Dana Petroleum
Press Release
12 June 2007
DANA PETROLEUM PLC ("DANA", "THE COMPANY", OR "THE GROUP")
DANA MAKES STRATEGIC ACQUISITION IN NORWAY
Dana Petroleum plc ('Dana') has today signed conditional
subscription and acquisition agreements for shares in the Norwegian
independent oil company Ener Petroleum ASA ('Ener') which, upon
completion, will lead to Ener becoming a controlled subsidiary
of Dana.
Firstly, Dana has agreed terms to conditionally subscribe for
1,518,750 new shares in Ener at a subscription price of NOK
160 per share. The subscription represents approximately 53%
of the fully diluted share capital of Ener following the issuance
of the new shares to Dana. These funds will be applied to grow
the Ener exploration and production business on the Norwegian
Continental Shelf.
In addition, Dana has entered into conditional share acquisition
agreements for the purchase of certain existing shares in Ener,
all at a price per share of NOK 220 payable in cash. Upon completion
of these transactions, Dana will control approximately 93.7%
of the total shares in Ener, which will then become the Norwegian
subsidiary of Dana. Once Dana has reached 100% shareholding
in Ener, the effective purchase price Dana will have paid to
acquire 100% of Ener will be approximately £24 million.
The transactions are subject to certain conditions, including
regulatory approvals from the Norwegian Ministry of Petroleum
and Energy and The Norwegian Ministry of Finance.
Chief Executive Officer of Dana Petroleum, Mr Tom Cross commented:
"The acquisition of Ener is directly in line with Dana's
strategy, which is delivering strong growth from exploration
and production across the North Sea and Africa.
This deal represents an important step for Dana as it will create
a substantial business in Norway with the technical and financial
strength to build further. Upon completion of this transaction
and pending completions in Egypt, the Dana Group's total number
of producing fields will rise to 30, of which 17 will be in
the North Sea. The Ener deal will add to Dana approximately
5,400 barrels of oil equivalent per day and most importantly
accelerate a portfolio of attractive business opportunities
in Norway, with the first exploration target scheduled for drilling
in the next quarter."
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Nick Elwes | College Hill Associates | 020 7457 2020 |
| Erik Faureng | ABN AMRO, Norway | +47 2200 5052 |
| Andrew Foster | ABN AMRO, London | 020 7678 7106 |
Nothing in this announcement should be construed as a profit
forecast or be interpreted to mean that the future profits of
Dana will necessarily be greater than the historical published
profits of Dana.
This document does not constitute or form part of any offer
or invitation to sell, allot or issue or any solicitation of
any offer to purchase or subscribe for any securities, nor shall
it (or any part of it) or the fact of its distribution form
the basis of or be relied upon in connection with, or act as
any inducement to enter into any contract or commitment for
securities.
Forward-looking statements
Some of the statements in this announcement are forward-looking.
Forward-looking statements include statements regarding the
intent, belief and current expectations Dana or its officers
with respect to various matters. When used in this announcement,
the words 'expects,' 'believes, ''anticipates,' 'plans,' 'may,'
'will,' 'should' and similar expressions, and the negatives
thereof, are intended to identify forward-looking statements.
Such statements are not promises or guarantees, and are subject
to risks and uncertainties that could cause actual outcome to
differ materially from those suggested by any such statements.
These forward-looking statements speak only as of the date of
this announcement. Information contained in this announcement
cannot be relied upon as a guide to future performance. Dana
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
contained herein to reflect any change in its expectations with
regard thereto or any change in events, conditions or circumstances
on which any forward-looking statement is based.
Copies of this announcement are not being, and must not be,
mailed or otherwise forwarded, distributed or sent in, into
or from the United States of America, Canada, South Africa,
the Republic of Ireland, Australia or Japan.
