Dana Petroleum Completes Kittiwake Field Acquisition

Dana has completed the acquisition from Shell U.K. Limited, Esso Exploration and Production UK Limited and Venture Production (North Sea Developments) Limited, of interests in the Kittiwake and Mallard oil fields, neighboring oil discoveries and exploration licences in the UK Central North Sea. This completion follows the announcement of the key principles of the transactions on April 29, 2003. With the recent award to Dana and Venture of four new adjacent blocks in the 21st Licencing Round, announced on 5th August 2003, this completion finalizes the creation of a new, commercially aligned, Dana/Venture 50/50 joint venture group covering the entire 'Greater Kittiwake Area'.

As part of the above completion process, Dana has sold its 50% interest in the shuttle tanker 'Norissia', acquired from Shell during the transaction, to Knutsen Boyelaster XI KS ('Knutsen'). An arrangement has subsequently been entered into between Venture, acting as operator on behalf of the joint venture, and Knutsen to lease the vessel as the principal storage and export system for the Greater Kittiwake Area.

With the addition of Kittiwake and Mallard, Dana's current daily production will increase by around 2,500 boepd to approximately 21,000 boepd. Average production for the second half of 2003 is now forecast to be around 18,000 boepd (1H 2003 16,081 boepd) and average production for calendar year 2003 is consequently forecast to be approximately 17,000 boepd.

Commenting on the news, Tom Cross, Dana's Chief Executive, said: 'Completion of this complex series of transactions is another valuable step for Dana, which now produces from nine oil and gas fields. We look forward to working with Venture to unlock the considerable development and exploration potential which remains in the Greater Kittiwake Area.

Dana is on course to achieve its stretch production targets for 2003, namely to double oil and gas production over that in 2002 and to exit the year producing more than 20,000 barrels per day.'