Company Strategy

Balancing investment between exploration, development and production opportunities, and between North Sea and international investment. Traditionally Dana has focused less on the development stage of the lifecycle. However, as the company grows this stage will become an increasingly important element for building value, as recently demonstrated with the Goosander, Enoch and Cavendish developments.

Maximising the probability of success by spreading the exploration portfolio between North Sea and international spend, and by drilling a range of prospects with different risk profiles and varying geology. The Company strongly believes that exploration success should be driven by taking a portfolio approach. To that end, Dana is exposed to 32 exploration and appraisal wells to the end of 2008.Strong Growth in Oil and Gas Reserves.

Using exploration as leverage to accelerate growth by trading exploration positions for production and development opportunities and by trading between geographical areas. This strategy accelerates cash flow, reduces the requirement for large capital expenditure in the development phase and delivers assets in the core focus areas.

The Company is in a strong financial position, with good cash flow generation from the existing Company portfolio and will seek to maintain this platform so that the Company can leverage future growth opportunities with confidence. Over recent years, this approach has allowed the Company to remain unhedged with respect to commodity prices, thereby providing full exposure to the strong commodity price environment. This strategy is however, constantly under review and continually challenged and in particular will be reassessed when significant volumes of uncontracted gas are added to the portfolio.