Dana Increases Stake in Barbara Field in North Sea

Dana has completed the purchase from Amerada Hess Limited of an additional 53% interest in the Barbara gas-condensate field and surrounding area for a cash consideration of US$7.5 million. This acquisition of further interests in North Sea Blocks 23/11, 23/16c, 23/16d and 23/17a increases Dana's current 27% interest in this area to a total of 80%. Dana has also been approved by the DTI and partner ENI UK Limited as Operator of the relevant licenses.

Dana and its coventurers discovered the Barbara field in 2002 with the 23/16c-8 exploration well, which encountered a total of over 270 feet of excellent quality Forties sandstone reservoir, full to the base of the sand with rich gas-condensate. Barbara is located within tie-back distance of both the Everest and ETAP production and export infrastructure systems thus providing future development options for the field. Dana's current estimates of most-likely recoverable reserves from the Barbara field are around 120 billion cubic feet of gas and four million barrels of associated hydrocarbon liquids. However, since a hydrocarbon-water contact was not encountered in the discovery well, there is the possibility of additional upside reserves in this area. As the new Operator, Dana will therefore be focusing its efforts on determining the optimum location for appraisal drilling, currently scheduled for 2005.