Press Release

24th January 2002

 

DANA FARMS OUT AUSTRALIAN LICENCE
AHEAD OF NEW DRILLING PROGRAMME

Dana Petroleum is pleased to announce that it has reached agreement with Australian companies Origin Energy Limited and Voyager Energy Limited for Origin and Voyager to earn 30% and 5% equity interests respectively in the WA 226-P Permit in the Northern Perth Basin, offshore Western Australia. To earn their interests, Origin and Voyager will contribute on a promoted basis to the drilling of an exploration well by November 2002. Origin will operate the well from their Australian offices.

WA 226-P is located approximately 230km northwest of Geraldton and covers a large, under-explored extension of the northern Perth Basin. An earlier exploration probe in WA 226-P, the Livet-1 well, encountered an interpreted 65 feet of residual oil column in a reservoir thought to have been breached by fault activity following the formation of the original trap. The prospectivity of this region has recently been further upgraded by the significant oil discoveries in the 'Cliff Head' wells to the South, operated by Roc Oil, and the Hovea 1 oil discovery located onshore in permit L1, operated by Origin.

The next WA 226-P well will be drilled on the Morangie structure which has been identified and interpreted by Dana to have the potential to contain up to 250 million barrels of oil in place. The target reservoir is the sandstones of the Wagina Formation below the Kockatea Shale regional seal, the same reservoir/seal relationship recorded in other Perth Basin oil and gas fields. Several large follow up prospects are also present in WA 226-P. These will be evaluated following the drilling of Morangie.

Participants in WA 226-P following completion of the farm-ins will be:

Dana Petroleum plc 52.00%
Origin Energy Limited 30.00% (operator)
Black Rock Petroleum 13.00%
Voyager Energy Limited 5.00%

The above post farm-in interests take into account the withdrawal of EDC Australia in November 2001. Subject to government approval, the current Co-venturers are Dana Petroleum (80% and operator) and Black Rock Petroleum (20%).

Commenting on the successful farm-out, Tom Cross, Dana's Chief Executive, said:

"This is an excellent deal for Dana shareholders. Morangie is an exciting prospect in an emerging area, which can now be drilled this year. By successfully farming out to Origin and Voyager, Dana has kept a large interest in any future oil and gas discoveries whilst also minimising its own drilling costs."

 

Enquiries to:

Dana Petroleum plc	Tel: 01224 652400
Tom Cross, Chief Executive
Andy Bostock, Technical Director
College Hill Associates	Tel: 020 7457 2020
Archie Berens