Offshore staff

ABERDEEN, UK -- Two North Sea exploration wells by Dana Petroleum, one each in the UK and Netherlands sectors, have made oil and gas discoveries.

In the UK northern North Sea, Dana's flow test at the East Causeway well 211/23d-17z had a stabilized combined flow rate of 14,500 b/d oil from the Ness and Tarbert formations.

Dana's initial test on the Tarbert sands flowed light, sweet, 32° API crude oil at stabilized rates of up to 7,000 b/d with a low oil-to-gas ratio. A second test, on the Ness formation, flowed at a stabilized rate of 7,500 b/d oil of similar quality to that in the first test. No water was produced during the tests from either zone.

Dana's East Causeway well intersected Brent sandstone intervals in the eastern fault block which had been drilled earlier by the suspended well 211/23b-11, and flowed at rates up to 8,100 b/d of oil. Flow rates and pressure data from all the reservoir tests will be analyzed to assess productivity and reserve potential.

In the Dutch North Sea, Dana has drilled and flow tested the E18-6 well. It encountered a reservoir interval in the Lower Slochteren sands which flowed at a rate of 45 MMscf/d of gas. The gas was similar to that in neighboring F16-E gas field. An appraisal well in a fault block further west is under consideration. If warranted, the area could be developed in a tieback to the F16-E platform.

Dana now is drilling an appraisal well on the Babbage gas field in the UK southern basin.

"We are highly encouraged by the test results from the East Causeway and E18-6 wells and look forward to accelerating our technical work on these areas to deliver potential new field development," says Tom Cross, Dana's chief executive.

8/15/06