Ettrick Field - North Sea
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Dana Petroleum, the independent oil and gas exploration and production company focused on growth through international exploration and the development of production in the North Sea and Egypt, reports its interim results for the first half of 2009.
Bow Valley Acquisition
- Successfully completed April 30, 2009
- Added interests in 5 UK fields and 9 exploration licenses
- Now fully integrated into the Dana group
- Turnover of £165.1 million
- Pre-tax profit of £21.9 million
- Successful syndication of new US $400 million bank facility
- Successful placing, raising £54 million net
- Net bank debt of £20 million and convertible debt of £117.7 million at period end
Significant Reserves Growth
- New discoveries added some 15-20 mmboe
- Over 11 mmboe added via acquisition
Successful and Extensive Exploration Program
- 12 wells drilled to date in 2009, yielding 6 new discoveries in North Sea, Morocco and Egypt
- South East Rinnes field proved good quality sands and oil
- Gas discovered at Anchois in Morocco and Fulla in Norway, follow on potential being assessed
- 2 further discoveries in the East Beni Suef concession, onshore Egypt
- 2 substantial 3D Seismic surveys completed or underway in mid-Norway and West of Shetland to identify future drilling potential in 2011 and beyond
- 5 key wells to be spudded in next 6 months at Tornado, UK West of Shetland, Jetta and Trolla in Norway and 2 wells (Papyrus and Bamboo) offshore Nile Delta, Egypt
- In total, 21 exploration wells (including 9 wells onshore Egypt) planned to be drilled during 2009 with all rigs contracted
- First half production of 38,999 boepd. Now producing from 35 oil and gas fields
- Constrained by water cut on East Zeit C2 well, low gas nominations in SNS fields and delayed start-up of Ettrick oil field production
- Ongoing workover programme in Egypt
- Ettrick production initially constrained by gas compression; phased build up to year-end now expected
- Group production for 2009 now estimated to be broadly flat on 2008, with a year-end exit range of 41,000-43,000 boepd anticipated
Development Program delivering Future Production
- E18 gas field brought on-stream in June and Ettrick oil field in August
- Babbage gas project progressing to schedule with first gas anticipated Q1 2010
- Subsurface and engineering work on host selection progressing on Barbara/Phyllis
- FPSO market survey, detailed subsurface work and scoping engineering work initiated on the Rinnes and Melville area discoveries, now to be renamed the 'Western Isles Development'
- Exciting near term exploration drilling opportunities
- Evaluating license applications for Norwegian APA 2009 and Egypt license rounds
- New production and exploration opportunities being actively pursued
- Company remains unhedged and therefore well placed to benefit from potential recovery in commodity price
Tom Cross, Chief Executive of Dana, commented, "The Dana group has made substantial progress in 2009, despite difficult macro economic conditions and low commodity prices. The Company has delivered a significant corporate acquisition and three material exploration discoveries already this year, together adding new oil and gas reserves of between 25 and 30 million barrels.
"Dana has also secured $400 million of new debt on attractive terms and is now very well positioned for both organic growth and further acquisitions.
"We are looking forward to an exciting drilling campaign over the next few months with a further 9 exploration wells scheduled before the end of the year."