Clean Energy for the MENA Region's Tomorrow

Clean Energy For the MENA Region’s Tomorrow

Dana Gas Investors Presentation

March 2016

www.danagas.com 1 Forward Looking Statement

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

www.danagas.com 2 Presentation Outline

 Gas – Growth fuel in MENA

 Dana Gas – Overview

 Country Operations – Egypt and KRI

 Project Update – Zora Gas, UAE

 Credit Metrics

 Relative Valuations

 Summary

www.danagas.com 3 Gas is the growth fuel of the 21st Century. Gas has strong environmental credentials and is cost competitive

Current full lifecycle costs for new-build power generation including CO2 emissions from fuel externalities (US$/boe) (% share of global emissions)

Gas 20% Coal 44% Oil 36%

Switching from coal to gas could reduce CO2 emissions …and Air Pollution Rated Deaths by more than 50% by more than 12%... according to the IMF

Assume: Europe coal US$62/tonne, NW Europe spot gas at price band of US$8-11/mln BTU, 80% load factor, €7.0/tCO2; uses IMF May 2015 estimates for coal and gas air pollution and GHG externality costs www.danagas.com Source: Bloomberg, IMF 4 MENA region has strong economic growth credentials. Energy requirements of the region are expected to increase.

400 Population growth in MENA countries 350 Bahrain Qatar 300 Kuwait Oman 250 Libya 200 UAE Tunisia 150 Yemen 100 Saudi Arabia Population (millions) Population Iraq 50 Algeria Egypt 0

GDP growth in MENA countries (US$ billions, current prices)

www.danagas.com Source: UN Population Division, IMF 5 MENA gas demand is growing strongly. Dana Gas is well placed to be one of the region’s leading independent suppliers of this gas.

2000-14 MENA gas demand (bcm)* 600 Other ME Gas demand growth 500 Kuwait (2000-2014 CAGR) 400 Algeria Qatar China – 14.5% 300 Egypt 200 UAE MENA – 6.4% Saudi Arabia 100 US – 1% Gas consumption (bcmpa) Iran 0

Gas use as share of total primary energy demand Supply demand balance of MENA overtime Middle East North Africa (Algeria + Egypt) Exported production Re‐exports Consumed Production Coal Hydro Other Hydro Other 1% 1% 0% 2% 1% 800 700

600

500 Oil 562 16.6 Oil 2.8 41% 400 Gas mmboe/d 47% mmboe/d 300 51% Gas 319 56% Gas balance, bcm pa 200 100 158 92 0 2004 2014 www.danagas.com * Historical data for Tunisia and Libya unavailable

Sources: BP Stats, IEA 6 Dana Gas as regional gas integrated player focused on matching resource with markets

Gas Resource* Holders in MENA (Total Reserves: c. 92 tcm)

40 Access to Private Capital Open 30 Potentially Open Closed/inaccessible 20

Proved gas reserves, tcm 0 Iran Qatar Iraq^ Saudi UAE Algeria Egypt Kuwait Libya Oman Syria Yemen Bahrain Arabia

2014 MENA gas demand by country. (Total Demand: c. 550 bcm pa) 180 160 140 120 100 80 60 40 2014 gas demand 2014 (bcmpa) 20 0 Iran Saudi UAE Egypt Qatar Algeria Oman Kuwait Bahrain Tunisia Libya Iraq Yemen Arabia www.danagas.com *60-70% of Middle Eastern gas resources are associated gas (IHS). ^ Iraq total includes KRI resource estimate

Source: BP Statistical Review 2014, BMI 7 Dana Gas – Business Profile

www.danagas.com 8 Dana Gas: Independent E&P company listed on the ADX

Dana Gas is operating at the heart of the world’s  Dana Gas is a MENA focused gas independent largest hydrocarbon region headquartered in the UAE

 Quoted in the Abu Dhabi Securities Exchange. Bloomberg: DANA:UH

 Shares outstanding: c. 6969 million Market capitalisation: c. $ 911 million (on 16/02/2016) Enterprise value1: $ 1.292 billion

