Dana Begins Drilling & Seismic Ops Off Australia & Kenya

Dana is pleased to report that the Fiddich-1 exploration well has spudded offshore Western Australia, and that pre-drilling seismic acquisition has begun offshore northern Kenya. The Fiddich well is being drilled in exploration permit WA-226-P by the Sedco 703 semi-submersible to test a Permian sandstone prospect with the potential to contain up to 240 million barrels of oil in place. The license operator, Origin Energy, has estimated mid-case reserves potential of the Fiddich prospect to be approximately 60 million barrels of oil (12 million barrels net to Dana) with an upside case of around 100 million barrels (20 million barrels net to Dana).

Dana is being free-carried on costs relating to the Fiddich well in accordance with the terms of the 3-for-1 farm-out deal agreed with Voyager Energy in February 2004. Under this agreement, Voyager is paying the costs associated with Dana's remaining 20% interest in the Permit to earn a 10% interest.

Offshore Kenya, the "Polar Duke" seismic survey vessel has commenced acquisition of a 3,600 km infill 2D seismic survey in Blocks L-5 and L-7. This survey will build upon and refine the 2003 survey data over the key prospects to allow exploration well locations to be selected for drilling, currently targeted towards the end of 2005. Dana is being free-carried on one half of the costs relating to its 40% interest in Blocks L-5 and L-7 in accordance with the terms of the 2-for-1 farm-out agreement signed in 2003 with Woodside Energy.