Press Release
11 July 2001
DANA PETROLEUM PLC
("Dana" or "the company")
DANA TREBLES STAKE IN KEY NORTH SEA OIL FIELD
Dana Petroleum plc ("Dana") is pleased to announce completion of the acquisition of substantial further interests in UK Central North Sea Blocks 21/12 and 21/13a from Burlington Resources (U.K.) Inc. ("Burlington"), including Burlington's 25.9864% interest in the Shell operated Goosander oil field.
The deal more than trebles Dana's stake in the Goosander field from 11.3872% to 37.3736%, and significantly increases Dana's position in the surrounding acreage of 21/12 and 21/13a to 30.4409% and 24.997%, respectively, for a cash consideration of US$4 million with further payments contingent upon development of Goosander of up to US$10 million.
Drilling and other activities leading to development of the Goosander field as a sub-sea tie-back to Shell's Kittiwake platform have already commenced, with a view to achieving first production by mid 2002 at rates of around 15,000 barrels of oil per day. Recoverable oil reserves are currently estimated at approximately 16 million barrels but may prove much larger as no oil/water contact has yet been encountered in the reservoir.
Interests in the Goosander field and Blocks 21/12 and 21/13a following completion are as noted below.
Party |
Goosander |
Block 21/12 |
Block 21/13a |
Shell (Operator) |
31.3132% |
25.5047% |
27.503% |
Esso |
31.3132% |
25.5047% |
27.503% |
Dana |
37.3736% |
30.4409% |
24.997% |
Conoco |
Nil |
18.5497% |
19.997% |
Commenting on this acquisition, Dana's Chief Executive, Tom Cross, said:
"This area is of strategic importance to Dana's growth, combining near term development potential with a number of exciting prospects identified from 3D seismic. In a fiercely competitive environment, where premium prices are being paid for North Sea assets, Dana has secured this high quality position at a very attractive price."
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Enquiries: |
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Dana Petroleum plc |
Tel: 01224 652400 | |
| College Hill Associates Peter Brookes |
Tel: 020 7457 2020 | |
