Press Release
31st March 2004
DANA PETROLEUM PLC
("Dana", "the Company" or "the Group")
Preliminary Results for the Year Ended 31 December 2003
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 preliminary results for 2003.
HIGHLIGHTS
Strong Growth in Production
- Average production more than doubled to 17,270 boepd (2002: 8,170 boepd)
- Portfolio strengthened to 9 producing fields by year-end
Record Operating Performance
- Turnover increased 124% to £86.5 million (2002: £38.6 million)
- Operating Profit increased 266% to £34.1 million (2002: £9.3 million)
- Net Profit up 188% to £19.6 million (2002: £6.8 million)
- Earnings per share climbed to 26.5p (2002: 9.2p)
- Net Cash Flow from Operations trebled to £52.2 million (2002: £16.4 million)
- Gearing reduced to 6% (2002: 34%)
Successful Developments and Acquisitions, Increase in Reserves
- Otter and Caledonia new field developments completed and brought onstream
- Successful infill drilling at Banff and Claymore oil fields
- Upper Salym field onstream and Shell JV agreed to $1 billion Salym area development
- Acquired Kittiwake and Mallard oil fields, with Gadwall, Goosander, Grouse discoveries
- Proven and probable reserves increased to 123.7 mmboe (2002: 116.0 mmboe)
Exploration Programme Advanced, Significant Discovery offshore Mauritania
- Pelican gas field discovered with first Mauritania well. Studies indicate 1 Tcf of gas-in-place
- Major geoscience project highlighted further drilling targets in Blocks 1 and 7 Mauritania
- Secured valuable farm-outs to accelerate seismic and drilling offshore Kenya and Australia
- Completed 2 new seismic acquisitions offshore Kenya and Western Australia
- Awarded 9 new blocks around Dana's existing fields in UK 21st Licensing Round
Bright Outlook with Intense Period of Activity Ahead
- Banff gas re-injection project approved for mid year start-up
- Development sanction on track for 4 fields (Gadwall, Cavendish, F16-E, Ujung Pangkah)
- Currently planning 10 exploration and appraisal wells, from a portfolio of 17 targets
- Imminent spud of 2 appraisal wells at Ujung Pangkah, offshore Indonesia
- Fiddich exploration well to drill in 2Q offshore Western Australia, with Dana free-carried
- Further drilling in Mauritania (Block 1) and the North Sea scheduled later in 2004
- Planned 2004 capital spend of £45 million (£31m on development, £14m on exploration)
Charles Smith CBE, Chairman of Dana, commented:
"2003 was an excellent year for Dana with significant increases in production, reserves and bottom-line financial performance. The Company also drove forward its exploration programme and made an exciting gas discovery with its first well offshore Mauritania. Early indications are that the Pelican field contains around one trillion cubic feet of gas-in-place.
We are looking forward to an important year ahead, which should see the sanction of four new field developments and further exploration and appraisal drilling in the North Sea, Mauritania, Indonesia and Australia.
Dana is in a strong position to deliver future growth with a sound financial base and a portfolio of attractive exploration and development opportunities."
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Enquiries to:
| Dana Petroleum plc | Tel: 01224 652400 | |
| Tom Cross, Chief Executive | ||
| David MacFarlane, Finance Director | ||
| Andy Bostock, Technical Director | ||
| College Hill Associates | Tel: 020 7457 2020 | |
| James Henderson |
