Dana Petroleum
Press Release
21 December 2007
DANA PETROLEUM PLC ("DANA", "THE COMPANY", OR "THE GROUP")
OIL DISCOVERY AT KERLOCH AND EXPLORATION DRILLING UPDATE
Dana is pleased to announce the discovery of oil at the Kerloch
structure in Block 211/22a NW in the UK Northern North Sea.
This is the first well in Dana’s major 21 well exploration and
appraisal drilling campaign, which is scheduled to include 20
further wells in 2008.
The Dana operated Kerloch well, 211/22a-10 was drilled to a
total depth (TD) of 12,282 feet and encountered a full Brent
reservoir sequence, as predicted prior to drilling. The top
of the Brent sandstone section came in approximately 60 feet
high to prognosis. The majority of the Brent sequence was successfully
cored and extensive electric wireline logging operations are
now ongoing and nearing completion.
The well has discovered an oil column of some 116 feet in the
Ness Formation and a number of oil samples have been taken.
The crude oil gravity is around 32 degrees API with a gas-oil
ratio in line with other discoveries in the area. The Kerloch
well was designed as a slim-hole finder well with a long open
hole section being drilled to TD. Given the successful gathering
of comprehensive data, including cores, wireline logs, reservoir
pressure measurements and fluid samples, the joint-venture group
has decided not to carry out a drill stem test in this well
as this would add significant cost and technical risk. There
have been a considerable number of tests of the Brent sands
in neighbouring wells in the area, including the 2006 East Causeway
well which flowed from the Ness Formation in the block immediately
adjacent to Kerloch at stabilised rates of up to 7,500 barrels
of oil per day.
The Kerloch well will now be suspended to allow potential re-entry
and future use. Dana holds a 50% stake in the Kerloch oil discovery
and throughout Block 211/22a NW, which already contains an earlier
oil discovery.
After completing operations on the Kerloch well, the Sedco-704
drilling rig will move directly to drill the Morgan exploration
well in the UK Central North Sea, where Dana holds a 35% interest.
Morgan is targeting a Palaeocene oil prospect in close proximity
to Dana’s Greater Kittiwake Area oil producing interests.
Dana has also contracted the Ensco-100 jack-up rig to drill
the Scolty exploration well (Dana 100%) in the UK Southern North
Sea. The well is due to spud before the end of December and
is expected to take approximately 40 days to reach the Rotliegend
sand reservoir target.
In the UK Northern North Sea, Dana is on schedule to begin the
Rinnes exploration programme before mid January 2008, using
the Byford Dolphin semi-submersible rig. Drilling at Rinnes
will comprise a well and a sidetrack as Dana is targeting two
Brent fault blocks close to the Dana operated Hudson oil field.
In Norway, Dana is also participating in the Bjorn exploration
well (Dana 25%), to the east of the giant Troll field. Drilling
is expected to start before year-end and take around 35 days.
Commenting on the news, Tom Cross, Dana’s Chief Executive said:
“We have now begun the most exciting programme of drilling
in Dana’s history. The Kerloch well results are very encouraging,
following on just a few weeks after discovering oil with our
first well in Norway.
Dana will be drilling 3 wells simultaneously during January,
with a further 17 wells planned during 2008. These wells are
being focused in the UK, Norway and Egypt targeting new oil
and gas reserves through an extensive and balanced exploration
campaign.”
21 December 2007
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 |
