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

The Middle East’s Leading Private Sector Natural Gas Company 2010 Full Year Preliminary Results Presentation – 31 January 2011 1

Disclaimer Forward-looking statements are based on certain This presentation contains forward-looking assumptions and expectations of future events. The statements which may be identified by their use of Company, its subsidiaries and its affiliates (the words like “plans,” “expects,” “will,” “anticipates,” “Companies”) referred to in this presentation cannot “believes,” “intends,” “projects,” “estimates” or guarantee that these assumptions and expectations other words of similar meaning. All statements that are accurate or will be realised. The actual results, address expectations or projections about the performance or achievements of the Companies, future, including, but not limited to, statements could thus differ materially from those projected in about the strategy for growth, product any such forward-looking statements. The development, market position, expenditures, and Companies assume no responsibility to publicly financial results, are forward looking statements. amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise. 2

Today’s Speakers Ahmed Al Arbeed Donald Dorn-Lopez Azfar Aboobakar Chief Executive Officer Technical Director Group Financial Controller 3

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 4

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 5

Egypt: Year to Date 2010 Results El Wastani 2010 RESULTS & PLANS Plant 2010 discoveries: El Panseiya S Faraskur Ward Delta South Abu El Naga West Ward Delta East Salma Delta North Nile Orchid NW Sama Plant 2010 new fields on stream Sama Orchid Faraskur S Faraskur Sharabas S El Manzala Current prod rate 48kboepd Plant 6

Egypt: Reserves Proved Probable Possible 2007 45.8 66.7 86.4 2008 55.6 94.3 157.7 2009 131.9 46.8 222.0 2010 151.8 252.9 88.7 Proved Proved + possible Proved + probable + possible +90% +15 % +14% 7

Egypt: 2011 Potential Exploration Prospects Arak-1 Marvel -1 Sanabel-1 Foadya-1 Faraskur Deep-1 Ayad-1 Pluto -1 Said-1 Tulip Deep-1 Marzouk Deep-1 Bahy -1 KSH Messinian Iris-1 Violet-1 SSL Magnolia-1 Acacia-1 Azalea-1 8 Borgonia-1 W.Sama-1

Kurdish Region of Iraq: Year to Date 2010 Results Pearl Petroleum Company Ltd ownership:  Dana Gas 40% 2010 RESULTS & PLANS  Crescent Petroleum 40%  OMV 10%  MOL 10% 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 9

Production – 2010 Versus 2009 Rounded to nearest hundred Production (Boepd) 60,000 31% 55,500 50,000 22% 40,000 42,300 42,200 30,000 34,700 20,000 76% 10,000 13,200 7,500 0 Total Egypt Nile Delta(100% WI) Kurdistan (40% WI) Egypt Komombo (50% WI) Includes Gas production: 2009 2010 10,200 boepd 2010 (5,800 boepd 2009) 10

Average Prices - 2009 Versus 2010 90 3.0 78 75 80 2.7 2.7 70 61 60 55 60 2.0 50 44 40 30 1.0 20 10 0 0.0 Gas (USD/Mscf) Condensate LPG Crude Oil (USD/boe) (USD/boe) (USD/bbl) 2009 2010 11

Average Prices - Third Quarter Versus Fourth Quarter 2010 3.0 85 90 82 2.7 2.7 3.0 75 2.7 2.7 80 72 71 70 2.0 60 54 2.0 50 40 1.0 30 1.0 20 10 0.0 0 0.0 Gas (USD/Mscf) Gas (USD/Mscf) Condensate LPG Crude Oil (USD/boe) (USD/boe) (USD/bbl) Q3 -2010 Q4 2010 12

Net Profit 2009 Vs 2010 50 US$ Million 45 43 40 35 30 24 25 20 16 78% 15 9 9 9 10 5 0 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 2010 13

CAPEX – 2009 vs 2010 US$ million 300 252 250 202 200 138 150 121 98 100 59 50 22 16 0 T otal CAPEX Dana Gas Egypt Kurdistan Others 2009 2010 14

Trade Receivables –Q3 & Q4 2010 US$ million 250 218 200 177 150 100 50 0 Q3 2010 Q4 2010 Q3 2010 Q4 2010 Q3 2010 Q4 2010 2% 3% USD 4 million USD 4 million USD 5 million USD 5 million 43% 45% USD 116 USD 98 USD 98 million million USD 96 million USD 115 million USD 98 million USD 76 million million 53% 54% 15 Dana Gas Egypt Kurdistan Others Dana Gas Egypt Kurdistan Others

Key Financial Metrics – Year 2010  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. 16