Abu Dhabi — Pearl Petroleum, a consortium majority-owned by Abu Dhabi-listed Dana Gas and its affiliate Crescent Petroleum, plans to raise funding, including a $300-400 million bond sale, for its investments in Iraqi Kurdistan, the chief executive of Dana Gas said.
The funding will comprise a mix of bank debt, a bond, Exim bank financing as well as contractor and vendor financing, Patrick Allman-Ward told reporters on a media call on Monday.
The financing is being raised principally for the drilling of exploration and drilling wells, development wells and the construction of gas processing facilities, he said.
Dana has signed a 20-year gas sales agreement with Iraqi Kurdistan which will enable it to expand production to 650 from 400 million standard cubic feet per day by 2021, he said.
Dana Gas could potentially seek an alternative listing in London as the stock is under-valued in Abu Dhabi, he said. “We are certainly planning to be ready to list this year and actual listing will depend on market conditions,” he said, adding the company is reviewing advisers for the listing.
Dana on Monday reported a rise in first-quarter net profit to $35 million from $14 million a year earlier driven by output in Iraqi Kurdistan.
Also, a saving of $10 million of sukuk profit payments was recognised during the quarter following a sukuk restructuring and buyback programme, Dana said in a statement.
Its gas production in the first quarter averaged 68,700 barrels of oil equivalent per day, up six percent from a year earlier.
Dana will continue to pursue its projects in Egypt, Allman-Ward said.
Dana’s 2019 capital expenditure for Iraqi Kurdistan is estimated at $70-90 million while for Egypt it is about $90 million, he said.