Press Release
28th September 2006
To view or download the complete results please click
here: Interim_pdf INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006
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 North Sea production, reports its interim results for the first half of 2006.
HIGHLIGHTS
Strong Growth in Production and Cashflow
- Current production of over 30,000 boepd
- Dana on target to deliver over 40,000 boepd by end 2007
- Turnover increased by 22% to £87.6m on first half average production
of 18,408 boepd
- Profit Before Tax, Interest and exceptional items rose 33% to £48.9m
- Pre-tax Profit of £43.4m after exchange loss of £6.1m leading
to Earnings Per Share of 31.2p
- Record Cash Flow from operations up 44% to £70.1m
- Net cash increased to £94.1m
Successful 2006 Exploration and Appraisal Programme
- Three North Sea E&A wells Babbage, East Causeway and E18-6, all found
new oil & gas reserves
- New seismic surveys acquired offshore Egypt, Morocco and Australia
- Rigs secured for drilling of three major deep water prospects in Kenya
and Mauritania
Extensive Development Activity Ensuring Future Production Growth
- Goosander field delivered onstream ahead of schedule, with production
exceeding expectations
- Successful development drilling and workover campaigns completed on Mallard,
Claymore, and F16-E fields to access new reserves and extend field life
- Cavendish gas field and Enoch oil field developments progressing well,
with first production scheduled for early 2007
Asset Trading Providing a Balanced Portfolio and New Opportunities
- Completion of Gaz de France exchange deal now announced: Dana gains increased
stake in Johnston gas field, production from Anglia gas field, and 30% of
West El Burullus, Nile Delta plus $30 million drilling carry in Mauritania
- Agreement reached on additional portfolio of assets to be acquired from
Gaz de France
- Important new ventures secured through further deals in Egypt and Morocco
Exciting Outlook for Exploration and Production
- Three further high impact exploration prospects, Aigrette (Mauritania)
and Pomboo and Sokwe South (Kenya), to be drilled in the next six months
- Currently planning to drill up to 34 E&A wells through end 2008, approximately
half of which will target large prospects with major upside potential
- Awaiting outcome of bids in latest UK and Egyptian licencing rounds
- Dana's un-hedged position maximises the benefits from oil and gas price
strength
Colin Goodall, Chairman of Dana, commented:
"Dana has continued to make excellent progress through 2006, delivering record cashflow with production rising to current levels of over 30,000 barrels per day. The Group now produces from 14 oil and gas fields with two more under development and further projects are expected to be sanctioned in the year ahead. The Company remains on target to increase production to over 40,000 barrels per day by the end of 2007.
Exploration and appraisal drilling is advancing strongly with all three North Sea wells drilled so far this year proving up new reserves, and three further international exploration wells scheduled during the next six months.
With a substantial inventory of quality prospects and rising cash flow, Dana intends to continue the pace of new drilling with an ambitious plan for up to 34 wells by the end of 2008."
28 September 2006
Enquiries to:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| David MacFarlane, Finance Director | Dana Petroleum plc | 01224 652400 |
| Stuart Paton, Technical & Commercial Director | Dana Petroleum plc | 01224 652400 |
| Nick Elwes | College Hill Associates | 020 7457 2020 |
