Energy Africa Farms Into Mauritanian Block 1

The board of Dana has reached an agreement with Energy Africa Mauritania Ltd. whereby Energy Africa will farm-in to earn a 32% interest in Block 1 offshore Mauritania.

Dana will remain as Operator for the enlarged group of participants in Block 1, with a 48% interest in the Production Sharing Contract, and is spearheading a new work program to accelerate exploration in this area. Attractive prospects have emerged from two successful 2D seismic surveys, and acquisition of a large 3D seismic program is now expected to begin before year-end. This should lead to the finalizing of drilling targets by mid 2003.

Energy Africa is Dana's neighbor in Block 2 and its team has a track record of finding oil in West Africa, so their participation should benefit the Block 1 group as Dana progresses the exploration program. The farm-in agreement is subject to the approval of the Government of Mauritania.

Participating interests in Block 1 following the farm-in will be: Dana as operator with a 48% stake; Energy Africa with 32%; Hardman Resources with 18%; Roc Oil with the remaining 2%.

As a result of Dana's strategic farm-outs to Woodside (Block 7) and now Energy Africa (Block 1), Dana has significantly reduced its exploration costs and risk, yet has still retained the majority of its upside with large interests in Blocks 1, 7 and 8 of 48%, 51.43% and 80% respectively.

Exploration offshore Mauritania is gathering pace, with Woodside's recent successful well appraising the Chinguetti oil field and further wells planned this year in Block 4 and Block 6. Dana now holds a very strong position in this emerging region and looks forward to reporting further developments on its Blocks 1,7 and 8 in due course.


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