 Net Debt/(Cash)2: $ 379 million (2015 YE)

 Current Production: 63.9 kboepd (2015 YE)

 2P Reserves3: 686 mmboe (2015 YE)

 Strong Corporate Governance and a unique pan- MENA Board of Directors access to business opportunities in the world’s largest hydrocarbon region

www.danagas.com 1. Enterprise value includes $2mln of minority interests 3.Includes Egypt & UAE reserves at end of 2015 and Khor Mor field reserves based on Pearl Petroleum’s 9 2.Total interest bearing debt less cash estimate of 2P reserves based on production data Dana Gas works across the gas value chain addressing both domestic and export market needs in MENA region

Dana Gas is operating at the heart of the Production Profile world’s largest hydrocarbon bearing region CAGR 10.3%

Net reserves & resources (YE 2015) Midstream and Business Model across the gas value 2P reserves (Gaffney Cline & Associates 2015, Pearl Petroleum) Downstream assets in chain – Meeting energy needs of MENA domestic and export markets

Based on production data from 1 of 12  EBGDCo – Liquid identified Extraction plant (LPG) compartments in Khor Mor (KM) field  UGTC & SajGas - Gas Transportation and Processing  35% in Crescent Natural Gas Corporation Limited (CNGCL) – Gas marketing www.danagas.com *Includes 700bpd from EBGDCO (LPG plant) **In addition to the KM 2P reserves identified by Pearl Petroleum (PPCL) based on current production, PPCL also estimates total risked in place resource 10 volumes (P50) of 75tcf of gas and 7bn bbl of oil in KM and Chemchemal fields Consistent production growth, delivery and financial performance since 2007

Production Revenue

CAGR: 5%

CAGR: 10.3%

Profit After Tax CAGR: 21.6%

www.danagas.com *Includes 700bpd from EBGDCO (LPG plant) 11 Dana Gas: Country Business Highlights EGYPT

www.danagas.com 12 Egypt gas market fundamental are sound. New gas discoveries and gas imports are likely to return Egypt’s domestic demand to its historic growth trajectory

Egypt annual gas supply/demand balance (post Zohr) Egypt’s current and planned regas capacity (Source: Woodmac) (Source: company data, Interfax) Producing Sanctioned Projects LNG Exports LNG Imports 70 Probable Projects Zohr Demand

Forecast

30 Gas Supply, bcm Gas Supply,

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 www.danagas.com 13 Dana Gas is the 6th largest operator and 5th largest onshore producer in Egypt

2016e Gas Production Ranking in Egypt (Source: Woodmac) (* denotes company is an operator) 1,800 1,600 Mainly onshore production 1,400 Dana Gas Egypt Credentials: Mainly offshore production 1,200 8th largest producer 1,000 6th largest operator 800 5th largest onshore producer 600 400

2016 WI Production, mmcfpd 200 0

Gas Reserve Ranking of Independents in Egypt EBGDCO LPG Plant (Source: Dana Gas, Woodmac) (Dana Gas holds 26.4% of the project) 800

600

400

200 Gas resources, bcf 0

www.danagas.com 1.Edison holds 100% operating interest in Abu Qir, but the development is operated by a 50:50 JV with EGPC – Edison not designated as operator 14 2. Dana Gas reserves based on 2015 year end reserve estimate Egypt: Nile Delta Operations

El Wastani Development Leases: • Onshore acreage consisting of 14 Development Leases in the prolific Nile Delta region Production: • 4Q 2015 avg 32.2 kboe/d versus 37.6 kboe/d for 4Q 2014. Decline in production followed a steady and Balsam 3 Balsam 2 predictable downward curve associated with normal field decline which was partially reversed when Balsam field production and well completions were brought on stream in 4Q 2015.

