SUCCESSFUL APPRAISAL OF THE BLACKBIRD OIL FIELD

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Dana Petroleum is pleased to announce the successful appraisal of the Blackbird oil field in the UK Central North Sea.

The 20/2a-9 well, operated by Nexen, was drilled in a water depth of approximately 367 feet to a total measured depth of 12,000 feet, targeting a high quality Upper Jurassic oil discovery. The well encountered approximately 330 vertical feet of gross oil bearing section and an extensive set of wireline log data is being acquired over the reservoir section, following drilling and coring. Preliminary log analysis indicates approximately 75 feet total thickness of good quality oil bearing reservoir sands. 

The logs and cores are in the process of being fully analysed. It is planned that the well will next be completed and flow tested. It will then be suspended for future use as an oil producer, through a potential future tie back to the Ettrick FPSO.

Background to Blackbird Appraisal Drilling

When Dana acquired Bow Valley Energy in April 2009, Dana’s technical team identified a number of upside opportunities beyond the initial four producing oil fields.

In August 2009 a fifth oil field, Ettrick, was successfully brought on stream through an FPSO development and has been producing at rates of up to 22,000 barrels of oil per day.

The Ettrick joint-venture group has now proceeded to appraise the Blackbird oil discovery successfully, within the same licence area as Ettrick. The appraisal well has encountered a substantial oil column at Blackbird which has proven up additional oil reserves that are expected to be produced efficiently across the existing Ettrick facilities in due course.

Commenting on the news, Tom Cross, Dana’s Chief Executive said:

“In the first half of 2010, Dana drilled 10 exploration wells making  five oil and gas discoveries. In the second half of 2010, Dana’s intensive drilling programme includes a further 10 exploration and appraisal wells, targeting additional oil and gas reserves in proven hydrocarbon basins. Blackbird is the first of these wells and the next three are already drilling in the UK, Netherlands and Egypt.  In addition to this current drilling, Dana’s two largest 2010 targets at Anne Marie in the Faroes and Cormoran in Mauritania will spud in July and September respectively.

 

 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.

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