Press Release
31st March 2005
DANA PETROLEUM PLC
("Dana", "the Company" or "the Group")
Preliminary Results for the Year Ended 31 December 2004
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 2004.
HIGHLIGHTS
Record Operating Performance
- Average production increased to a record high of 18,608 boepd (2003: 17,270 boepd)
- Turnover rose 27% to £109.5 million (2003: £86.5 million)
- Operating profit climbed 43% to £48.8 million (2003: £34.1 million)
- Net profit and earnings per share increased to £22.4 million and 30.1p respectively (2003: £19.6 million and 26.5p)
- Net Cash Flow from Operations up to £61.2 million (2003: £52.2 million)
- Gearing eliminated with net cash position of £20.5m at end 2004 (end 2003: net debt of £9.5m)
- Proven and probable reserves increased to 124.8 mmboe at end 2004, representing 51% of the Group's total technically recoverable hydrocarbon resources of 243.7 mmboe.
Commercial Deals Continue to Strengthen Asset Portfolio
- Exited Indonesia in exchange for a major interest in, and operatorship of, the producing Hudson oil field in the UK Northern North Sea
- Secured new interest in the producing Johnston gas field in the Southern North Sea
- Built positions in and around the Barbara gas discovery and in Northern North Sea exploration blocks ahead of 2005 drilling
- Increased stake in strategically important Block 1 offshore Mauritania ahead of 2005 high potential drilling and acquired new positions in Mauritanian and Senegalese acreage surrounding Block 1
- Acquired extensive new exploration acreage across the Great Australian Bight
- Valuable farm-outs of higher risk exploration areas (WA-226-P offshore Western Australia, Block 8 offshore Mauritania and Blocks L5/L7 offshore Kenya) completed ahead of major expenditure
- Accelerated cashflow from Salym area through sale of minority shareholding in Evikhon company for US$28 million
Exploration, Appraisal and Development Programme Delivering Growth
- Banff gas re-injection project well work completed; further successful infill drilling at Claymore
- Gadwall field development, Mallard water injection project, Johnston gas field extension and F16-E field development all in progress
- Cavendish, Enoch and Goosander developments all advancing for sanction in 2005
- Two successful wells drilled offshore Indonesia to appraise the Ujung Pangkah gas field, adding value ahead of divestment
- Major 3D seismic surveys completed across Block 7 and Block 8 offshore Mauritania, 2D surveys completed offshore Senegal, Kenya and the Great Australian Bight
- Commitments made to drill important exploration wells in Block 1 offshore Mauritania and Block L-5 offshore Kenya in 2005
- Intensive geoscience work on North Sea portfolio has led to a six well exploration and appraisal drilling campaign in 2005
Exciting Period of Activity Ahead
- First UK exploration well in 2005 discovered oil at Melville, close to Dana's Hudson field
- A further seven exploration and appraisal wells planned in 2005, including five wells in the North Sea and important deep-water wells offshore Mauritania and Kenya, each with the potential to contain over one billion barrels of oil in place
- Overall plans include a total of 17 exploration and appraisal wells by end 2006, targeting 1.2 billion barrels of potential reserves net to Dana
- Significant North Sea development programme underway to ensure production growth; a total of 15 fields planned to be on stream by end 2006 and expected to deliver over 30,000 boepd
- Dana's oil production is currently un-hedged and thus benefiting from 2005 oil price strength
- Further asset acquisitions and trades under negotiation
Commenting on the Results, Colin Goodall, Chairman of Dana, said:
"Dana is making excellent progress. The Group has strengthened its UK production base and exploration is being driven forward across all core areas. 2005 has started well with an oil discovery at Melville, the Gadwall field on-track for first oil production next month and the Company securing rigs to drill several key exploration and appraisal wells this year"
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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 | |
| Nick Elwes |