Operations: Begonia DL • Post Balsam-2 and Balsam-3 completions, SD-4, SF-5 and SAEN-7 wells were successfully completed in South El 4Q 2015. Manzala • SF-5 has hit KES pay with 2 new accumulations named Roaa and Anes. SAEN-7 proved a separate compartment with deeper gas water contact. www.danagas.com * Excluding EBGDCO share of Production 15 Gas Production Enhancement Agreement (GPEA) helps Egypt increase production while delivering long term value to Dana Gas

Gas Enhancement Project – Execution Progress

• Longest gas column encountered in Dana Gas Egypt portfolio.

• Pulse test between Balsam-1 and Balsam-2 indicated single compartment.

• Significant reserve add with higher than expected condensate to gas ratio.

• Proven plus probable reserves in the Horst structure certified by GCA have increased by more than 50%.

• Balsam-3 discovery well has proved up the play in the western part of the development lease

• This is a separate hydrocarbon filled structure from Balsam Horst increasing the resource base in this development lease with 2P estimated ultimate recovery of 73.4 bcf.

• Based on Balsam-3 results, further 2 exploration wells and 1 development well are planned within development lease in 2016.

www.danagas.com 16 Block 6 – North El Arish Offshore Opportunity

• Block-6 (100% WI)

• 1782 sq km of full fold 3D seismic acquired in October 2015 by PGS Ramform Titan boat.

• 3D seismic processing completed in January 2016.

• Initial processing results indicates numerous play types with significant potential based on offset discoveries

• Farm-out activities have started and interest has been shown by other players.

www.danagas.com 17 Egypt: Block 1 - North El Salhiya Exploration Newly awarded exploration blocks in Nile Delta enables Dana Gas to build on its core area production and utilising existing infrastructure

• Block-1 (100% WI)

• Targets prolific Abu Madi play

• Other plays include: Kafr El Sheikh and Oligocene Activities

• Reprocessing of ~800 sq km of 3D seismic ongoing by Western Geco.

• Tender prepared for the reprocessing of 2D seismic data.

• Plan to drill 4 exploration wells in 2017.

www.danagas.com 18 Egypt: Block 3 - El Matariya Exploration Newly awarded exploration blocks in Nile Delta enables Dana Gas to build on its core area production and utilising existing infrastructure

• Block-3 (Dana Gas 50% WI)

• BP is operating Block-3 as 50/50 partner. The primary target is the deeper HPHT, and high-potential Oligocene play which has been proven in the offshore Nile Delta with very success rates and with high materiality (multi tcf).

• Expected spud date for Mocha- 1 exploration well is April 2016.

• Studies are underway for early production from Mocha-1 well in the event of success.

www.danagas.com 19 Dana Gas: Country Business Highlights Kurdistan Region of Iraq

www.danagas.com 20 Operations in Kurdistan Region of Iraq

 DG share of production averaged 28,800 boepd during 4Q 2015. Gross production details are as follows:

 313 MMscfd of natural gas

 13,703 bbl/d of condensates

 830 MT/d LPG

 The Mol sieve bed for the first train at Khor Mor plant was replaced in October 2015

 Upon expiry of the direct local sales contract, KRG commenced direct lifting of LPG and Condensate from 20 September and 7 October 2015, respectively from the Khor Mor plant through a nominated local contractor. This continued till December 2015.

 RWE acquired a 10% working interest in PPCL as part of its arbitration settlement in November 2015 www.danagas.com 21 Rich gas and condensate producer with strong growth track record

Pearl Petroleum Company Ltd ownership: Dana Gas 35 % Khor Mor Field Production, Dana Gas net share Crescent Petroleum 35 % 35 OMV 10 % MOL 10 % Gas * RWE 10 % Liquids(Condensate + LPG) 30

15 Production (kboed)

0 www.danagas.com *Current Condensate Gas Ratio (CGR) on Khor Mor is c. 45 bbl/mmscf comparable to Qatar North Field CGR of 47~50 22 **2015 data based on Dana Gas’s reported share of gross production in the KRI of 29.3kboepd Khor Mor and Chemchemal are potentially largest gas fields in the KRI and comparable to large scale gas developments in the region

