Press Release
28th March 2006
DANA PETROLEUM PLC
("Dana", "the Company" or "the Group")
Preliminary Results for the Year Ended 31 December 2005
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 2005.
HIGHLIGHTS
Record Operating Performance
- Average production rose to a new record high of 19,683 boepd
- Revenue increased 51% to £165.6 million (2004: £109.5 million)
- Profit before tax climbed 232% to £107.8 million (2004: £32.5 million)
- Net profit increased 406% to £64.2 million (2004: £12.7 million) resulting in a near four-fold advance in earnings per share to 80.1p (2004: 16.5p)
- Cash generated from operations up 73% to £107.1 million (2004: £61.8 million)
- Net funds advanced to £91.8 million at end 2005 (end 2004: £20.5m)
- Added net 24.8 million boe of proven and probable reserves in the North Sea, giving a 36% increase to 94.4 million boe, after allowing for production
- North Sea now represents 85% of overall Group proven and probable reserves of 111.5 million boe following strategic exits from projects in Indonesia and Russia
- Total recoverable hydrocarbon resources of 235.8 million boe at end 2005
Extensive Field Development and Asset Trading Continues Production Growth
- Asset swapping strategy delivered new North Sea reserves and production from the Hudson and Johnston fields
- Dana achieved accreditation by UK Government as a North Sea production operator
- Successful year of infill drilling and well intervention activity, notably the re-activation of the Mallard oil field and the Johnston gas field extension project
- Gadwall oil field and F16-E gas field developments completed and brought on stream
- Developments approved for the Goosander and Enoch oil fields and the Cavendish gas field, with all three projects on target for first production in the second half of 2006
- Added significant value to portfolio, with new or incremental stakes acquired on attractive terms in five projects to be developed in the next few years
Successful Exploration and Appraisal Programme
- 2005 exploration and appraisal drilling campaign delivered four successes from six wells
- Faucon gas discovery offshore Mauritania proved working petroleum system and provides impetus for further exploration of the region
- Drilling delivered new oil discovery at South Melville and proved significant extensions to the Barbara and Johnston gas fields
- Highly successful in the UKCS 23rd Licencing Round winning 18 blocks in the Shetland-Faroe Basin and two in the Southern North Sea.
- Good progress in establishing two new business areas offshore Morocco and Egypt
- Large 3D seismic surveys recently acquired offshore Morocco, in the Shetland-Faroe Basin, in the Gulf of Suez and offshore South Australia
Outlook
- New field developments and further infill drilling expected to result in 2006 production being significantly ahead of 2005 levels
- Company remains on target to increase production capacity to 40,000 boepd by the end of 2007
- Development plans being actively progressed for seven new fields
- Attractive infill drilling opportunities identified in a number of existing producing assets
- Current unhedged position continues to provide full exposure to commodity price strength
- Eleven exploration and appraisal wells planned for 2006, ten of which have rigs committed
- Four of the 2006 exploration wells will target very large prospects offshore Mauritania and Kenya, each with company transforming potential
- Exciting exploration portfolio with participation in up to 40 wells by the end of 2008, targeting potential reserves of 2.1 billion barrels net to Dana.
Commenting on the Results, Colin Goodall, Chairman of Dana, said:
"I am delighted to report on the most successful year in Dana's history, delivering record production and earnings per share in addition to significant progress in international exploration.
The Company has driven forward its North Sea development programme resulting in three new oil and gas fields due on stream later this year, taking the Group's total number of producing fields to 15. In addition, our exploration and new business teams won attractive new licences in the UK and agreed deals for strategic entries into offshore Egypt and Morocco.
Dana is on track to increase production capacity to over 40,000 barrels per day by the end of 2007 and has forged an exciting exploration programme featuring up to 40 wells through 2008, which are targeting 2.1 billion barrels of potential reserves net to Dana."
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Enquiries to:
| Dana Petroleum plc | ||
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Andy Bostock, Technical Director | Dana Petroleum plc | 01224 652400 |
| David MacFarlane, Finance Director | Dana Petroleum plc | 01224 652400 |
| College Hill Associates | ||
| Nick Elwes | College Hill Associates | 020 7457 2020 |
