Overview - United Kingdom
Paul Griffin – Managing Director
Since being established in 1994, Dana has built a solid business through organic growth and acquisitions, resulting in a broad portfolio of E&P opportunities generating strong free cash flow and potential future reserves growth.
Dana Petroleum has a large and exciting exploration portfolio with acreage in the four main hydrocarbon regions of the UK; the Southern Gas Basin, Central North Sea, Northern North Sea and the West of Shetlands.
Dana holds a total of 20 operated and 35 non-operated licences acquired through successful licensing rounds, acquisitions and asset farm-ins. Through careful portfolio management and rigorous technical review this has culminated over the past three years in Dana participating on average in six exploration and appraisal wells per year. This accounts for just under 10% of the total annual exploration and appraisal wells drilled in the UK, making Dana a key player in the E&A drilling sector of the North Sea.
Recent exploration highlights to note were the discovery of the Western Isles oil accumulations (formerly Rinnes), the Platypus gas discovery in the Southern North Sea and the Tornado hydrocarbon discovery, which was discovered with Dana’s first West of Shetland exploration well.
The Arran Development (Dana 21.64% Operator) located in the UKCS Central North Sea is currently due to be sanctioned in Q4 2011 with first production in 2014. The development comprises 3 subsea production wells tied back to nearby host infrastructure using a pipe-in-pipe pipeline system.
The Western Isles Development located in the UKCS Northern North Sea (Dana 76.92% Operator) is expected to be sanctioned before the end of 2011 with first production in Q4 2014. The development comprises up to 5 subsea production wells and 4 water injection wells tied back to a new build FPSO with surplus gas being exported via pipeline.
Overall, the production average for 2010 was 39,872 boepd on a working interest basis, slightly ahead of the previous year, with growth from the Bow Valley assets acquired in 2009 and new developments broadly offsetting natural field declines and price-related constraints on UK gas production.