Dana Releases 2003 Preliminary Results

Dana Petroleum reports its preliminary results for 2003.


Strong Growth in Production

  • Average production more than doubled to 17,270 boepd (2002: 8,170 boepd)
  • Portfolio strengthened to 9 producing fields by year-end

  • Record Operating Performance

  • Turnover increased 124% to £86.5 million (2002: £38.6 million)
  • Operating Profit increased 266% to £34.1 million (2002: £9.3 million)
  • Net Profit up 188% to £19.6 million (2002: £6.8 million)
  • Earnings per share climbed to 26.5p (2002: 9.2p)
  • Net Cash Flow from Operations trebled to £52.2 million (2002: £16.4 million)
  • Gearing reduced to 6% (2002: 34%)

  • Successful Developments and Acquisitions, Increase in Reserves

  • Otter and Caledonia new field developments completed and brought onstream
  • Successful infill drilling at Banff and Claymore oil fields
  • Upper Salym field onstream and Shell JV agreed to $1 billion Salym area development
  • Acquired Kittiwake and Mallard oil fields, with Gadwall, Goosander, Grouse discoveries
  • Proven and probable reserves increased to 123.7 mmboe (2002: 116.0 mmboe)

  • Exploration Program Advanced, Significant Discovery offshore Mauritania

  • Pelican gas field discovered with first Mauritania well. Studies
  • indicate 1 Tcf of gas-in-place
  • Major geoscience project highlighted further drilling targets in Blocks 1 and 7 Mauritania
  • Secured valuable farm-outs to accelerate seismic and drilling offshore Kenya and Australia
  • Completed 2 new seismic acquisitions offshore Kenya and Western Australia
  • Awarded 9 new blocks around Dana's existing fields in UK 21st Licensing Round

  • Bright Outlook with Intense Period of Activity Ahead

  • Banff gas re-injection project approved for mid year start-up
  • Development sanction on track for 4 fields (Gadwall, Cavendish, F16-E, Ujung Pangkah)
  • Currently planning 10 exploration and appraisal wells, from a portfolio of 17 targets
  • Imminent spud of 2 appraisal wells at Ujung Pangkah, offshore Indonesia
  • Fiddich exploration well to drill in 2Q offshore Western Australia, with Dana free-carried
  • Further drilling in Mauritania (Block 1) and the North Sea scheduled later in 2004
  • Planned 2004 capital spend of £45 million (£31m on development, £14m on exploration)

  • Charles Smith CBE, Chairman of Dana, commented:

    '2003 was an excellent year for Dana with significant increases in production, reserves and bottom-line financial performance. The Company also drove forward its exploration program and made an exciting gas discovery with its first well offshore Mauritania. Early indications are that the Pelican field contains around one trillion cubic feet of gas-in-place.

    We are looking forward to an important year ahead, which should see the sanction of four new field developments and further exploration and appraisal drilling in the North Sea, Mauritania, Indonesia and Australia.

    Dana is in a strong position to deliver future growth with a sound financial base and a portfolio of attractive exploration and development opportunities.'