Dana Petroleum is pleased to provide an update on its exploration programme and drilling activities.
On 14 July 2010, Dana announced its successful appraisal well at the Blackbird oil field in the UK Central North Sea. This well will be completed and flow tested shortly, and is the first of 10 exploration and appraisal wells Dana has scheduled for the second half of 2010.
In addition to Blackbird, Dana has now spudded a well targeting the Nefertiti oil prospect offshore the Gulf of Suez, Egypt. Nefertiti is in the South October concession and the reserves being targeted, based on 3D seismic mapping, are up to 40 million barrels of oil (Dana's stake is 65%).
Two additional targets are currently being drilled. These are the Tolmount gas prospect in the UK Southern North Sea (Dana 45% stake) and the Fin oil prospect in Egypt (Dana 100%). Fin is nearby to Dana’s recent oil discovery at Lorcan (Dana 100%), which flowed at equipment restricted rates of up to 4,714 barrels of oil per day. Results from the Fin and Tolmount wells are expected during the next few weeks.
In addition, Petro Canada Netherlands BV, which, as announced on 14 June 2010, is being acquired by the Dana Group, is currently drilling the L06-08 exploration prospect offshore in the Dutch sector of the North Sea.
Additional Near-Term Drilling
Looking ahead to further exploration drilling over the next three months, Dana is pleased to report that the West Phoenix rig has been released from its recent well offshore Norway and will shortly be mobilising for the Anne Marie well in the Faroe Islands. The well is expected to spud within the next two weeks. Dana holds a direct 25% interest in the Anne Marie prospect. In addition, Faroe Petroleum plc ("FP"), in which Dana is the largest shareholder with a 27.5% stake, has a 12.5% interest in Anne Marie. The Anne Marie well follows on from Dana’s and FP's recent successes in the UK West of Shetland area, including the two significant discoveries at Tornado and Glenlivet made in the second half of 2009. Anne Marie is one of the largest prospects being drilled by Dana this year with a mapped reserves range of up to 300 million barrels of oil.
In addition, the Maersk Deliverer rig has departed from the Far East and is en route to Mauritania to drill the Cormoran prospect. Cormoran is the largest prospect in Dana’s 2010 exploration campaign and is in Block 7, near to Dana’s existing Pelican discovery. The well is expected to spud around 1 September 2010 and, based on 3D seismic mapping, Cormoran has a target reserves range of between 400 and 780 million barrels of oil equivalent.
Accelerating Drilling Targets through Seismic and CSEM Surveys across Key Exploration Areas
Good progress is being made offshore Morocco. Following the discovery of the Anchois gas field, with Dana's first well offshore Morocco in 2009, the joint-venture group, led by Repsol, has recently acquired 1,336 sq km of 3D seismic and has also acquired 3D controlled source electromagnetic surveys (CSEM). These new data sets cover the majority of the significant number of identified prospects and leads within the Tanger-Larache concession and will be used to rank the most attractive prospects for drilling in mid 2011. The 2011 exploration programme currently comprises a firm exploration well plus a contingent exploration well and also a contingent drill stem test on the Anchois-1 well, which was suspended for future use following the 130 billion cubic feet gas discovery.
In West Africa, Dana is now strategically positioned offshore Guinea in a vast offshore PSC spanning over 24,000 sq km, following recent approval of Dana’s entry to this highly prospective area through Presidential Decree. A large 3,500 sq km 3D seismic survey contract has been awarded to obtain detailed imaging of the multiple prospects which were identified from the existing 2D seismic data. This new 3D survey will commence this month, with processing expected to be completed by year-end allowing target selection for drilling in 2011.
Commenting on the news, Tom Cross, Dana’s Chief Executive said:
“Through the combined growth steps of developing our own discoveries and selected acquisitions, Dana will shortly be producing 50,000 barrels per day. The very strong cash generation we have built now allows our team to aggressively pursue developments such as Babbage, Arran and Western Isles as well as an intensive exploration programme, as evidenced by the 20 well drilling campaign underway in 2010. This will be a record number of E&A wells drilled in a single year by the Dana Group. We look forward to the next few months, which will be the busiest exploration and development period in Dana's history.”
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.