Dana Petroleum
Press Release
28th September 2006
DANA PETROLEUM PLC ("DANA" OR "THE GROUP")
DANA STRIKES TWO NEW DEALS IN MOROCCO
Dana Petroleum is pleased to announce that it has entered
into two separate agreements which build upon the Company's
existing position in Morocco.
Firstly, Dana has signed an agreement with Repsol Exploracion
S.A. ("Repsol") to acquire a 15% working interest in the Tanger-Larache
Blocks 1, 2 and 3 offshore Morocco. In return, Dana will assign
to Repsol a 3% interest in Blocks L5 and L7 offshore Kenya.
Following completion of the transaction, which is subject to
normal regulatory and partner approvals, the Tanger-Larache
partners will be Dana 15%, Repsol 30% (operator), Gas Naturel
30% and Moroccan state organisation ONHYM 25%. The Block L5
and L7 partners will be Dana 27%, Woodside 30% (operator), Repsol
23% and Global 20%.
The Tanger-Larache blocks comprise a very large offshore area,
covering some 5,495 square kilometres, with water depths ranging
up to 600 metres. The co-venturers have already acquired some
520 square kilometres of 3D seismic aimed at refining exploration
prospects for drilling. Seismic has revealed a number of high-potential
prospects within a relatively short distance of the coast. These,
coupled with a nearby gas-fired power station and indigenous
market for gas, make the blocks very attractive for exploration
and development.
Secondly, Dana has signed an agreement with Tethys Oil AB ("Tethys")
and Eastern Petroleum (Cyprus) Limited ("Eastern") to acquire
a 50% working interest in the Exploration Permits resulting
from the Bouanane Reconnaissance Contract Licence area, onshore
Morocco. In return for being assigned the interest, Dana will
pay Tethys and Eastern's share of the costs in relation to acquiring
additional seismic over the licence. Following completion of
the transaction, which is subject to normal regulatory approvals,
the Bouanane partners will be Dana 50% and operator, Tethys
12.5%, Eastern 12.5% and ONHYM 25%.
Tethys and Eastern currently hold a Reconnaissance Contract
with ONHYM in the Bouanane block which covers an area of 2,116
square kilometres in north-eastern Morocco, close to the Algerian
border. Using existing seismic data the partners have identified
a number of very attractive exploration prospects which are
analogous to known discoveries in Algeria. Dana plans to acquire
further onshore seismic during the first half of 2007 with a
target of drilling the most attractive prospect thereafter.
Given Dana's previous experience in Morocco in successfully
securing the NW Safi licence, it will lead negotiations with
ONHYM to agree the full Petroleum Agreement for the Exploration
and Exploitation of Hydrocarbons in the Bouanane block.
Commenting on the news, Tom Cross, Dana's Chief Executive, said:
"These two deals significantly enhance Dana's position in Morocco and make the Company one of the pre-eminent E&P players in the country. A strategic review of new ventures carried out during 2005 identified Morocco and Egypt as two key areas the Company would aim to enter, due to their stable and attractive fiscal regimes and significant hydrocarbon potential. Following the completion of these two deals, and other ongoing transactions, Dana will have interests in three permits in Morocco and two permits in Egypt, with significant work programmes during 2007. Dana is also actively pursuing additional licences, in these countries, and participating in bidding rounds to further build on this strong position."
For further information please contact:
| Tom Cross, Chief Executive | Dana Petroleum plc | 01224 652400 |
| Stuart Paton, Technical & Commercial Director | Dana Petroleum plc | 01224 652400 |
| Nick Elwes | College Hill Associates | 020 7457 2020 |
Notes to Editors
- In Morocco, Dana currently holds a 26.25% interest in the NW Safi Exploration Permit, offshore the Atlantic coast of Morocco. The contract covers a large area spanning 6,645 square kilometres with water depths ranging from 300 to 3,000 metres. An extensive seismic survey, acquired in Q2 2006, is currently being interpreted with drilling planned in late 2007 or 2008.
- In Egypt, Dana has entered into two agreements, both of which are subject to Egyptian government approval. Firstly, the Company has acquired in total a 50% interest in the West El Burullus area of the offshore Nile Delta region of Egypt from Gaz de France. A seismic survey is being undertaken in this area during Q4 2006. Secondly, the Company acquired a 20% interest in the South Feiran Concession, located in the Gulf of Suez, offshore Egypt, from CEPSA. A 3D seismic survey was acquired in early 2006, and exploration drilling is targeted for 2007.
