Press Release
26th November 2004DANA PETROLEUM PLC
("DANA", "THE COMPANY", OR "THE GROUP")
Dana sells minority holding in Russian company Evikhon for US$28 million
Dana is pleased to announce that its wholly owned subsidiary, Dana Petroleum (Russia) Limited, has signed an agreement with Sibir Energy plc ("Sibir") by which Dana will sell its minority 10% shareholding, with attaching rights and obligations, in the Russian company OAO Evikhon for a consideration of US$28 million.
The consideration will comprise $21.7 million in cash and the issue to Dana of 1,400,000 new ordinary shares in Sibir valued at 250 pence per share, post Sibir's planned 10 for 1 consolidation announced today. As Sibir is an existing shareholder in OAO Evikhon, its purchase of Dana's interest will be subject to the normal approval process of the Federal Anti-Monopoly Service of the Russian Federation. Sibir shareholder approval to the issue of the new shares to Dana will be sought at an EGM expected to take place before the end of December 2004. Approval is expected, but if it were not granted Sibir has undertaken to procure settlement of the whole $28 millon consideration in cash.
Completion of the transaction is expected to take place in early 2005.
Tom Cross, Dana's Chief Executive, commented:
"This divestment parallels Dana's recent exit from Indonesia and is in line with the Company's strategy to maximise near-term returns from non-core assets and invest those profits into Dana's principal growth areas of the North Sea and West Africa, where an extensive drilling programme is planned over the next 2 years."
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Nick Elwes | College Hill Associates | 020 7457 2020 |
