re: dana petroleum statements What the heck, let's go for it,:) I've put some of the relevant stuff below.....
RNS Number:3806K
Dana Petroleum PLC
31 March 2005
DANA PETROLEUM PLC
("Dana", "the Company" or "the Group")
Preliminary Results for the Year Ended 31 December 2004
HIGHLIGHTS
* Proven and probable reserves increased to 124.8 mmboe at end 2004,
representing 51% of the Group's total technically recoverable hydrocarbon
resources of 243.7 mmboe.
Commercial Deals Continue to Strengthen Asset Portfolio
* Increased stake in strategically important Block 1 offshore Mauritania
ahead of 2005 high potential drilling and acquired new positions in Mauritanian
and Senegalese acreage surrounding Block 1
* Acquired extensive new exploration acreage across the Great Australian
Bight
* Valuable farm-outs of higher risk exploration areas (WA-226-P offshore
Western Australia, Block 8 offshore Mauritania and Blocks L5/L7 offshore Kenya)
completed ahead of major expenditure
Exploration, Appraisal and Development Programme Delivering Growth
* Major 3D seismic surveys completed across Block 7 and Block 8 offshore
Mauritania, 2D surveys completed offshore Senegal, Kenya and the Great
Australian Bight
* Commitments made to drill important exploration wells in Block 1
offshore Mauritania and Block L-5 offshore Kenya in 2005
Exciting Period of Activity Ahead
* A further seven exploration and appraisal wells planned in 2005,
including five wells in the North Sea and important deep-water wells offshore
Mauritania and Kenya, each with the potential to contain over one billion
barrels of oil in place
* Overall plans include a total of 17 exploration and appraisal wells by
end 2006, targeting 1.2 billion barrels of potential reserves net to Dana
* Dana's oil production is currently un-hedged and thus benefiting from
2005 oil price strength
* Further asset acquisitions and trades under negotiation
We are delighted to report that Dana's track record of year on year growth
continued in 2004. New highs in production and reserves were coupled with record
financial performance and the Company ending the year with gearing eliminated
and a significant net cash position.
During 2004 Dana met its objectives of rationalising and strengthening its asset
portfolio with an unprecedented level of commercial activity. In particular,
Dana pursued its strategy of exchanging part of its early exploration success
for cash generative North Sea production, trading into the Johnston and Hudson
fields and exiting Indonesia prior to the need for major development capital
spend. Dana also built its position in and around Block 1 in Mauritania and the
Barbara area of the North Sea ahead of important drilling events in 2005 and
gained significant new exploration positions in the North Sea and Australia.
Extensive technical progress was also made across the Group to firm
up an ambitious 2005/06 exploration and appraisal drilling programme, including
the acquisition of two large 3D seismic surveys offshore Mauritania.
Looking ahead, the Group is currently planning to drill a further 17 exploration
and appraisal wells by the end of 2006 in addition to the recently completed
Melville well which made an oil discovery. Two of the most important of these
wells are planned to be drilled in 2005, one offshore Mauritania, in Block 1,
and one offshore Kenya, in Block L5, each of which has the potential to contain
over one billion barrels of oil in place. Overall, Dana's 2005/06 drilling
campaign is targeting potential reserves of 1.2 billion barrels net to the
Company.
RESULTS
The Board has carefully considered the financing requirements for Dana's
intensive 2005 and 2006 exploration and development programme. The Directors
continue to believe that to maximise asset value per share the best use of the
Company's cash resources is to apply them to these projects, all of which have
the potential to yield exceptional returns. Therefore the Directors do not yet
recommend payment of a dividend, but will keep this under review as projects are
delivered.
.
OPERATIONAL HIGHLIGHTS
Production and Development
Alongside the Company's exit from Indonesia, Dana decided to monetise its
indirectly held interest in the Salym group of fields in Western Siberia through
a sale of its 10% shareholding in the Evikhon joint stock company for $28
million. Consequently, Dana's new field development activity is now entirely
based in the North Sea.
Exploration and Appraisal
Dana drove forward its exploration and appraisal programme in 2004, both by
pursuing the potential of its existing licences and by closing numerous
commercial deals. Overall, the Company delivered further drilling success and
created the framework for an exciting 2005-2006 drilling programme.
In the Southern Mauritania/Senegal region, Dana increased its stake in Block 1
and also reached agreement to add new interests in Block 2 to the north and the
Senegalese St. Louis Block to the south, where new 2D seismic data has recently
been acquired. These strategic steps have been taken ahead of drilling the
first well in Block 1 so that Dana can gain maximum benefit from any drilling
success. The first well in Block 1, to be drilled in the second half of 2005,
will target either the Faucon or Petrel prospects, each of which has the
potential to contain over one billion barrels of oil in place. The final choice
of drilling target will be made around mid 2005 once the results of an ongoing
seabed electromagnetic survey have been fully integrated with 3D seismic data.
Offshore Northern Mauritania, large 3D seismic surveys have been acquired in
Block 8 and Block 7 with the objective of providing the best possible data set
ahead of selecting final well locations for drilling in 2006. In Block 7, the
next well will be pursuing oil and gas believed to lie up-dip and inshore of
the Pelican discovery made at the end of 2003, which is now calculated to
contain up to one and a half trillion cubic feet of gas.
Offshore Kenya, an infill 2D seismic survey was obtained over the key leads in
Blocks L5 and L7 with the objective of finalising well locations for each of
these blocks. The first of these wells is planned in Block L5 for late 2005
with the potential for an immediate follow-on well in Block L7 if the results of
the first well are promising. As in Mauritania, these prospects are extremely
large with the potential to contain over one billion barrels of oil in place.
During 2004, Dana actively pursued its policy of farming out its higher risk
exploration areas ahead of major expenditure. Attractive 'free-carry' deals
were concluded with Wintershall, ahead of a 3D seismic survey in Block 8
offshore Mauritania, and with Voyager ahead of the Fiddich well offshore Western
Australia. Additionally, agreement was reached with Woodside to exchange an
interest in Blocks L5 and L7 offshore Kenya for a new interest in blocks EPP
28-31 in the Great Australian Bight, which will result in Dana's cost exposure
to the next two wells in Kenya being only one third of its 30% interest.
HDR
hardman resources limited
