Clean Energy For the MENA Region’s Tomorrow Dana Gas Equity Investor Presentation March 2014 www.danagas.com 1
Forward Looking Statement This presentation contains forward-looking Forward-looking statements are based on certain statements which may be identified by their use of assumptions and expectations of future events. The words like “plans,” “expects,” “will,” “anticipates,” Company, its subsidiaries and its affiliates (the “believes,” “intends,” “projects,” “estimates” or other “Companies”) referred to in this presentation cannot words of similar meaning. All statements that guarantee that these assumptions and expectations address expectations or projections about the are accurate or will be realised. The actual results, future, including, but not limited to, statements performance or achievements of the Companies, about the strategy for growth, product could thus differ materially from those projected in development, market position, expenditures, and any such forward-looking statements. The financial results, are forward looking statements. 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. www.danagas.com 2
Presentation Outline The MENA Region and its relevance Dana Gas: A Brief Overview Recent Performance Country Operations Valuations Summary www.danagas.com 3
Focused on a region that holds the largest share of global conventional oil & gas reserves and production MENA oil production outlook Proved Gas Reserve (2012) Global Gas Production (2012) >35% of global oil production 6614 Tcf 118 Tcf p.a MENA Gas production outlook ~20% of global gas Gas Production Tcf p.a. 35 production 30 Proved Oil Reserve (2012) Global Oil Production (2012) North Africa 25 20 Middle East 15 1669 Bln 10 86.2 mln bopd bbl 5 0 Countries included: Iran, Iraq, Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman Syria, Jordan, Egypt, Libya, Tunisia & Algeria www.danagas.com 4 Source: BP Statistical Review 2012 & IEA
Natural Gas fast becoming the Fuel of Choice for the growing energy demand in MENA and else where Growing economies fueling demand for Global Population Trends energy (Source: UN) 70% less CO2 than coal in power generation (old plants) Small physical footprint versus coal, nuclear or renewables Able to operate near full capacity reliably all the time Increasing pan-geographic pipeline Global Primary Energy Demand (Source: IEA) connectivity and growing LNG trade addressing cross-border product demand Globally, in 2012 c.25 bn boe of discoveries were made, of which, c.70% were natural gas (100 TCF) 250+ years of conventional / unconventional (shale gas) reserve life www.danagas.com 5
Fast growing domestic demand in MENA MENA Primary Energy Demand MENA Country Primary Energy Mixes 3 (Source: EIA) (Source: BP Statistical Review 2013 & IEA Data) CAGR of gas consumption 7% Percentages represent gas consumption as 35% share of total primary energy consumption 27% 24% 41% 46% 50% CAGR CAGR gas gas demand demand • Growing primary energy needs boost gas demand • There is a switch from oil to gas in local economies as they Dana Gas Current operations preserve oil for exports www.danagas.com 3. For countries where data available for 2012 6
Dana Gas: A Brief Overview www.danagas.com 7
Independent E&P company listed on the ADX Dana Gas is operating at the heart of the World’s Dana Gas is a MENASA focused gas Largest Hydrocarbon region independent headquartered in the UAE Dana Gas is quoted in the UAE stock exchange (Abu Dhabi Securities Exchange). Bloomberg: DANA:UH Shares outstanding: 6,788 million Market capitalisation: approx. $1.6 billion Enterprise value: $2.2 billion Net Debt/(Cash) 1: $611 million (2013YE) Current Production: 64.7 kboed (2013YE) 2P Reserves 2 : 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 www.danagas.com 1.Total interest bearing debt less cash 8 2.Includes Egypt & UAE reserves only at end of 2013
