Dana Boosts 2005 North Sea Drilling Program
Dana has signed an exchange agreement with CNR International (U.K.) Limited by which Dana will acquire a 24.2% interest in UK North Sea Block 211/22a, in exchange for a 5% interest in UK North Sea Block 211/8a and a small balancing cash consideration. Final completion of this transaction, which is subject to normal regulatory and partner approvals, is expected to take place in the near future, when Dana will also be appointed Operator.
The Company is further delighted to announce that it has agreed heads of terms with its future co-venturer in Block 211/22a, Antrim Resources, to increase Dana's interest to 79% in the northern and western areas of the block by drilling an exploration well to test the 'Clachnaben' prospect, just to the east of Shell's Cormorant oil field.
Dana intends to drill the Clachnaben well as part of its 2005 North Sea drilling campaign, increasing its total number of planned North Sea exploration and appraisal wells to six this year. This drilling programme commenced on 5th March 2005 with the spud of the Melville exploration well in nearby Block 210/ 24a.
Commenting on the news, Tom Cross, Dana's Chief Executive, said:
'These two deals position Dana with a significant stake in Block 211/22a,
consistent with our strategy to maximize the Company's drilling upside potential
in the North Sea. Exploration wells at Melville and Clachnaben will build upon
our other 2005 Northern North Sea activity. This includes the acquisition of
an increased interest in the Hudson oil field, which will boost Dana's
production from the end of March, and well recompletion work at the Otter field,
which we expect to add further oil production around mid-year.'
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Company: CNR International more info
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