Dana Petroleum Increases Overall Production

In the Banff field, the horizontal B5 well was drilled from the main subsea template to a depth of 8,726 feet encountering a 1,150 feet section of oil-bearing chalk reservoir within the Ekofisk and Tor formations. The well was completed as a producer and brought onstream in December 2002. Since this time, field production has increased from approximately 11,000 barrels of oil equivalent per day ('boepd') to around 22,000 boepd. Dana holds a 12.4% interest in the Banff Field.

The C76 well, in which Dana holds a 7.52% interest, was drilled from the Claymore platform to test the 'Drum' prospect. This technologically challenging well was drilled to a depth of 19,770 feet with a significant horizontal step-out of some 10,500 feet. The well encountered a total of 265 feet of oil-bearing sandstone within Cretaceous age sandstones. The well is now being completed as a producer and is expected to be brought onstream over the coming weeks.

First production of oil from the Caledonia field, in which Dana holds a 25.78% interest, commenced on 9th February 2003. The field is located in UKCS block 16/26 approximately 130 miles north east of Aberdeen. The development features a horizontal production well tied back to the Britannia platform via a 3.5 mile pipeline. Production from this well is expected to average around 10,000 barrels per day over the first year. Further development of the field will be considered over the next few years subject to the performance of the first well.

Dana's average production for 2002 was approximately 8,170 boepd, an increase of 41% over the 2001 figure of 5,777 boepd. Following the completion of the acquisition of a North Sea asset portfolio from Agip in October, and subsequent successful drilling, Group production has now grown to over 15,000 boepd. This represents an approximate trebling of production since mid-2002 and has resulted in over 90% of Dana's oil and gas revenues now being derived from the North Sea.

Tom Cross, Dana's Chief Executive, commented:

'Dana's continued production growth and drilling success in the North Sea demonstrates that a sound strategy delivered through technical rigor, commercial agility and local knowledge can realize very attractive investment returns from both exploration and development activity in the UK.'