Dana Trades Indonesian PSC Stake for UK North Sea Production

Dana Petroleum has reached agreement with Amerada Hess Limited to acquire an additional 28% interest in the Hudson Oil Field in the UK North Sea, thus increasing Dana's total stake in Hudson to 47.5%. In exchange, Dana will transfer its wholly owned subsidiary Dana Petroleum (Indonesia) LLC to Amerada Hess (Indonesia) Limited, along with a balancing cash consideration payable at completion. Dana Petroleum (Indonesia) LLC holds Dana's 12% interest in the Pangkah Production Sharing Contract ('PSC') offshore Indonesia as its sole asset.

On completion of the transaction, Dana's North Sea production is expected to rise by approximately 3,500 barrels of oil per day. At the effective date of 1st July 2004, Dana estimates the acquisition of approximately 5.6 million barrels of developed oil reserves in the Hudson Field will be offset by the divestment of approximately 10.0 million barrels equivalent of undeveloped gas reserves in Indonesia.

Final completion of the transaction, which is subject to normal regulatory and partner approvals, is expected to take place towards the end of 2004.

Commenting on the news, Tom Cross, Dana's Chief Executive, said:

'This transaction is in line with a key element of Dana's strategy, trading an undeveloped discovery in a non-core area for cash generative reserves in our core UK producing portfolio. For Dana, such a trade minimizes the time between discovery and production and eliminates the capital intensive development phase. This step is an efficient method of realizing the value of exploration success while continuing to grow the Company.'