Large Gas Developments in MENA (Source: Company disclosure) 110

100

Gas initially (tcf)resourcesin placeinitially Gas 20

0 KhorMor + Miran Bina Bawi Khazzan * Leviathan Zohr Al Hosn Atoll Aphrodite Salamat Chemchemal** (Tight Gas) + Tamar (Egypt) (sour gas) (Egypt) (Cyprus) (Egypt) Oman (Israel) UAE www.danagas.com Notes: Volumes exclude associated liquid and oil upsides. * Recoverable volume expected to be 10%-15% of gas initially in place at Khazzan 23 **PPCL’s latest P50 estimate of total risked in place resources is 75tcf (Khor Mor + Chemchemal) Dana Gas: Project Update – Zora Gas, UAE

www.danagas.com 24 Zora Offshore Platform - Ready for gas production

 Platform installation, hook up and commissioning completed.

 Wire line operation for un-plugging the well completed successfully.

 Repair works completed on the offshore pipeline, where concrete coating was damaged by Third party vessel anchors.

www.danagas.com 25 Zora Gas Processing Plant - Construction completion and handover

 All systems powered up, commissioning activities and start-up ongoing.

 Commissioning of truck loading facility for condensate export completed.

www.danagas.com 26 Zora Operations start-up progress

 First gas delivered to site 10/01/16.

 Pipeline and well cleaned up with well flowing approx. 45 mmscfd.

 Gas production started on 14/01/16.

 Gas processing shutdown again 15/01/16, due to foaming problems. Contaminated chemical inventories changed and pipeline cleaned to remove well fluid liquid build up.

 Gas processing re-started 21/01/16, operating problems encountered with vessel level measurements.

 Remedial modifications carried out and plant returned to operations for start up 04/02/16.

 Plant ready for restart but advised by SNOC that SEWA power station unable to receive gas due to other planned maintenance activities ongoing.

 Planned to re-commence commissioning and start-up end Feb 2016. www.danagas.com 27 Dana Gas: Credit Metrics

www.danagas.com 28 Additional financial information

Dana Gas additional financial metrics

Period Unit Value

EBITDA LTM US$m 191

EBIT LTM US$m 93

Net debt Current US$m 379

Net debt / EBITDA LTM x 2.0

Interest cover ratio LTM x 1.4

Book leverage (Net debt / Total assets) Current x 10%

Average years to maturity Current Years 1.7

www.danagas.com *LTM as of Q3 2015 results 29 Dana Gas Sukuk Instruments

Dana Gas share price vs. convertible trading value Convertible Sukuk: Sukuk convertible trading value (USD) Dana Gas share price (AED) 140 1.2  Principal amount: $352 120 1.0 mln 100 0.8 80  Coupon: 7% (payable 0.6 quarterly) 60 0.4 40  Maturity: 31/10/2017 Share price (AED) price Share

20 0.2  Conversion price: 0.75 Convertiblevaluetrading(USD) 0 0.0 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 AED/sh Dana Gas convertible mid yield to maturity  Conversion ratio: 48.9733

20 18 Ordinary Sukuk: 16 14  Principal amount: $400 12 mln 10

maturity (%) maturity 8  Coupon: 9% (payable 6 Convertible mid yield to to yield mid Convertible 4 quarterly) 2 0  Maturity: 31/10/2017 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16

Source: Bloomberg. Market data as at 16 February 2016. www.danagas.com 30 Leverage and interest coverage ratio in line with peers

Debt servicing: Net debt / EBITDA

-2

-4

Net debt / EBITDANet/ debt -6

-8

-10 DNO Premier Dana Gas Petroceltic Genel Lundin Tullow

Note: Net debt is as of latest reports. EBITDA is a LTM value as of 9M 2015.

