Dana Petroleum

Press Release

28th September 2004

To view or download the complete results please click here: Interim_pdf

DANA PETROLEUM PLC

Dana Petroleum, the independent oil and gas exploration and production company focused on growth through international exploration and the development of low risk production from the UK North Sea, reports its interim results for the first half of 2004.

HIGHLIGHTS

Strong Operating Performance and Enhanced Financial Position

  • Average Production achieved a new high of 17,895 boepd (1H 2003: 16,081 boepd)
  • Turnover increased by 32% to £48.7m (1H 2003: £37.0m)
  • Operating profit rose by 35% to £20.2m (1H 2003: £15.0m)
  • Cash flow from operations up 39% to £25.4m (1H 2003: £18.3m)
  • Profit after tax of £9.1m, giving rise to Earnings per share of 12.31p
  • Gearing eliminated with Net cash position of £1.3m (mid 2003: net debt of £41.3m)

Intense Commercial Activity Continues to Grow Asset Portfolio

  • Exchanged non-core Indonesian interest with Amerada Hess, with Dana gaining additional 28% interest in the producing UKCS Hudson field, taking stake up to 47.5%
  • Multi-faceted agreement with Woodside to exchange interests in Mauritania, Ghana and Kenya and acquire new licences offshore South Australia
  • Deal with Tullow to build Dana's Block 1 position offshore Mauritania, and option secured to acquire a stake in neighbouring licence offshore Senegal
  • Acquired Amerada Hess interests in the Barbara area of the Central North Sea increasing Dana's equity to 80% with appointment as Operator
  • Dana to increase holding in Melville area of the Northern North Sea ahead of Q4 drilling, through acquisition from Shell and ExxonMobil
  • Farm-outs of higher risk exploration areas (WA-226-P offshore Western Australia and Block 8 offshore Mauritania) completed on attractive terms

Work Programme Advancing in all Regions

  • Banff gas re-injection project, Gadwall field development and F16-E field development all approved and in progress. Development drilling has commenced at West Salym
  • Two successful wells drilled offshore Indonesia to appraise the Ujung Pangkah gas field
  • Large 3D seismic survey commenced across Block 8 offshore Mauritania
  • Commitments made to drill the first exploration well in each of Block 1 offshore Mauritania and Block 5 offshore Kenya

Exciting Outlook with Key Exploration and Develoment Steps Ahead

  • Three exploration wells to be drilled before year-end to test the Dorade (Mauritania), Fiddich (W. Australia) and Melville (N. Sea) prospects
  • First oil from Gadwall field and completion of Hudson-Pangkah exchange should significantly boost production in 1Q 2005
  • Infill drilling scheduled in Claymore and Mallard. Field development plans for Cavendish, Goosander and Enoch all progressing towards sanction
  • Up to ten further exploration and appraisal wells planned during next 18 months

Charles M Smith CBE, Chairman of Dana, commented:

"Dana's strategy is delivering excellent results. The first half of 2004 has seen strong operating performance and the Company has enhanced its portfolio, securing a number of attractive new opportunities with high quality co-venturers. As we move into 2005, Dana will be producing from ten fields, with four more advancing toward development. In addition to rising production from the UK, Dana is now positioned with an international exploration programme which will span a licensed area of over 130,000 square kilometres, one of the largest in the independent sector. "

Enquiries to:

Tom Cross (Chief Executive) Dana Petroleum plc 01224 652400
David MacFarlane (Finance Director) Dana Petroleum plc 01224 652400
Andy Bostock (Technical Director) Dana Petroleum plc 01224 652400
Nick Elwes College Hill Associates 020 7457 2020
View from an Oil Rig