Dana Completes Acquisition of Johnston Field Stake

Dana has completed the North Sea asset deal agreed with Caledonia EU Limited in November 2004. As a result, Dana has now acquired a 27.78% interest in the producing Johnston gas field and associated UK North Sea Blocks 43/27a and 43/26a.

Gas production from the Johnston field is currently flowing at 54 million standard cubic feet per day. This acquisition therefore increases Dana's net North Sea gas production by 15 million cubic feet per day, equivalent to approximately 2,600 barrels of oil per day. Dana's production from the Johnston field should be further boosted in August this year when completion of the ongoing Johnston Field Extension Project is expected to significantly increase overall field production rates to approximately 90 million cubic feet per day, yielding some 25 million cubic feet per day or the equivalent of around 4,300 barrels of oil per day net to Dana's stake.

Completion of the Johnston acquisition is the first of three near-term events which will add to Dana's portfolio of UK oil and gas production. The other two are the completion of the acquisition of an additional 28% interest in the Hudson oil field, taking Dana's stake up to 47.5%, and the start of oil production from the Gadwall oil field in which Dana holds a 50% interest.

Following these three transactions, Dana will be producing from eleven oil and gas fields in total, ten of which are located in the UK North Sea.