Press Release
3rd December 2004
DANA PETROLEUM PLC
("DANA", "THE COMPANY", OR "THE GROUP")
Dana Begins Drilling and Seismic Operations Offshore Australia and Kenya
Dana is pleased to report that the Fiddich-1 exploration well has spudded offshore Western Australia, and that pre-drilling seismic acquisition has begun offshore northern Kenya.
The Fiddich well is being drilled in exploration permit WA-226-P by the "Sedco 703" semi-submersible rig to test a Permian sandstone prospect with the potential to contain up to 240 million barrels of oil in place. The licence operator, Origin Energy, has estimated mid-case reserves potential of the Fiddich prospect to be approximately 60 million barrels of oil (12 million barrels net to Dana) with an upside case of around 100 million barrels (20 million barrels net to Dana).
Dana is being free-carried on costs relating to the Fiddich well in accordance with the terms of the 3-for-1 farm-out deal agreed with Voyager Energy in February 2004. Under this agreement, Voyager is paying the costs associated with Dana's remaining 20% interest in the Permit to earn a 10% interest.
Offshore Kenya, the "Polar Duke" seismic survey vessel has commenced acquisition of a 3,600 km infill 2D seismic survey in Blocks L-5 and L-7. This survey will build upon and refine the 2003 survey data over the key prospects to allow exploration well locations to be selected for drilling, currently targeted towards the end of 2005. Dana is being free-carried on one half of the costs relating to its 40% interest in Blocks L-5 and L-7 in accordance with the terms of the 2-for-1 farm-out agreement signed in 2003 with Woodside Energy.
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Andy Bostock, Technical Director | Dana Petroleum plc | 01224 652400 |
| Nick Elwes | College Hill Associates | 020 7457 2020 |
Participants in the Fiddich well in WA-226-P will be as follows:
| Origin Energy | 28.75% (Licence Operator) |
| Apache Energy | 28.75% (Fiddich Well Operator) |
| Dana Petroleum | 20.0% |
| Voyager Energy | 10.0% |
| Roc Oil | 7.5% |
| Wandoo Petroleum | 5.0% |