Interest cover ratio

4 2 0 -2 -4 -6 -8 -10 -12

EBIT / Interest expense Interest / EBIT -14 -16 -18 Dana Gas DNO Premier Genel Tullow Lundin Petroceltic

Note: EBIT and Interest expense are LTM values. Lundin based on 2015 actuals. Source: Bloomberg www.danagas.com 31 Book gearing and Leverage comparable to industry peers

Total debt to total assets

20 Total debt todebt total assetsTotal 10

0 Lundin Premier Tullow DNO Petroceltic Dana Gas Genel

Debt to common equity

600

500

400

300

200

Debt to common equityDebttocommon 100

0 Lundin Premier Tullow DNO Petroceltic Dana Gas Genel

Source: Bloomberg. Market data as at 16 February 2016. www.danagas.com 32 Long reserve life of assets underpins debt

Years to average maturity

1 Years to average maturity (#) averagematurity to Years

0 Tullow DNO Premier Genel Dana Gas Lundin Petroceltic

2P reserve life

2P reserve life (years) life reserve 2P 10

0 Lundin Petroceltic Dana Gas* DNO Genel Tullow Premier

Source: Bloomberg. Market data as at 16 February 2016. www.danagas.com *Dana Gas 2P reserves include KRI estimates of 525mmboe net to Dana Gas from Khor Mor 33 Dana Gas: Relative Valuations

www.danagas.com 34 EV and Production valuation relative to peers

Enterprise value vs 2015 production

EV ($bn) 2015 Production (kboepd) 10 100

9 90

8 80

7 70

6 60

5 50

4 40

3 30 WI Production (kboepd) Production WI Enterprise Value ($ ($ bn) Value Enterprise 2 20

1 10

0 0 Lundin Tullow Premier Dana Gas DNO Gulf Keystone Genel Petroceltic Circle Oil Transglobe

Source: Bloomberg. Market data as at 16 February 2016. www.danagas.com Source: Company Data, Bloomberg 35 Significantly undervalued relative to peers

EV / EBITDA (2017E) Price / EPS (2017E)

8 25 6.8 20.5 7 6.4 19.8 20 6 5.3 5.0 5 Mean* ~4.5 15 13.0 Mean * ~13.2 12.2 4 2.9 3 2.6 2.5 10 8.4

2 (2017E) EPS / Price 5.1 EV EV / EBITDA(2017E) 5 1 n.a. 0 0 Lundin Petroceltic Dana Gas Tullow Premier Genel DNO Premier Lundin Dana Gas Tullow Genel DNO Petroceltic

Price / CPS (2017E)

4.5 4.1 4.0

3.5

3.0 2.8 2.5 2.4 2.5 Mean* ~2.2 1.9 2.0 1.6 1.5 Mean* ~2.3 Price/ CPS(2017E) 1.0 0.4 0.5

0.0 Lundin DNO Petroceltic Dana Gas Genel Tullow Premier www.danagas.com Source: Bloomberg Consensus as of 16/02/2016 * European Peers mean ratio 36 EMEA E&P relative performance since 1st July 2015

Relative market performance since 1st July 2015 0%

‐10%

‐20%

‐30%

‐40%

‐50%

‐60% Relative Performance Relative ‐70%

‐80%

‐90%

‐100% DNO Brent Lekoil Genel Cobalt Vaalco Ithaca Kosmos Inter oil EnQuest Circle oil DanaGas Africa Oil Soco Intl. Indus gas Bowleven Tullow Oil Shamaran Petroceltic Det Norske Premier Oil TransGlobe Karoon Gas Rockhopper Cairn Energy Ophir Energy Gulf Keystone Green Dragon Maurel & Prom Western Zagros Oryx Petroleum Faroe Petroleum Lundin Petroleum Sterling Resources Bankers Petroleum www.danagas.com Source: Bloomberg, performance as of 16/02/2016 37 EMEA E&P relative performance since October 2015

