Dana: Record Average Production in 2006
Dana Petroleum PLC plans to announce its preliminary results for the year ending December 31, 2006, on April 30, 2007. Prior to entering the close period ahead of these results, Dana issued the following operational update and outlook.
--Record average oil and gas production of approximately 22,300 boepd delivered in 2006 --Production capacity increased strongly during 2006 to a new high of 30,000 boepd at year-end --Currently producing from 13 North Sea oil and gas fields --Agreed multi-asset deals with Gaz de France across the UK, Egypt, Mauritania and Norway --Net funds of approximately £110 million at end 2006 --Maximizing oil revenues by remaining completely un-hedged --Proven and probable reserves increased to 130 million barrels of oil equivalent at end 2006, representing a reserves replacement ratio of around 330% --Secured several new oil and gas license interests in Egypt and Morocco with major partners
--Exciting period ahead with rising production and extensive drilling program --Group production for 2007 expected to average between 31,000 and 34,000 boepd --On target to achieve production capacity of 40,000 boepd by the end of 2007 --New developments will lead to a producing portfolio of 15 fields in the North Sea by mid 2007, 16 fields on-stream in total --31 exploration and appraisal wells planned during next two years, targeting potential reserves of over one billion barrels of oil equivalent net to Dana --Awarded 16 new blocks by UK Government in 24th Offshore Licensing Round --Achieved strategic entry into Norway, with drilling already underway on first well
--Plan to invest around £140 million across existing fields and licenses in 2007
Chief Executive, Tom Cross commented:
"Dana delivered record production in 2006 and is on target for further growth in 2007 with new fields coming on-stream and a very active drilling and development program across existing properties.
"By mid 2007, the Company expects to be producing from 15 North Sea fields, providing a strong and balanced base of quality assets. Dana remains debt free and continues to be completely un-hedged with respect to oil price, thus maximizing the benefits from continuing commodity price strength.
"With a healthy financial position and a range of attractive opportunities, the
Company will continue its intensive drilling program throughout the next two
years, with up to 31 wells currently being planned."
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