Outlook

Over recent years, Dana has built a substantial oil and gas asset portfolio. As a result of earlier successes, the Company now has a stream of developments which will ensure its continued growth.

By the middle of 2007, Dana expects to be producing from 16 fields, with 15 of these in the North Sea, providing a strong and well balanced cash flow engine. Completion of the Devon Egypt acquisition will add a further 13 fields, taking the total portfolio to 29 producing fields. The Company remains on course to meet its two-year target to double its 2005 production levels by the end of 2007. Dana's strong balance sheet has to date allowed it to remain completely unhedged with respect to oil price, thus maximising the benefits to the Company from continuing commodity price strength.

Over and above Dana's production growth, the Group is currently planning the drilling of up to 32 exploration and appraisal wells over the next two years, targeting on an unrisked basis a total reserves potential of over one billion barrels net to Dana.

In addition to its intense drilling and development programme, Dana is confident of maintaining a high level of commercial asset trading activity. The recent Devon Egypt acquisition has demonstrated Dana’s ability to conclude deals at attractive prices even in the prevailing tight market conditions. The Company will continue to pursue its proven strategy of using exploration success as leverage in commercial transactions to strengthen the asset base and accelerate returns.

In summary, Dana has developed into a substantial and well balanced independent oil and gas producer, with exceptional upside in its portfolio of assets. The Company is now poised for a major growth step and the next 12 months will be the most exciting in its development to date. The significant progress and strategic positioning achieved by the Group is testimony to the hard work and valuable contributions from the talented team in Dana.