IPR Energy has entered into a binding agreement to purchase Dana Gas' onshore producing assets for $236 million. The transaction includes Dana Gas’ 100% working interests in the El Manzala, West El Manzala, West El Qantara, and North El Salhiya onshore concessions and associated development leases. In the first half of 2020, these concessions produced 30,950 barrels of oil equivalent per day, and contributed $38 million of EBITDA. Transfer of ownership, responsibilities and staff, will take place upon execution and formal approval of the deeds of assignment for the various concessions. Dana Gas will retain its interests in its onshore and offshore exploration concessions, respectively El Matariya (Block 3) and North El Arish (Block 6).
Under the terms of the sale, the consideration a base cash consideration of $153 million 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. The transaction requires approval from the Egyptian Ministry of Petroleum and Mineral Resources, and is expected to close in early 2021. Tudor Pickering Holt served as an advisor to Dana Gas.