Relative market performance since October 2015

20%

10%

‐10%

‐20%

‐30%

‐40% Relative Relative Performance ‐50%

‐60%

‐70%

‐80% DNO Brent Lekoil Genel Cobalt Vaalco Ithaca Kosmos Inter oil EnQuest Circle oil DanaGas Africa Oil Soco Intl. Indus gas Bowleven Tullow Oil Shamaran Petroceltic Det Norske Premier Oil TransGlobe Karoon Gas Rockhopper Cairn Energy Ophir Energy Gulf Keystone Green Dragon Maurel & Prom Western Zagros Oryx Petroleum Faroe Petroleum Lundin Petroleum Sterling Resources Bankers Petroleum

www.danagas.com Source: Bloomberg, performance as of 16/02/2016 38 Relative share price performance of Dana Gas

Relative performance of Dana Gas vs market indices

140%

Received 120% Signed the Abu Dhabi Index +57% US$53mln GPEA in Egypt Partial award from Egypt in KRI Successful Arbitration resolution of 100% RWEST Arbitration Achieved record

80% 2013 production S&P GCC Index +20% in Egypt

60% Approval of Sukuk refinancing

40% Dana Gas +7%

Relative performance (%) performance Relative 20%

- MSCI EM Index -31%

(20%)

Upgraded El Wastani Tribunal order for KRG (40%) plant and signed to restore the previous FTSE 350 Oil & Gas Index -34% agreement for Block 6 regular payments

(60%) Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Source: Bloomberg. Market data as at 16 February 2016. www.danagas.com 39 Dana Gas has performed in line with international peers in H2 2015

40%Relative performance of International peers since July 2015 60%Relative performance of International peers since Oct 2015

20% 40%

- 20%

(20%) -

(40%) (20%) Relative performance (%) performance Relative Relative performance (%) performance Relative (60%) (40%)

Dana Gas -2% Lundin +12% (60%) (80%) Lundin -12% Tullow -12%

Tullow -53% Dana Gas -13%

Premier -78% Premier -52% (100%) (80%) Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Source: Bloomberg. Market data as at 16 February 2016. Source: Bloomberg. Market data as at 16 February 2016. www.danagas.com 40 Dana Gas has outperformed its Middle Eastern (ME) peers in H2 2015

Relative performance of ME peers since July 2015 Relative performance of ME peers since October 2015 40% 60%

40% 20%

20% -

(20%)

(40%)

(40%) Relative performance (%) performance Relative (%) performance Relative

(60%) (60%)

Dana Gas -2% Dana Gas -13% (80%) DNO -43% DNO -33% (80%) Gulf Keystone -63% Gulf Keystone -57% Genel -79% Genel -61% Petroceltic -81% Petroceltic -69% (100%) (100%) Jul 15 Sep 15 Nov 15 Jan 16 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Source: Bloomberg. Market data as at 16 February 2016. Source: Bloomberg. Market data as at 16 February 2016. www.danagas.com 41 Summary

www.danagas.com 42 Summary

 2015 has been a tough year with a difficult business environment, and the future is continuing to look challenging with oil having already hit a low of $27/bbl this year.  However, it has also been a year of significant progress:  Rejuvenated the management team with the appointment of Iman Hill, as Technical Director and GM for the UAE and Egypt and appointed a new CFO, Chris Hearne, who joined us just after year- end  Egypt has exceeded expectations with its reserves upgrade, success in the development and exploratory appraisal drilling program in Balsam has opened up the field to further appraisal wells and growth potential  Exploration growth potential is being tested in Blocks 1, 3 and 6. On Block 3, drilling of the deep Oligocene HPHT well by BP as operator with DG cost carried should show results by end 2016, and in the success case will be a game changer for the Company  Zora, the flagship UAE project and also the first offshore project – has been completed and gas has already been processed through the plant  The increase in reserves figures represents real progress that better reflects the underlying true value of the Company to it’s shareholders  Positive results were achieved in our arbitration cases  Dana Gas is better prepared to face the challenges of the current lower oil price environment and positioned for the future upturn  We are confident that we can continue to add value to our shareholders even at the prevailing low oil prices www.danagas.com 43 Contact Us:

Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : [email protected] Direct : +971 6 519 4401 Fax : +971 6 556 6522