Press Release
24th August 2005
DANA PETROLEUM PLC
("DANA", "THE COMPANY", OR "THE GROUP")
Dana Receives Development Approval for the Cavendish Gas Field
Dana Petroleum is pleased to announce receipt of approval from the UK Secretary of State for Trade and Industry for the development of the Cavendish gas field located in UK North Sea Block 43/19a.
The Cavendish field consists of gas bearing Carboniferous age sandstones discovered in 1989 by well 43/19-1, which was production tested at gas flow rates of up to 33 million standard cubic feet per day (mmscfpd). The discovery was later appraised by two more wells drilled in 1991 and 1996. Total gas-in-place in the Cavendish field is currently estimated to be up to approximately 400 billion standard cubic feet (bcf).
Cavendish will be developed at a total cost of approximately £120 million by three production wells drilled from a minimum facilities platform and tied back to the ConocoPhillips operated Murdoch Platform, located some 44km to the south-east of Cavendish. Gas will then be exported from Murdoch through the Caister Murdoch System (CMS) trunk pipeline to the Theddlethorpe Gas Terminal in Lincolnshire where it will be sold into the UK gas market.
Production is planned to start in October 2006 at rates of around 100 million standard cubic feet per day (mmscfpd) and the field is expected to continue to produce until 2016.
The participants in the development are Dana Petroleum (E&P) Limited (25%), RWE Dea UK (50% and operator) and GDF Britain Limited (25%).
Commenting on the news, Tom Cross, Dana's Chief Executive, said:
"Dana set itself the target of gaining approval for the development
of three new UK oil and gas fields in 2005. Cavendish represents the second
of these, having achieved sanction of the Enoch oil field in July. In
addition, we are on track to begin the Goosander oil field development
before year end. All three of these fields are expected to come on stream
during 2006, giving Dana a total of fifteen producing fields and a significant
boost to production next year."
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Andy Bostock, Technical Director | Dana Petroleum plc | 01224 652400 |
| Nick Elwes | College Hill Associates | 020 7457 2020 |
