acquisition of the DG assets, IPR will have 14 concessions including the current portfolio of 9 petroleum concessions in the Western Desert, Eastern Desert, Gulf of Suez, and Nile Delta. In March, the company acquired a 40% working interest in the Alamein concession increasing its operated position to 100%.
Subject to customary regulatory approvals, the Dana Gas deal is expected to close in early 2021.
