Press Release
5th August 2003
DANA PETROLEUM PLC
("DANA", "THE COMPANY", OR "THE GROUP")
Dana Awarded Five New Licences Adjoining UK Oil and Gas Fields
Dana is pleased to report that it has been successful in its recent applications for new UKCS licences. The UK Energy Ministry has confirmed that the Company is being offered five new licences, covering interests in nine offshore blocks, as part of the Government's UKCS 21st Licensing Round.
The first three licences comprise five Southern North Sea gas basin Blocks 43/13b, 43/14, 43/18, 43/19b and 43/20e. This acreage surrounds Dana's existing interest in Block 43/19a containing the Cavendish gas field, which is currently moving towards development sanction. Dana has gained a 25% interest in these five blocks as part of a joint application with RWE Dea, the operator of the Cavendish field where Dana also holds a 25% stake. The work programme for these new licences will include the reprocessing and interpretation of existing 3D seismic data, following which the joint venture group may choose to either drill a well on or relinquish each of the licences.
The remaining two licences cover four Central North Sea Blocks 21/13b, 21/16b, 21/17b and 21/18b. These provide new opportunities to explore around the Kittiwake and Mallard oil fields in which Dana recently agreed principles with Shell and ExxonMobil to acquire a 50% interest. Dana has won a 50% interest in these new licences as part of a joint application with Venture Production, its coventurer and operator in the Kittiwake acquisition. The joint venture group has been granted a period of two years in which to fully assess the exploration potential of the blocks before either making a commitment to a future work programme or relinquishing.
Commenting on the news, Tom Cross, Dana's Chief Executive, said:
"Dana is committed to building upon its track-record of North Sea exploration success which has seen 6 discoveries from the last 6 wells. Licensing rounds provide an excellent opportunity to grow our prospect portfolio at very low cost and hence continue to meet our target of finding oil and gas for less than $2 per barrel. By focusing on blocks around existing fields, and maintaining commercial alignment, we can ensure that any new discoveries are driven efficiently into production."
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Andy Bostock, Technical Director | Dana Petroleum plc | 01224 652400 |
| James Henderson | College Hill Associates | 020 7457 2020 |
