Dana Petroleum is pleased to announce that it has signed an agreement with BG International Limited (“BG”) to acquire a 50% interest in the El Manzala Offshore Area Concession, located in the Mediterranean Sea, offshore Egypt. The deal is subject to normal regulatory approvals.
The El Manzala Offshore Area Concession is a large PSC area, covering some 630 sq km, situated in the prolific offshore Nile Delta area of Egypt. The area already has significant coverage of both 2D and 3D seismic data. Dana will fund the cost of the next exploration well up to an agreed cap in order to earn the 50% interest. Dana has assessed that this area is prospective in both the Pliocene play, analogous to Dana’s two gas discoveries in the West El Burulus concession (WEB-1 and Papyrus), as well as having further prospectivity in the deeper high pressure horizons.
This deal continues Dana’s programme to grow its business in Egypt and the offshore Nile Delta in particular, which provides world-class upside opportunities for near-term drilling and development.
Commenting on the news, Tom Cross, Dana’s Chief Executive, said:
“We look forward to working with BG, 50/50 in this large concession in the eastern part of the Nile Delta, with a plan to drill in early 2011. This further extends Dana’s strategic position and growth opportunities across Egypt, where we are already 50/50 partners with Gaz de France in the western area of the Nile Delta, together having made two gas discoveries with our first two wells at WEB-1 and Papyrus. Dana is also 50/50 partners with Apache in the Western Desert where the group has made, and successfully brought onstream, several oil discoveries.
In addition, Dana is currently drilling at Fin, close to our recent Lorcan oil discovery onshore in the Gulf of Suez (Dana 100%) and also at Nefertiti, offshore Gulf of Suez (Dana 65%).”
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:
Dana Petroleum plc is a leading independent oil and gas, exploration and production company listed on the London Stock Exchange (symbol: DNX), and is a constituent of the FTSE 250 Index.
The Group currently produces from 36 oil and gas fields across four countries (UK, Netherlands, Norway & Egypt) and holds more than 100 interests in exploration and production licences spanning nine countries. Dana’s activities are focused within its two core areas of Europe (North Sea) and Africa (North & West).
In Africa, Dana has production, development and exploration interests across Egypt, oil and gas discoveries offshore Mauritania and Morocco, and additional exploration opportunities offshore Senegal and Guinea.
In Europe, Dana’s producing interests are focused on oil and gas in the UK North Sea, oil offshore Norway and gas offshore The Netherlands. Dana also has significant development and exploration opportunities across the North Sea, including development of the Babbage gas field which is due on-stream in August 2010, the Arran gas fields (formerly known as Barbara/Phyllis) and the Western Isles oil fields.
In addition, on 14th June 2010 Dana entered into an agreement to acquire the entire issued share capital of Petro Canada Netherlands BV. The acquisition represents the Company’s largest acquisition to date, providing Dana with a significant growth step and a complementary asset base in the North Sea, bringing Dana’s total number of producing fields to 54 from 36 currently. The acquisition will provide Dana with an additional 31 million barrels of oil equivalent (“mmboe”) of proved and probable reserves and 51 mmboe of proved, probable and possible reserves at 31 December 2009, and unrisked prospective resources of up to a further 67 mmboe across the Petro Canada Netherlands portfolio (20 mmboe on a risked basis). Petro Canada Netherlands’ net production this year, to end April 2010, averaged 12,136 boepd. The acquisition is expected to complete in 3Q 2010 and should increase Dana's daily production to around 50,000 boepd. In addition, Petro Canada Netherlands is currently drilling the L06-08 exploration prospect.