Board of Directors consisting of luminaries from the MENA region provide unparalleled access to key markets Dr. Adel Al Sabeeh Sheikh Sultan Bin Ahmed Dr. Tawfeeq Al Moayed Ahmed Al Arbeed Chairman Al Qasimi Deputy Chairman Hamid Jafar KUWAIT KUWAIT UAE UAE BAHRAIN Former Chairman of Board Former Oil Minister of Deputy Chairman of Sharjah Chairman of Crescent of Directors of Kuwait Oil Chairman of T.A. Almoayed Kuwait, Chairman & MD of Petroleum Council & Group of Companies Co. (KOC), GM of Seven & Sons W.L.L. and Chairman National Industries Company Chairman of Sharjah Pipeline of Almoayed Wilhelmsen Sisters Company (NIC) Co Rashid Al Jarwan Majid Jafar Executive Director Ziad Galadari Managing Director of the Abdulaziz Al Jomaih Saeed Arrata UAE UAE SAUDI ARABIA Board - UAE EGYPT Former GM of ADGAS, Board Founder & Chairman of MD of International CEO of Crescent Petroleum, Chairman of Sea Dragon Director of Emirates General Galadari Advocates & Legal Investments of Aljomaih and Vice-Chairman of the Energy Company Petroleum Corporation , Consultants Crescent Group of Group Oman Insurance Company Companies and DIFC Investments www.danagas.com 9
Board of Directors consisting of luminaries from the MENA region providing unparalleled access to key markets Ahmed Al Midfaa Abdullah Al Majdouie Varouj Nerguizian Nasser Al Nowais Salah Al Qahtani UAE SAUDI ARABIA UAE UAE SAUDI ARABIA Chairman of Sharjah Group President and Vice Chamber of Commerce & ED & GM of Bank of Sharjah, Chairman of Rotana Hotels, Vice Chairman of Abdel Hadi Chairman of the Almajdouie Industry, Expo Centre Chairman and GM of MD of Abu Dhabi Trade Abdullah Al-Qahtani & Sons Group Sharjah and Ruwad Emirates Lebanon Bank SAL Centre Group of Companies Establishment in Sharjah Khalid Al Rajhi Rashad Al Zubair SAUDI ARABIA OMAN CEO of Al-Rajhi Partners & Chairman of The Zubair Al- Rajhi Holdings Corporation www.danagas.com 10
Portfolio with substantial upside www.danagas.com 11
Proven track record based on top class exploration, accelerated development and inorganic opportunities Value Delivery Model Drill bits success – Nile delta exploration success – Reserve growth Exploration √ Nile Delta Exploration M&A 2007-2013 (48 exploratory wells with – Egypt entry: acquisition of Centurion Energy success rate of 49%) – KRI partnership structure in Pearl Petroleum for long term gas monetisation – Komombo farm out Project Delivery Project Delivery – Timely completion and on budget on key M&A √ Nile Delta Production projects – Production build up in Egypt (2007- ) √ Centurion Energy (2006) – √ Kor Mor 180k.m. onshore pipeline Fast track KRI development - $1.1 billion – Nile Delta development (best-in-class + Gas production (2008 - ) √ Pearl Petroleum (2009) – discovery-to-gas of 12 months; Allium Farm out to MOL & OMV - $370 production commenced in 3 months) √ Kor Mor LPG plant (2010 - ) million – Managed investments in sync with receivables √ Komombo farm-out (2009) – √ UAE subsea pipeline + $45 million gas sweetening plant (2006) Major financial transactions √ Egypt LPG plant (2012 - ) – IPO in 2005 attracting $78 billion – $ 1 billion Sukuk issue in 2007 – $ 850 million Sukuk restructuring in 2013 www.danagas.com 12
International and Experienced Management Team Patrick Allman-Ward Mark Fenton Robinder Singh CEO Duncan Maclean GM - Egypt IR Director Commercial and Bus. Dev. Over 30 years in the Oil & Gas Director Over 28 years of experience in business. Held senior roles at Over 27 years of international operating oil and gas companies, Over 20 years of experience in Shell as VP Exploration Asia- experience in Investor Relations, 17 years of which working with Oil & Gas. He has a commercial Pacific, CEO and Board Director marketing and corporate Shell International. He has and legal background, was of the South Rub Al Khali communications, product experience in both offshore and formerly the Global Head of Oil & Company (JV between Shell, management and business onshore oil field developments, Gas at a Top 10 global Law Total & Saudi Aramco). Width of development with Reliance particularly in the Middle East. He Firm. He has been a commercial experience spanning the entire Industries, HSBC and Bank of has held a range of technical, and legal adviser to multi- upstream value chain from America. Experienced in multiple management and executive national companies in the exploration to project billion dollar financial transactions; positions in oil companies. He is structuring and commercial management to delivering developing investor support for Member of the Society of arrangements for many of the sustainable returns across large scale capital raising Petroleum Engineers (SPE) iconic oil, gas and LNG projects multiple geographies in the Far programmes and a range of globally East, Middle East, Europe and mergers and acquisitions Africa www.danagas.com 13
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