Dana Gas has started production from the Zora gas field in the Sharjah Western Offshore Concession, 35km from Sharjah and Ajman in the UAE.

The concession covers a total area of more than 1,000km².

Operating the Sharjah Western Offshore Concession with a 100% interest, Dana Gas will also manage the field and gas sales, as well as purchase agreements.

Gas would be transported with the help of a subsea pipeline to a newly built onshore gas processing facility constructed by the company in the Hamriyah Free zone in Sharjah.

"Despite a very tough business environment, Dana Gas is entering a new and exciting phase of its development."

Zora is expected to achieve a flow-rate of 40 million cubic feet a day. Natural gas produced at the field will be sold for power generation in the domestic market.

Dana Gas CEO Dr Patrick Allman-Ward said: "The project represents a considerable investment by Dana Gas and the resulting gas output will support clean, domestic power generation for Sharjah for years to come.

"Despite a very tough business environment, Dana Gas is entering into a new and exciting phase of its development.

"Our exploration and development activities in the UAE and in Egypt will provide a short to medium term boost to our overall production levels and thereby help to offset the decrease in revenue and profits resulting from the current low oil price environment."

In March 2008, Dana Gas signed a 25-year concession agreement with the Sharjah Government for the Shrajah Western Offshore block, which includes the Zora field.

The company achieved initial project startup on 14 January and is also operating and producing in Egypt, Kurdistan and now in the UAE to diversify its asset portfolio.