Dana Petroleum
Press Release
23 June 2008
DANA PETROLEUM PLC
NEW ASSET DEAL IN NORWAY & EXPLORATION UPDATE
Dana is delighted to announce a deal which delivers three
additional exploration wells offshore Norway in partnership
with Det norske oljeselskap ASA (‘Det norske’), the second-largest
operating company on the Norwegian Continental Shelf. Dana is
also pleased to report on progress with additional drilling
plans for the UK and Egypt.
Dana’s wholly owned subsidiary Dana Petroleum Norway AS has
entered into swap arrangements with Det norske in respect of
a number of assets on the Norwegian Continental Shelf. The agreements
are subject to standard co-venturer and governmental approvals.
Dana will acquire from Det norske a 25% interest in PL450 and
also 10% interests in both PL035B and PL362 in exchange for
a 10% interest in PL027D. Det norske is also farming into block
PL027D under a separate transaction with another company. PL035B
and PL362, which are operated by StatoilHydro, are situated
to the east of the Frigg field in the Norwegian North Sea. The
large gas-condensate Fulla prospect is scheduled to be drilled
on the border between these two licences in October 2008. In
PL450, which lies just west of the Ula field and is operated
by Det norske, drilling is planned late 2009 or early 2010 with
the likely target being the Storebjørn prospect. Drilling is
also scheduled on PL027D, close to the producing Jotun oil field,
where the Eitri oil prospect will be targeted in late 2008 or
early 2009 using the Bredford Dolphin rig provided by Det norske.
As part of this transaction, Det norske has also committed to
provide a second rig slot to drill a further structure on this
block later in 2009. Dana will retain a 40% interest in PL027D
for both exploration wells and continues to hold its 45% stake
in the nearby Jotun oil field.
In the UK North Sea, following the recent significant oil discoveries
at West Rinnes and East Rinnes, Dana has now secured semi-submersible
rigs to drill two further wells in the area. The South-East
Rinnes structure will be drilled late in 2008 using the Stena
Spey rig. Then, in Q1 2009, the Byford Dolphin will be used
to drill the South-West Rinnes prospect. Both of these wells
will be operated by Dana.
In Egypt, Dana is working closely with its 50/50 partner Gaz
De France to secure a rig for further drilling in the Nile Delta,
following the recent successful gas discovery on the West El
Burullus concession. Operator IEOC is currently abandoning the
West Gihan-1 exploration well in the Gulf of Suez (Dana 20%).
Reservoir sands were found as prognosed in the Nubia formation,
however these were non-hydrocarbon bearing at this particular
location and the partnership group will now consider further
opportunities in this block. Dana recently announced it had
contracted the IO3 jack-up rig for drilling in the Gulf of Suez
through until January 2009. The Company is now pleased to report
it has agreed a further 6 month extension to this rig contract
which means it is available to drill continuously for Dana through
until mid 2009.
Elsewhere in Africa, discussions are progressing well regarding
rigs for drilling in Morocco and Mauritania.
Commenting on the news, Tom Cross, Dana’s Chief Executive said:
“The Norway deal delivers three further exploration wells
for Dana within the next 18 months. Each of these wells provides
the potential for material reserve additions with an attractive
chance of success close to existing production infrastructure.
Taken together they significantly broaden Dana’s portfolio in
Norway.
Dana is fast-tracking a further two wells in the UK’s Rinnes
area to help determine the total oil reserves in this prolific
Brent fairway, around our operated Hudson oil field, so that
development plans can be optimised.
So far in 2008, Dana has discovered the West Rinnes and East
Rinnes oil fields in the UK and made an important gas find at
West El Burullus with our first well offshore Egypt. A further
10 exploration wells are planned for the second half of the
year. ”
23 June 2008
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Stuart Paton, Technical & Commercial Director |
||
| Nick Elwes | College Hill Associates | 020 7457 2020 |
