Press Release
23rd November 2005
DANA PETROLEUM PLC
("DANA", "THE COMPANY", OR "THE GROUP")
International Exploration Update
Dana is pleased to provide an update on its international activities which are focused on high impact exploration in Africa.
Offshore Mauritania, the Stena Tay drilling rig is now on location in Block 1 and has commenced drilling operations on the Faucon-1 well, the first of a number of higher-risk but potentially transforming wells which Dana intends to drill on its operated Mauritanian acreage over the next few years. The Faucon prospect is a Cretaceous age channel system sealed against a salt diapir with the potential to contain over one billion barrels of oil in place. Planned total well depth is 4,200 meters below sea level which is expected to be reached in approximately 30 days. Following completion of the recently announced exchange agreement with Gaz de France the partners in Block 1 will be Dana 36% and operator, Gaz de France 24%, Energy Africa (a subsidiary of Tullow Oil) 20%, Hardman Resources 18% and Roc Oil 2%. All of Dana's costs in the Faucon-1 well being carried by Gaz de France.
Offshore Morocco, the acquisition of a 2,150 square kilometre 3D seismic survey over the North-West Safi exploration licence has recently begun. This survey aims to define drilling targets on a number of prospects identified from a 2D survey carried out in 2004, with a view to commencing exploration drilling in 2007. The partners in the North-West Safi licence are Dana 26.25%, Norsk Hydro 48.75% (operator) and Moroccan state organisation 'ONAREP' 25%.
Following the recently
announced agreement with Gaz de France to acquire exploration and development
interests in Algeria and Egypt, complementing Dana's existing interests
in Mauritania, Senegal, Morocco and Kenya, Dana's international operations
will now cover six countries. To optimise the rapid growth of this international
asset base, Dana continually reviews its portfolio to identify any licences
which may fall below its targeted rate of return. As a result of this
process, agreement has been reached with the Kenyan authorities to cease
discussions regarding an extension to the initial term of Block L10 offshore
southern Kenya and to simultaneously relinquish outlying ultra-deep water
Block L11. Dana will retain its interest in Blocks L5 and L7 in the northern
region of offshore Kenya where a number of exciting prospects have been
identified for drilling, starting in 2006. Dana holds an attractive commercial
position in L5 and L7, with two thirds of the costs associated
with its 30% interest being carried by operator Woodside Energy.
Further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Andy Bostock | Dana Petroleum plc | 01224 652400 |
| Nick Elwes | College Hill Associates | 020 7457 2020 |
