Press Release
23rd July 2002
DANA PETROLEUM PLC
("Dana" or the "Group")
DANA MAKES NEW UK DISCOVERY, WINS NEIGHBOURING LICENCE AND PREPARES TO DRILL IN GHANA AND WESTERN AUSTRALIA
The Board of Dana is pleased to announce that the 23/16c-8 exploration well, recently drilled to test the 'Barbara' prospect in the UK North Sea, has discovered a full hydrocarbon column in the Forties formation. The well, in which Dana will have a 27% interest following the completion of the Agip acquisition, was successfully drilled by the Glomar Arctic IV drilling rig. The well encountered a 276 feet thick sandstone reservoir of excellent quality. Subsequent down-hole fluid sampling has determined the hydrocarbon to be a liquids rich gas condensate similar in composition to the nearby Everest and Lomond fields which are already in production.
The results of the Barbara well will now be further evaluated with a view to determining a future appraisal strategy. These studies will include examining the exploration potential of neighbouring Block 23/11, which the UK Energy Minister announced last week has been awarded to the Barbara co-venturers (Dana 27% interest).
The Board of Dana is also pleased to report the achievement of two other significant milestones in the delivery of its 2002 exploration programme.
- Offshore Ghana, a contract has been signed with Diamond Offshore to hire the Ocean Whittington semi-submersible drilling rig to undertake the second exploration well in the Western Tano Contract Area. The WT-2X well will be drilled in the vicinity of Dana's earlier WT-1X oil discovery, with an estimated start date in August 2002. The targeted horizons have been evaluated from 3D seismic to have the potential to contain up to 100 million barrels of oil. Dana holds a 90% interest.
- In Western Australia, the Dana Group has now finalised its arrangements to drill a second exploration well in Permit WA 226-P. Following conclusion of a series of successful farmout steps over recent months, Dana will hold a final equity interest of 30% and enjoy a free carry of its costs through the Morangie-1 well, scheduled for October 2002. A letter of intent has been issued to contract the Sedco 702 semi-submersible drilling rig by well operator Apache Energy Limited. The well is targeting a prospect with the potential to contain up to 250 million barrels of oil located in a basin where prospectivity has recently been upgraded following the 'Cliff Head' oil discovery. Several more large prospects are also present in WA 226-P should the Morangie well prove successful.
Tom Cross, Dana's Chief Executive, commented:
"Whilst the Barbara discovery continues Dana's strong track record in exploration, with nine oil and gas finds from its last eleven wells, Barbara also represents the first step in a new multi-well drilling programme over the next two years. With a well now drilling to test the Drum structure close to the Claymore field in the North Sea and planning underway to drill offshore Ghana and Western Australia, we look forward to an exciting period of exploration ahead."
For further information please contact:
| Tom Cross | Chief Executive | 01224 652 400 |
| Andy Bostock | Technical Director | 01224 652 400 |
| Archie Berens | College Hill Associates | 020 7457 2020 |
