2006 Highlights

Strong Growth in Oil and Gas Reserves

Proven and probable reserves increased to 130.6 million barrels of oil equivalent at end 2006 (2005: 111.5 million barrels)
Oil and gas reserve additions represent a reserves replacement of 336% for the year

Record average oil and gas production of 22,285 boepd up 13% (2005: 19,683 boepd)
Production capacity increased significantly during 2006 to a new high of 30,000 boepd at year-end
Delivered a 30% increase in revenue, to a new record of £215.3 million (2005: £165.6 million)
Underlying business performance on a strong upward growth trend
Currently producing from 14 oil and gas fields. This will rise to 29 fields during the second half of the year, on completion of new UK developments and the Devon Egypt acquisition
Profit before tax, interest and “one-off” items rose 27% to £106.8 million (2005: £84.1 million)
Reported pre-tax profit (after all adjustments) for the financial period £97.1 million (2005: £107.8 million)
Record cash flow from operations up 31% to £139.9 million (2005: £107.1 million)
Net funds of £109.9 million at end 2006, an improvement of £18.1 million

Three North Sea wells, Babbage, East Causeway and E18-6 all discovered new oil & gas reserves
New light oil discovery at Aigrette, during Dana operated campaign offshore Mauritania
Accelerated acquisition of seismic surveys offshore Egypt and Morocco
Pursuing strategic entry into Norway
Awarded 16 new blocks by UK Government in 24th Licensing Round

Goosander field delivered onstream ahead of schedule, with production exceeding expectations
Successful development drilling and workover campaigns completed on Mallard, Claymore, and F16-E fields to access new reserves and extend field life
Cavendish gas field and Enoch oil field developments to deliver first production by end Q2 2007
Several additional oil and gas fields being actively progressed towards development including the Barbara and Babbage gas fields and the Grouse and Causeway oil fields

Gaz de France deal completed: Dana gains increased stake in Johnston gas field to 49%, 25% of Anglia gas field, and 30% of West El Burrullus, Nile Delta, plus $30 million drilling carry in Mauritania
Additional assets being acquired from Gaz de France: a further 20% of West El Burrullus; a 25% interest in the Cavendish UK gas development, and two exploration interests in Norway
Important new ventures secured through further deals in Egypt (working with BP) and Morocco (working with Repsol)

Group production for 2007 expected to average between 31,000 and 34,000 boepd
On target to increase production capacity to 40,000 boepd by the end of 2007
New developments will lead to a producing portfolio of 15 fields in the North Sea by mid 2007, 16 fields on-stream in total
Up to 32 exploration and appraisal wells being planned during next two years, targeting potential reserves of approximately one billion barrels of oil equivalent net to Dana