Dana Petroleum
Press Release
20 May 2008
DANA PETROLEUM PLC
DANA STRIKES SIXTH DEAL IN EGYPT
Dana Petroleum is pleased to announce that it has signed
an agreement with Santos Egypt Pty Ltd (“Santos”) to acquire
a 40% interest in the South East July Production Sharing Contract
(“SE July PSC”), located in the Gulf of Suez, offshore Egypt.
This latest deal, which is subject to normal regulatory approvals,
secures attractive new prospects for drilling in a core area
for Dana and builds upon the five transactions the Company has
already completed in Egypt.
Dana will operate the next well in the SE July PSC using the
InterOcean-III jack-up drilling rig, which has just begun working
for Dana in the Gulf of Suez.
Dana has contracted the InterOcean-III rig for an initial 8
month period, running from May 2008 continuously through until
January 2009. The Company plans to firstly workover existing
oil production wells and undertake infill drilling at its operated
East Zeit producing oil field. Dana will then embark on an extensive
exploration programme in the Gulf of Suez, including the first
SE July well which Dana will drill on behalf of the joint-venture
group.
The SE July PSC is situated within the same area of the Gulf
of Suez as Dana’s existing producing oil infrastructure at East
Zeit. Therefore the East Zeit production hub, operated by Dana,
will provide a valuable development option for oil discoveries
which may be made in the SE July PSC. This new concession is
also in the same area as the North Ghara PSC, where Dana is
working with BP and recently acquired new seismic data to identify
and high-grade drilling targets.
Tom Cross, Dana’s Chief Executive Officer commented:
“Dana is delivering significant business growth in Egypt,
where it now holds production, development and exploration assets
across the key oil and gas provinces of the Gulf of Suez, the
Western Desert and the Nile Delta.
This latest deal utilises the expertise and operational capability
of our team to add exciting new prospects into Dana’s portfolio,
the first of which will be tested as part of the ongoing 2008
drilling campaign.
Dana is currently drilling two wells offshore Egypt, at West
El Burullus in the Nile Delta and at West Gihan in the Gulf
of Suez, and results from these are expected in the coming weeks.”
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Stuart Paton, Technical & Commercial Director |
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| Nick Elwes | College Hill Associates | 020 7457 2020 |
