Dana Petroleum plc 2013 Results
Dana announces 2013 results
Financial Performance 2013
- Investing in £1 billion Western Isles project in UK North Sea
- 2013 profit after tax of £105.13 million (£110.08 million in 2012)
- Revenues of £1 billion in 2013 (£1.09 billion in 2012)
- Net assets up by 3% to £1.37 billion in 2013 (£1.33 billion in 2012)
Business Performance 2013
- Production 46,891 boepd in 2013 (57,284 boepd 2012)
- US$1.5 billion credit facility secured to help fund the future growth of the company
- Significant progress made on Western Isles project
- New country entry to Germany and Denmark with acquisition of equity in two licences in £28 million deal
- Successful appraisal of the Tolmount discovery in the UK Southern North Sea and discoveries on the UK prospects, Liberator and Pharos.
Chief Executive’s comments
Graham Scotton, Acting Chief Executive commented: “Our revenues have stood up well in the face of production challenges. Going forward, we are focused on growing our production, building reserves and delivering the Western Isles project. We are investing around £600 million a year to achieve this and create a robust, high-performing business.”
Dana is continuing to make significant progress on the Western Isles project (Dana 77%, Cieco 23%).
This operated development in the UK Northern North Sea will see the installation of an FPSO (floating production, storage and offloading) vessel over the Harris and Barra fields. The FPSO is being constructed at the Cosco yard in Qidong, China.
The nine-well development is expected to initially produce more than 40,000 barrels of oil equivalent per day when it comes on-stream.
A series of notable project milestones were achieved during the year including:
- Keel laying on 26 May
- Successful installation of the gas export subsea isolation valve on the seabed on 26 July
- Completion of the first phase of the drilling programme on 23 October
- Successful launch of the FPSO hull on 19 December
Dana brought new wells into production in Egypt and was successful in the 2012 Egyptian General Petroleum Company (EGPC) bidding process. Dana was also given the go-ahead by the Egyptian Government to further develop the Nefertiti oil field in the Gulf of Suez following the successful completion of an appraisal well.
Dana is also participating in the Wintershall operated L6a-B(7) development in the Netherlands. This development, which is part of the core L5/L8 hub offshore Netherlands, is expected to see first gas in early 2015.
In December 2013, Dana acquired equity, subject to regulatory approval, in two licences in the Danish and German sectors of the Southern North Sea as part of its Central European hub strategy. The Danish acquisition was completed in May 2014 with the German one expected to follow.
The transaction with PA Resources (PAR) UK Ltd is worth approximately £28 million including contingent payments. Dana will acquire 40% equity and operatorship of the Danish 12/06 licence and 56% equity and an option for operatorship of the German B20008-73 licence. Both licences are located near existing Dana operated licences in the Netherlands.
In the UK, Dana has three potential field developments; Arran in the Central North Sea and Tolmount and Platypus, in the Southern North Sea.
The Tolmount discovery was made in 2011. In 2013 an appraisal well was successfully completed which increased the potential size of the field. Work is now progressing to seek UK government development sanction before the end of 2015 with first gas anticipated in late 2018. E.ON is the field operator with equity ownership being equally shared with Dana.
Dana’s goal is to grow production significantly over the long-term.
Overall production fell to 46,891 boepd in 2013 from 57,284 boepd in 2012. This reflects the challenges encountered during the year. These included the loss of a full year’s production from the Banff, Kyle and Enoch fields due to on-going shutdowns and extended operational shutdowns in the Greater Guillemot Area.
Exploration and appraisal
Dana is committed to drilling for new reserves and building a high-quality, balanced portfolio of prospects.
Dana drilled 14 exploration and appraisal wells in 2013. This resulted in successful appraisal of the Tolmount discovery in the UK Southern North Sea and discoveries on the UK prospects, Liberator and Pharos. Small discoveries were made on three wells in the East Beni Suef licence in Egypt and on the Witte de With and De Ruyter Western extension prospects in the Netherlands.
In Mauritania, the Fregate-1 well, part of a multi-well programme with Tullow, was spudded in August 2013. The results of this well continue to be evaluated.
Dana has also started shooting 2D seismic in Bakassi, Cameroon. Dana is the operator (55%), working in partnership with Madison Cameroon Oil and Gas Limited (35%) and SoftRock Oil and Gas Limited (10%).
Seismic acquisition commenced in January 2014 and is expected to be completed in July/August 2014. Preparatory planning work for the commitment exploration well has started. It is expected that this well will be drilled in late 2015 or early 2016.
For further information contact:
Director of Corporate Affairs and Business Support
+ 44 (0)1224 616100
Group Corporate Communications Manager
+ 44 (0)1224 616100
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