Press Release

Second oil find in Ghana and progress with deep water prospects

In Ghana, the WT-2X well has been completed in the shallow-water region of the Western Tano Contract Area as a follow up to the WT-1X well drilled in 2000. The well was drilled to a total depth of 10,910 feet below sea level by the Ocean Whittington semi-submersible drilling rig. At 6,135 feet, the well encountered a 75 feet interval of oil bearing Upper Campanian reservoir, similar to that production tested in the WT-1X well, thus demonstrating the lateral extent of the previous find. Detailed analysis of well results, including reservoir fluid samples recovered from the well, is now underway to assess the commerciality of the Upper Campanian oil accumulation.

Indications of hydrocarbon were also present in the Albian horizon encountered below 9,300 feet. This reservoir was found to be of poorer quality than the equivalent section in the WT-1X well and is therefore thought unlikely to add significantly to the development potential of the shallow water region at this time.

Concurrently with the shallow-water drilling operations, extensive geoscience work has continued to refine drilling locations in the deep-water area of the licence, where the geology is quite different. Utilising leading edge seismic analysis technology in the USA, several high-potential structures have now been defined. These deep-water prospects are an order of magnitude larger than previous finds in the shallow water, with each structure having the potential to contain several hundred million barrels of oil. Preliminary operational planning is in progress with a view to commencing deep-water drilling in late 2003.

Australia well spudded

Offshore Western Australia, the Sedco 702 semi-submersible drilling rig has spudded a well to test the Morangie prospect in Perth Basin exploration permit WA-226-P. Dana has a free-carried 30% interest through this well following commercial transactions with Origin Energy and Voyager Energy. Over recent years a number of new oil and gas discoveries have been made in the Perth Basin, which have enhanced the prospectivity of this relatively unexplored area.

3D seismic survey accelerates Mauritanian exploration

Dana has commenced acquisition of a large 3D survey in Block 1 offshore Mauritania. This follows the recently announced completion of a farm-in agreement between Energy Africa and Dana. The 1,330 sq km survey is being acquired to evaluate in more detail several large leads previously identified on Dana's 2D seismic data set with a view to firming up potential drilling locations. The data will be acquired by the PGS vessel "Ramform Victory" with initial processing being undertaken on board to accelerate availability of the seismic data for detailed interpretation.

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