snippets from dana´s report

Snippets from Dana´s "Preliminary Results for the Year Ended 31 December 2005" out today:



. . . Faucon gas discovery offshore Mauritania proved working petroleum system and provides impetus for further exploration of the region . . .

. . . Four of the 2006 exploration wells will target very large prospects offshore Mauritania and Kenya, each with company transforming potential . . .

. . . The 2005 drilling campaign delivered four successes from six wells, including the important Faucon gas discovery offshore Mauritania. . . .

. . . This includes four wells in the second half 2006 which will target very large prospects offshore Mauritania and Kenya, each of which has company transforming potential. . . .

. . . Dana’s 2005 exploration and appraisal drilling campaign delivered four successes from six wells. The most important of these was potentially the Faucon discovery made in Block 1 offshore Mauritania. Although the volume of gas encountered in this first well would not justify near term development on a stand alone basis, this discovery is significant, having demonstrated both that a working petroleum system exists in the vastly under-explored region of southern Mauritania and that sufficient reservoir sand is present to create the potential for major discoveries in this area. Faucon therefore provides enormous encouragement for the additional prospects already identified in Block 1 and also for the future exploration of Dana’s neighbouring licence interests including the St. Louis Block in Senegal which adjoins Block 1 to the south. . . .

. . . Important progress was also made towards future exploration drilling. Agreements have been executed to contract the Atwood Hunter drilling rig for two further wells offshore northern Mauritania in 3Q 2006. The first well will target the very large ‘Flamant’ prospect in Block 8, with the potential for gas in place exceeding 6 trillion cubic feet. The second well will look for additional hydrocarbons near to the Pelican gas discovery already made by Dana in Block 7. The final location of this latter well will be based on detailed interpretation of the additional 3D seismic data acquired up-dip and inshore of the Pelican gas discovery during 2005. . . .

. . . The Group is currently planning to drill 11 exploration and appraisal wells in 2006, 10 of which already have rigs contracted. Four of these wells, two offshore Mauritania and two offshore Kenya, will target very large prospects with company transforming potential. . . .

. . . Hydrocarbon fluid samples recovered from the well, together with an in-depth analysis of log data, currently suggest that Faucon has discovered a predominantly gas accumulation with gas in place volumes in the region of 200 billion cubic feet. . . .

. . . In 2005, Dana made good progress with the interpretation of the large 3D seismic surveys acquired in Block 7 (Dana 63.85%) and Block 8 (Dana 41.5%) offshore northern Mauritania with encouraging results. The Group has consequently elected to enter the second exploration period for Block 8 and agreements have been executed to contract the Atwood Hunter drilling rig to drill a well in each of these blocks in 3Q 2006. The first of these wells will test the very large ‘Flamant’ prospect in Block 8 which detailed seismic interpretation indicates has the potential for gas in place exceeding 6 trillion cubic feet. This will be followed by a further well in Block 7, which will utilise the additional 3D seismic data acquired up-dip and inshore of the Pelican gas discovery made by Dana with its first Block 7 well in late 2003.

Alongside this exploration activity, discussions have begun with companies able to assist Dana in establishing a route to commercialise the large volumes of gas being discovered offshore Mauritania, probably through a liquefied natural gas (‘LNG’) scheme. These plans will be reviewed and amended as necessary once the results of the aforementioned two exploration wells are known. . . .


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Interesting how enthusiastic you can characterise your findings. Again .. and again .. and again ..





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