Sharjah-based Dana Gas’ shares hit a 2017 high of AED0.77 ($0.21) on 5 September as investors welcomed the company’s $1bn settlement with the Kurdistan Regional Government (KRG).

This is almost double the value shares were trading at on 29 May, and 20 per cent higher than the value of shares before the Kurdistan settlement was announced on 30 August.

Dana Gas share price

Dana Gas share price

Dana Gas share price

In the announcement on 30 August, both parties said the KRG would immediately pay $1bn to Dana Gas and its partners in order to settle a court case that had begun in 2013.

The settlement is the latest in a number of moves by the KRG to try and clear outstanding debts and resolve disputes with oil companies.

In August, the regional government signed several deals with oil producers that operate in its territory.

Under the term of the KRG’s settlement with Dana Gas and its partners, the regional government said it would immediately pay $600m to the Pearl consortium.

Dana Gas and its parent, Crescent Petroleum, own 70 per cent of the Pearl consortium. Their partners, Austria’s OMV, Hungary’s MOL and Germany’s RWE, each own 10 per cent.

The KRG also agreed to immediately pay $400m towards developing the fields operated by the Pearl consortium in Kurdistan.

Pearl operates Kurdistan’s Khor Mor and Chemchemal gas fields. As part of the agreement, it said it would increase production at Khor Mor by 500 million cubic feet a day within two years.