Investor joy at Dana Gas settlement may be short-lived - The National

Investor joy at Dana Gas settlement may be short-lived - The National:

"A little good news can go a long way for the share price of even the healthiest company. So it proved for Dana Gas, when its shares resumed trading with a bang after the Eid Al Adha holiday. The Sharjah-based energy firm’s arbitration settlement with the Kurdistan regional government (KRG), announced on Friday, was, to put it mildly, a positive boost for the company. The settlement terms will see the KRG pay Dana and its partners in the Pearl Consortium US$600 million immediately, with a further $400m allocated towards the consortium’s further development of the region’s Khor Mor and Chemchemal gas fields. A further $1.24bn will be recovered by the consortium from future revenues. Dana shares, a traditional favourite of the UAE’s retail investment community,  were unsurprisingly the runaway winners on an otherwise quiet day for UAE bourses. The shares rose 14 per cent at the open and maintained such heights throughout the day, closing at a joint high for the year of 73 fils."



'via Blog this'