Dana Gas has agreed to sell its onshore Egyptian producing oil and gas assets to IPR Wastani Petroleum for $236 million including contingent payments, Kallanish Energy reports.

The companies signed a binding agreement for the transaction, which includes 100% interests in the El Manzala, West El Manzala, West El Qantara and North El Shalhiya concessions and associated development leases.

Dana Gas has been negotiating the sale of the assets since the second quarter of 2019, eventually receiving four offers. CEO Patrick Allman-Ward said in statement the sale forms a key part of its strategy to maximize returns to shareholders and optimize its portfolio.

“The completion of the sale process will allow us to strengthen our balance sheet and focus our attention on the development of our world class assets in the Kurdistan Region of Iraq, of which our current share of reserves are over 1 billion barrels of oil equivalent, with considerably more resources for realization and development,” he added.

The UAE-based private gas company will still retain its interests in the onshore and offshore exploration concessions in Egypt, El Matariya and North El Arish, and will look to maximize the value of these assets.

This post appeared first on Kallanish Energy News.