Dana Gas building momentum in Egypt

Emirati energy company Dana Gas said there was positive momentum building behind its exploration and production operations in Egypt.

Dana said two concession agreements signed for operations in the Nile Delta provides the company, the sixth largest gas producer in Egypt, a strong foundation for growth.

"We see this positive momentum continuing and are excited about our exploration and development plans in Egypt," Chief Executive Officer Patrick Allman-Ward said in a Sunday statement.

Dana in early January said it received $60 million from the Egyptian government, which represents about a quarter of its outstanding debt.

Political and economic instability in Egypt has left the government in debt to energy companies eager to tap the country's natural gas potential. The government recently agreed to cover at least $2 billion owed to a group of operators collectively.

"We are poised to deliver strong growth in Egypt in the short term as a result of the signing of the gas production enhancement agreement duly supported by the payment made by the Egyptian government last month," Dana's CEO said.

Dana in 2014 increased production of oil and natural gas by 8 percent from 2013. The company said it produced more than 100 million barrels of oil equivalent since operations in the country began in 2007.