Press Release

27th September 2007

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

DANA PETROLEUM PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007

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 2007. 

HIGHLIGHTS
 
Strong Growth in Production and Record Profits

• Record first half production of 25,830 boepd up 40%
• Group production capacity expected to grow to over 45,000 boepd by end 2007
• Turnover increased by 25% to a record high of £109.1 million
• Record Pre-tax Profit of £55.8 million up 29%, leading to Earnings Per Share of 31.8p

Significant Increase in Financial Capability

• Strong Cash Flow from operations of £62.7 million
• Successful convertible bond delivered proceeds of £141.5 million
• New US$400 million working capital debt facility

Two Major Transactions

• Acquisition of Devon Energy’s entire Egyptian portfolio
• Acquisition of independent oil company Ener Petroleum in Norway
• Dana now positioned with production, development and exploration in both countries, supplementing existing portfolio

Extensive Development and Exploration Activity to Ensure Future Production Growth

• Enoch oil field and Cavendish gas field brought on stream
• Development work ongoing in Claymore and Otter oil fields
• Currently drilling in Johnston and Cavendish gas fields
• Two E&A wells currently drilling in UK and Norway with a further four wells scheduled by the year-end

Disciplined Asset Management Creating a Balanced Portfolio and New Opportunities

• Series of tactical deals concluded to increase stakes in core assets with near-term drilling
• Divestment of minority interest in Causeway to accelerate and maximise cash returns

Outlook for Exploration and Production

• Extensive drilling programme with more than 30 wells planned over next two years
• Further prospects being advanced to drill-ready status to increase pipeline of opportunities
• Company’s un-hedged position maximises the benefits from continued oil price strength

 

Tom Cross, Chief Executive of Dana, commented:

“Dana has made excellent progress during 2007.  The Group now produces from 17 oil and gas fields with a further 13 being added in the next quarter.

The Company has demonstrated its ability to deliver value adding transactions in a tight market. Recent deals, including the acquisitions in Egypt and Norway, will ensure continued growth over the coming years.

With a substantial inventory of oil and gas developments, quality prospects and increased financial capability, Dana intends to continue an intensive drilling programme with more than 30 exploration and appraisal wells planned over the next two years.”

27 September 2007

 Enquiries:

 

Dana Petroleum plc	Tom Cross, Chief Executive	01224 652400
	David MacFarlane, Finance Director	01224 652400
	Stuart Paton, Technical & Commercial Director	01224 652400
College Hill Associates	Nick Elwes	020 7457 2020