Dana Petroleum has reported its interim results for the first half of 2008.
Record Levels of Production, Profits and Cashflow
- Record first half production of 43,147 boepd up 67%.
- Turnover increased by 188% to a record high of £314.5 million.
- Record Pre-tax Profit of £133.1 million up 138%, leading to Earnings Per Share of 69.95p.
- More than threefold growth in cashflow from operations to a new high of £193.9 million.
- Net debt further reduced to £9.0 million, lowering gearing to below 2%.
Highly Successful Exploration Program
- 7 wells drilled to date in 2008, yielding 4 new discoveries in North Sea and Egypt.
- West and East Rinnes fields proved good quality sands and oil flow rates of 7,800 barrels per day. Rigs now contracted to drill the South-East and South-West Rinnes structures.
- First well on West El Burullus, offshore Nile delta, discovered gas with flow rates up to 27 million cubic feet per day. Rig contracted for 3 further wells in this PSC.
- Exciting 3 well Gulf of Suez drilling program about to commence. Akhenaton-1 well is first to drill, on the South October PSC.
- Drilling site in preparation onshore Morocco at Bouanane, plan to spud by end of year.
- Norway drilling on Fulla target expected fourth quarter 2008.
- Total of 17 wells to be drilled during 2008 with all rigs contracted.
- Development Program on Schedule - Ensuring Further New Production Growth.
- East Zeit oil production more than doubled through successful new drilling and workovers.
- Grouse oil field in Greater Kittiwake Area, first oil scheduled for early 2009.
- Babbage gas field in UK Southern North Sea, first gas anticipated Q1 2010.
- E18 gas field in Dutch North Sea, first production scheduled for Q3 2009.
- Group production for 2008 on target to average between 40,000 and 45,000 boepd, representing more than a 30% growth over 2007.
- 10 wells scheduled for second half of 2008.
- Total of up to 20 wells expected to be drilled during 2009.
- Awaiting results of extensive applications made in the UK 25th Licensing Round.
- Evaluating licence applications for Norwegian APA and 20th Licensing rounds.
- New production and exploration opportunities being actively pursued.
- Company’s un-hedged position maximizes the benefits from continued commodity price strength.
Tom Cross, Chief Executive of Dana, commented, "Dana's excellent operational performance in the first six months of 2008 has delivered major increases in oil and gas production, profits and cashflow which have all surged to new record highs. The Group is now producing from 30 oil and gas fields and undertaking three new field developments, which will come onstream from 2009. In addition, the Company is working on a further 21 appraisal and potential development projects.
"2008 is the most active year of exploration in Dana's history. A total of 17 wells are scheduled, focused on the UK, Norway and Egypt. Already this year there have been significant new oil discoveries at West Rinnes and East Rinnes in the UK and an important gas discovery at West El Burullus offshore Egypt. Rigs have now been secured to drill a number of additional targets in these particular areas and overall 10 wells are planned in the second half of 2008.
"The Company is in a very strong financial position, significantly benefiting from high commodity prices and our un-hedged position. With a high quality and balanced portfolio of growth opportunities and an exciting drilling program ahead, we have every reason to look forward to the future with confidence."