Dana Petroleum is pleased to announce that first gas production has successfully commenced from the Babbage field, located in block 48/2a some 80 kilometres off the UK coast in the Southern North Sea, where Dana holds a 40% interest.
The Babbage field development was approved by the UK authorities in 2009 and is being executed in two phases. The total investment in the development of the Babbage field will amount to around £300m.
Phase one has included the installation of the Babbage platform in September 2009, the drilling of three production wells and the laying of a 28km pipeline to connect the field to existing UK gas infrastructure. Two further wells are planned for phase two in 2011. Following the completion of phase two, Babbage is expected to produce at rates of up to 70 million cubic feet of gas per day which is approximately 12,000 barrels of oil equivalent per day (“boepd”), thus yielding up to 4,800 boepd net to Dana.
Babbage is expected to produce more than 5 billion cubic metres (176.6 billion cubic feet) of natural gas, with a field life of 20 years.
Additional potential for future production exists in the south-east of the Babbage accumulation. Consideration will be given to developing this area following analysis of production data from the phase one and phase two wells, which are focused on the north-west area of the Babbage field.
Commenting on the news, Tom Cross, Dana’s Chief Executive said:
“The start of production at Babbage adds further value to the Dana Group and achieves another of Dana’s key targets for 2010. The Group now produces oil and gas from a total of 37 fields and expects to very shortly complete the acquisition of Petro Canada Netherlands B.V, which significantly increases Dana’s operating capability and production base in the North Sea.
In addition, Dana is delivering further value by driving forward its operated developments at the Western Isles oil fields and the Arran gas fields, in the UK North Sea.”
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 37 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 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. This deal is Dana's largest acquisition to date, providing the Company 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 37 currently.
This 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 also 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 this month and, together with the Babbage development, should increase Dana's daily production capacity to around 50,000 boepd.