Dana Petroleum
Press Release
11th February 2003
DANA PETROLEUM plc (“Dana”, “the Company” or “the Group”)
DANA ACHIEVES FURTHER PRODUCTION GROWTH AND DRILLING SUCCESS IN THE UK NORTH SEA
The Board of Dana is pleased to announce further strong growth
in the UK, with first oil production from the Caledonia field,
a doubling of oil production at the Banff field following drilling
of the B5 well and the discovery of oil at the 'Drum' structure
near the Claymore field.
First production of oil from the Caledonia field, in which Dana
holds a 25.78% interest, commenced on 9th February 2003. The
field is located in UKCS block 16/26 approximately 130 miles
north east of Aberdeen. The development features a horizontal
production well tied back to the Britannia platform via a 3.5
mile pipeline. Production from this well is expected to average
around 10,000 barrels per day over the first year. Further development
of the field will be considered over the next few years subject
to the performance of the first well.
In the Banff field, where Dana holds a 12.4% interest, the horizontal
B5 well was drilled from the main subsea template to a depth
of 8,726 feet encountering a 1,150 feet section of oil-bearing
chalk reservoir within the Ekofisk and Tor formations. The well
was completed as a producer and brought onstream in December
2002. Since this time, field production has increased from approximately
11,000 barrels of oil equivalent per day ("boepd") to around
22,000 boepd.
The C76 well, in which Dana holds a 7.52% interest, was drilled
from the Claymore platform to test the 'Drum' prospect. This
technologically challenging well was drilled to a depth of 19,770
feet with a significant horizontal step-out of some 10,500 feet.
The well encountered a total of 265 feet of oil-bearing sandstone
within Cretaceous age sandstones. The well is now being completed
as a producer and is expected to be brought onstream over the
coming weeks.
Dana's average production for 2002 was approximately 8,170 boepd,
an increase of 41% over the 2001 figure of 5,777 boepd. Following
the completion of the acquisition of a North Sea asset portfolio
from Agip in October, and subsequent successful drilling, Group
production has now grown to over 15,000 boepd. This represents
an approximate trebling of production since mid-2002 and has
resulted in over 90% of Dana's oil and gas revenues now being
derived from the North Sea.
Tom Cross, Dana's Chief Executive, commented:
"Dana's continued production growth and drilling success in the North Sea demonstrates that a sound strategy delivered through technical rigour, commercial agility and local knowledge can realise very attractive investment returns from both exploration and development activity in the UK."
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Andy Bostock, Technical Director | Dana Petroleum plc | 01224 652400 |
| Archie Berens | College Hill Associates | 020 7457 2020 |
