Dana Petroleum: Babbage Gas Field Development Approved

Dana Petroleum has approved the development of the Babbage gas field (Dana 40%) in the UK Southern North Sea. Dana's co-venturers, Eon Ruhrgas (47% and operator) and Centrica Resources (13%) have also approved the project, which remains subject to formal Secretary of State approval.

The field will be developed using 3 wells initially, with the option to drill a further 2 wells after first gas, across a newly built platform. The gas will be transported to West Sole and onwards to the Dimlington terminal on Humberside. First gas is planned for early 2010.

Dana has also recently approved two further new field developments. Firstly, the Grouse oil field (Dana 50%) in the Greater Kittiwake Area of the UK Central North Sea, where first oil is planned for early 2009, and secondly, the E18-A gas field (Dana 5.228%) in the Dutch Southern North Sea, where first gas is scheduled for late 2009.

Tom Cross, Dana's Chief Executive, commented, "Dana currently produces from 30 oil and gas fields across the North Sea and Egypt and is on target for production growth of more than 30% in 2008. These three North Sea developments supplement Dana's production growth from 2009 onwards.

"The Babbage field is one of the largest undeveloped gas accumulations in the UK and Dana's partnership with two of Europe's major gas utility companies highlights the quality embedded within our development portfolio.

"In addition, Dana is operating the Barbara/Phyllis joint development initiative in the UK Central North Sea, which is another large gas development, currently at the pre-sanction phase. Therefore, in addition to our recent oil discovery at West Rinnes and extensive ongoing exploration drilling programme, Dana is delivering a stream of new oil and gas developments."