DANA RECEIVES SHAREHOLDER APPROVAL FOR THE ACQUISITION OF PETRO-CANADA NETHERLANDS B.V.

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Dana is pleased to confirm that the resolution to approve the Company's proposed acquisition of Petro-Canada Netherlands B.V. (“Petro-Canada Netherlands”) (the “Acquisition”) put to shareholders at the General Meeting held today was passed unanimously.

Completion of the Acquisition, which provides a significant production and reserve growth step for the Group and adds considerable operating capabilities in the North Sea, is expected to take place later this week. Following completion, Dana’s daily production capacity should increase to approximately 50,000 barrels per day and Dana’s pro forma proved plus probable reserves (“2P”) will be approximately 254 million barrels of oil equivalent, based on the position as at 31 December 2009, as further detailed in the shareholder circular published on 21 July 2010 (the “Circular”).

Consideration for the Acquisition will be drawn from the Company’s new $900 million bank facilities, with RBC being joined by a further four banks who were also members of the syndicate that provided Dana’s previous facility. Further details of the new bank facilities are set out in the Circular.

Votes in favour of, and against, the resolution as well as the number of votes withheld and number of proxy appointments validly lodged were as follows:

  1.  
Resolution
  1. For*
Against
  1. Withheld**
  1. Proxies

To approve the proposed acquisition of Petro-Canada Netherlands B.V.

44,024,699 (99.88%)

53,343   (00.12%)

435,349

879

* Includes discretionary votes.

**A vote “Withheld" is not a vote in law and is not counted in the calculation of the proportion of votes "For" and "Against" a resolution.

Commenting on the result of the General Meeting, Tom Cross, Chief Executive Officer of Dana said:

“Today’s shareholder vote in favour of the Acquisition is a resounding confirmation of support for Dana’s ambitious growth strategy. This transaction represents Dana's fourth international acquisition in the past three years and is the most significant and exciting development in the Company's history. The acquisition builds upon our portfolio approach to the E&P business and provides a significant production and reserve growth step for the Group, whilst adding considerably to our operating capability in the North Sea. This significant transaction, along with the new bank facilities, puts Dana in a strong position to take advantage of its ongoing material developments as the Company enters a very intensive exploration and development period. We look forward to working with the Petro-Canada Netherlands team in The Hague to capitalise on the portfolio of opportunties and to drive the business forward."

The Circular includes, inter alia, a Competent Persons Report on the Petro-Canada Netherlands assets ("CPR"). The assumptions utilised by the Competent Person are set out therein. The CPR includes the following information in respect of Petro-Canada Netherlands:

 

  • As at 1 January 2010, being the economic effective date of the Proposed Acquisition, Petro-Canada Netherlands had net total 2P reserves of 31 mmboe;
  • The base case valuation of Petro-Canada Netherlands' 2P reserves as at 1 January 2010 is EUR348.2 million. In addition, the Alkmaar PGI storage facility is valued at EUR42.4 million as at 1 January 2010, resulting in a total CPR valuation for Petro-Canada Netherlands, on a 2P basis, of EUR390.6 million, as further described in the Circular;
  • Total net proved, probable and possible ("3P") reserves are 51 mmboe. The base case valuation of Petro-Canada Netherland's 3P reserves as at 1 January 2010 is EUR567.1 million, which, together with the Alkmaar PGI storage facility, results in a total CPR valuation for Petro-Canada Netherlands, on a 3P basis, of EUR609.5 million, as further described in the Circular;
  • Near term prospects represent 12.0 mmboe of net risked prospective resources, with additional net risked prospectivity of 7.8 mmboe. The aggregate best case valuation of Petro-Canada Netherlands' prospects, as at 1 January 2010, is EUR91.2 million, as further described in the Circular.

 

The Circular is available to view on the Company's website (danapetroleum.azurewebsites.net)

Copies of the resolution passed at the General Meeting have been submitted to the UK Listing Authority in accordance with the Listing Rules and will shortly be available to the public for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at: Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS (Tel: 020 7066 1000).

 

Enquiries:

Tom Cross, Chief Executive Dana Petroleum plc 01224 652400
John Arnton, Legal Manager & Company Secretary Dana Petroleum plc 01224 652400

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