Dana Anticipates 'Busy' Exploration Schedule
Dana Petroleum is pleased to provide an update on its exploration program and drilling activities.
On July 14, 2010, Dana announced its successful appraisal well at the Blackbird oil field in the UK Central North Sea. This well will be completed and flow tested shortly, and is the first of 10 exploration and appraisal wells Dana has scheduled for the second half of 2010.
In addition to Blackbird, Dana has now spudded a well targeting the Nefertiti oil prospect offshore the Gulf of Suez, Egypt. Nefertiti is in the South October concession and the reserves being targeted, based on 3D seismic mapping, are up to 40 million barrels of oil (Dana's stake is 65%).
Two additional targets are currently being drilled. These are the Tolmount gas prospect in the UK Southern North Sea (Dana 45% stake) and the Fin oil prospect in Egypt (Dana 100%). Fin is nearby to Dana's recent oil discovery at Lorcan (Dana 100%), which flowed at equipment restricted rates of up to 4,714 barrels of oil per day. Results from the Fin and Tolmount wells are expected during the next few weeks.
In addition, Petro Canada Netherlands BV, which, as announced on June 14, 2010, is being acquired by the Dana Group, is currently drilling the L06-08 exploration prospect offshore in the Dutch sector of the North Sea.
Additional Near-Term Drilling
Looking ahead to further exploration drilling over the next three months, Dana reported that the West Phoenix rig has been released from its recent well offshore Norway and will shortly be mobilizing for the Anne Marie well in the Faroe Islands. The well is expected to spud within the next two weeks. Dana holds a direct 25% interest in the Anne Marie prospect. In addition, Faroe Petroleum plc ("FP"), in which Dana is the largest shareholder with a 27.5% stake, has a 12.5% interest in Anne Marie. The Anne Marie well follows on from Dana's and FP's recent successes in the UK West of Shetland area, including the two significant discoveries at Tornado and Glenlivet made in the second half of 2009. Anne Marie is one of the largest prospects being drilled by Dana this year with a mapped reserves range of up to 300 million barrels of oil.
In addition, the Maersk Deliverer rig has departed from the Far East and is en route to Mauritania to drill the Cormoran prospect. Cormoran is the largest prospect in Dana's 2010 exploration campaign and is in Block 7, near to Dana's existing Pelican discovery. The well is expected to spud around September 1, 2010 and, based on 3D seismic mapping, Cormoran has a target reserves range of between 400 and 780 million barrels of oil equivalent.
Accelerating Drilling Targets through Seismic and CSEM Surveys across Key Exploration Areas
Good progress is being made offshore Morocco. Following the discovery of the Anchois gas field, with Dana's first well offshore Morocco in 2009, the joint-venture group, led by Repsol, has recently acquired 1,336 sq km of 3D seismic and has also acquired 3D controlled source electromagnetic surveys (CSEM). These new data sets cover the majority of the significant number of identified prospects and leads within the Tanger-Larache concession and will be used to rank the most attractive prospects for drilling in mid 2011. The 2011 exploration program currently comprises a firm exploration well plus a contingent exploration well and also a contingent drill stem test on the Anchois-1 well, which was suspended for future use following the 130 billion cubic feet gas discovery.
In West Africa, Dana is now strategically positioned offshore Guinea in a vast offshore PSC spanning over 24,000 sq km, following recent approval of Dana's entry to this highly prospective area through Presidential Decree. A large 3,500 sq km 3D seismic survey contract has been awarded to obtain detailed imaging of the multiple prospects which were identified from the existing 2D seismic data. This new 3D survey will commence this month, with processing expected to be completed by year-end allowing target selection for drilling in 2011.
Commenting on the news, Tom Cross, Dana's Chief Executive said, "Through the combined growth steps of developing our own discoveries and selected acquisitions, Dana will shortly be producing 50,000 barrels per day. The very strong cash generation we have built now allows our team to aggressively pursue developments such as Babbage, Arran and Western Isles as well as an intensive exploration program, as evidenced by the 20 well drilling campaign underway in 2010. This will be a record number of E&A wells drilled in a single year by the Dana Group. We look forward to the next few months, which will be the busiest exploration and development period in Dana's history."
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