Dana Completes Acquisition of Stake in Melville Area

Dana Petroleum has completed a deal to increase its interest in UK North Sea Block 210/24a to approximately 26.6%, through transactions with Shell and ExxonMobil. The key feature of this Block is the 'Melville' exploration prospect which will shortly be tested by the 210/ 24a-10 well, which is now scheduled to start drilling later this month.

The Melville well will test a Brent sandstone prospect with the potential to contain around 110 million barrels of oil-in-place on a most likely basis. The prospect is located just to the south of the 210/24a-8 well, which was production flow tested at 4,200 barrels per day of 36 degrees API oil in 1996, and some 6km to the south of the producing Hudson oil field through which a Melville discovery is likely to be developed.

Dana is also currently well advanced in the process of increasing its interest in the Hudson field, to 47.5%, through a previously announced agreement with Amerada Hess. This Hudson deal will increase Dana's net production by around 3,500 barrels of oil per day and the transaction is on track to be completed this quarter.