Dana Begins Appraisal Drilling Program Offshore Indonesia

Dana Petroleum begun its appraisal drilling campaign in the Pangkah Production Sharing Contract area offshore Indonesia. Drilling operations on the first well in the program have commenced using Diamond Offshore's jackup, Ocean Sovereign.

Two wells will be drilled to test for the presence of a western extension of the Ujung Pangkah gas field. The wells are expected to add substantial new gas reserves to the current 'core area' reserves of 478 billion cubic feet. If successful, the wells will also be flow tested to provide additional production performance information ahead of finalizing the Ujung Pangkah development well locations. The opportunity may also be taken to test the productivity of the Ujung Pangkah oil rim, directly underlying the gas accumulation, where approximately 450 million barrels are mapped in place. Each well is expected to take around one month to complete, excluding any well testing operations.