Press Release

26th February 2001

DANA ADDS SIGNIFICANT NEW GAS RESERVES IN INDONESIA


Dana Petroleum plc is pleased to announce the successful completion of an appraisal drilling programme on the Ujung Pangkah Field in the Pangkah Production Sharing Contract (PSC) area offshore East Java, Indonesia.

Click for larger view.Analysis of results by leading independent experts, Degolyer and MacNaughton, has determined recoverable gas reserves for the field to be approximately 450 billion cubic feet of liquids-rich gas (equivalent to around 90 million barrels of oil). The appraisal programme has also confirmed the presence of a significant oil accumulation underlying the gas, which will be the subject of further study.

Following the successful Sidayu-1 oil discovery within the Pangkah PSC Area, announced in November 2000, the Trident 17 jack-up rig was retained to drill three additional wells across the Ujung Pangkah field. Ujung Pangkah is located 5km south of the Sidayu discovery and was initially discovered by the UP-1 well, which tested gas and oil, in late 1998.

The appraisal programme consisted of two new vertical wells, UP-2 and UP-3, and a planned step-out sidetrack of the UP-2 well. All three wells encountered commercial hydrocarbons and revealed the size of the Ujung Pangkah structure to be towards the top of the range of expectations before appraisal. A comprehensive coring, logging and sampling programme was also carried out.

The Pangkah PSC co-venturers are now considering development options for the Ujung Pangkah and Sidayu fields and have commenced discussions for gas sales. An additional seismic programme is planned for later this year to evaluate a possible western extension to the Ujung Pangkah field.

Tom Cross, Chief Executive of Dana commented:

"The gas reserves identified at Pangkah have significantly exceeded our planned case and given the close proximity to gas sales markets we should now be able to look forward to an attractive commercial development. The discovery of further oil reserves in this PSC also creates material upside for the future."

 

Enquiries to:  
Dana Petroleum plc  
Tom Cross Chief Executive Tel. +44 1224 652400
   
College Hill Tel. +44 0207 457 2020
James Henderson  

 

Notes to Editors

Dana is a British independent oil and gas exploration and production company quoted on the London Stock Exchange. Since flotation in 1996, Dana's continued success has ensured growth of its oil and gas reserves, production and earnings year on year. Today the company holds over 60 oil and gas interests worldwide, with a strong focus on properties in Europe, West Africa and the Far East. Dana has also developed a strong track record of exploration success with 7 of its last 8 exploration wells yielding oil and gas discoveries; 3 in the North Sea, 3 in Indonesia and 1 in Ghana.

The co-venturers in the Pangkah PSC are: