Dana Petroleum
Press Release
14 November 2008
DANA PETROLEUM PLC ("DANA", "THE COMPANY", OR "THE GROUP")
DANA AWARDED 29 NEW UK OFFSHORE BLOCKS
Dana Petroleum is delighted to report that it has been successful
in its extensive recent applications for new UKCS offshore blocks.
The UK Energy Ministry has confirmed that the Company is being
offered 11 new licences, comprising interests in a total of
29 offshore blocks or part-blocks, as part of the UK Government's
25th Offshore Licensing Round.
Dana’s first licence award covers 3 blocks in the important
Rinnes oil area of the Northern North Sea where Dana will hold
a 100% interest. The work programme consists of obtaining and
reprocessing seismic data with a well contingent on the results
of this work. This award is in a key growth area for Dana following
the success of the West Rinnes and East Rinnes oil discoveries
earlier in 2008. The award is particularly timely ahead of the
forthcoming Rinnes South-East and South-West wells, the first
of which is due to start drilling in December.
A further three licences comprise 16 blocks which lie in the
prospective West of Shetland region. These awards build on Dana’s
position in this proven petroleum province, which complements
its awards in previous rounds and its stake in Faroe Petroleum
plc where Dana is the largest shareholder with 27.2%. Two of
these licences cover 14 blocks in Quads 208 and 209 of the Faroe-Shetland
Basin. Dana has been awarded a material 30% stake with co-venturers
DONG (UK) Limited (40%) and GDF Britain (30%), who are Dana’s
co-venturers in neighbouring blocks. The committed work programme
for this acreage consists of acquiring 3D seismic, contiguous
with data acquired by the partnership group earlier this year.
The other West of Shetland licence comprises interests in 2
blocks in Quad 205, with co-venturer Nexen UK Limited, where
the committed work programme consists of obtaining and reprocessing
3D seismic data.
The other licences awarded to Dana are as follows:
- 50% interest, with Dana as operator, in two licences comprising 2 blocks in the Greater Kittiwake oil producing area of the Central North Sea,
- 100% interest in Block 16/12b, in the Central North Sea close to the producing Enoch oil field (Dana 8.8%),
- 25% interest in Block 22/29a (part), with Maersk Oil and Gas UK as operator, of the Central North Sea, which has a firm well commitment on a Forties-age prospect,
- 100% interest in a licence comprising Blocks 47/4d and 47/5b in the Southern North Sea adjacent to existing Dana acreage, and
- 50% interest in 2 licences comprising 4 blocks, operated by Eon-Ruhrgas UK Limited, adjacent to the producing Johnston gas field, which Dana and Eon jointly own.
Commenting on the news, Tom Cross, Dana’s Chief Executive said:
"These are very significant awards, positioning Dana to build upon its successful track-record of UK exploration activity which continues to deliver additional oil and gas reserves for the Company. The blocks awarded are focused on Dana’s core areas within the Northern, Central and Southern North Sea and the West of Shetland region. These awards demonstrate Dana’s ongoing commitment to the UK as part of its international portfolio."
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Stuart Paton, Technical & Commercial Director |
Dana Petroleum plc | 01224 652400 |
| Nick Elwes | College Hill Associates | 020 7457 2020 |
