I believe someone has put this comment from the Herald onto the thread. If so, please accept my 'umble apologies....I'm not as young as I'd like to be....
BUSINESS - IN THIS SECTION PREV / NEXT ITEM
African deal pushes up Dana stock by 3.5%
MARK WILLIAMSON July 22 2004
Shares in Dana Petroleum rose 3.5% on news the oil and gas independent had agreed a deal to substantially reduce the costs of its exploration programme offshore Mauritania in west Africa.
Aberdeen-based Dana has agreed a farm-in deal under which Wintershall of Germany will pay all the costs of initial exploration on the giant block 8 off Mauritania in exchange for a 38.5% in any resulting producing development.
The deal will mean Dana will give up some of the potential upside from the area but will be spared the expense of acquiring three-dimensional seismic survey data for a block covering 1800 square kilometres.
While Dana had identified some large prospects using two-dimensional seismic surveys, Andy Bostock, technical director, said the geology of the block would make exploring it harder and riskier than Dana's other exploration interests in Mauritania.
If the three-dimensional seismic identifies prospects worth drilling Dana would expect to negotiate another deal to share any related costs.
Following the farm-in deal, Dana will have a 41.5% interest in block 8, while Hardman Resources will have 18% and Roc Oil 2%.
Separately, Dana said Woodside, the Australian oil and gas firm, had exercised its option to take a 10% interest in block 7 offshore Mauritania, where Dana made the Pelican gas discovery.
Woodside got the stake in return for acting as drilling services contractor on the Pelican-1 well on the block, in which Dana will have a 68.85% interest following the deal.
Richard Slape, an analyst at Seymour Pierce, said Dana appeared to have agreed the block 8 farm-in on favourable terms.
Shares in Dana closed up 10.5p at 315p in London dealing yesterday.
Shares in Dana Petroleum rose 3.5% on news the oil and gas independent had agreed a deal to substantially reduce the costs of its exploration programme offshore Mauritania in west Africa.
Aberdeen-based Dana has agreed a farm-in deal under which Wintershall of Germany will pay all the costs of initial exploration on the giant block 8 off Mauritania in exchange for a 38.5% in any resulting producing development.
The deal will mean Dana will give up some of the potential upside from the area but will be spared the expense of acquiring three-dimensional seismic survey data for a block covering 1800 square kilometres.
While Dana had identified some large prospects using two-dimensional seismic surveys, Andy Bostock, technical director, said the geology of the block would make exploring it harder and riskier than Dana's other exploration interests in Mauritania.
If the three-dimensional seismic identifies prospects worth drilling Dana would expect to negotiate another deal to share any related costs.
Following the farm-in deal, Dana will have a 41.5% interest in block 8, while Hardman Resources will have 18% and Roc Oil 2%.
Separately, Dana said Woodside, the Australian oil and gas firm, had exercised its option to take a 10% interest in block 7 offshore Mauritania, where Dana made the Pelican gas discovery.
Woodside got the stake in return for acting as drilling services contractor on the Pelican-1 well on the block, in which Dana will have a 68.85% interest following the deal.
Richard Slape, an analyst at Seymour Pierce, said Dana appeared to have agreed the block 8 farm-in on favourable terms.
Shares in Dana closed up 10.5p at 315p in London dealing yesterday.
Shares in Dana Petroleum rose 3.5% on news the oil and gas independent had agreed a deal to substantially reduce the costs of its exploration programme offshore Mauritania in west Africa.
Aberdeen-based Dana has agreed a farm-in deal under which Wintershall of Germany will pay all the costs of initial exploration on the giant block 8 off Mauritania in exchange for a 38.5% in any resulting producing development.
The deal will mean Dana will give up some of the potential upside from the area but will be spared the expense of acquiring three-dimensional seismic survey data for a block covering 1800 square kilometres.
While Dana had identified some large prospects using two-dimensional seismic surveys, Andy Bostock, technical director, said the geology of the block would make exploring it harder and riskier than Dana's other exploration interests in Mauritania.
If the three-dimensional seismic identifies prospects worth drilling Dana would expect to negotiate another deal to share any related costs.
Following the farm-in deal, Dana will have a 41.5% interest in block 8, while Hardman Resources will have 18% and Roc Oil 2%.
Separately, Dana said Woodside, the Australian oil and gas firm, had exercised its option to take a 10% interest in block 7 offshore Mauritania, where Dana made the Pelican gas discovery.
Woodside got the stake in return for acting as drilling services contractor on the Pelican-1 well on the block, in which Dana will have a 68.85% interest following the deal.
Richard Slape, an analyst at Seymour Pierce, said Dana appeared to have agreed the block 8 farm-in on favourable terms.
HDR
hardman resources limited
