Dana has signed an exchange agreement with CNR International (UK) Ltd. by which Dana will acquire a 24.2% interest in UK North Sea block 211/22a in exchange for a 5% interest in UK North Sea block 211/8a and a small balancing cash consideration. Final completion of this transaction, which is subject to normal regulatory and partner approvals, is expected to take place in the near future, when Dana will also be appointed operator.
The company also has agreed heads of terms with its future co-venturer in block 211/22a, Antrim Resources, to increase Dana's interest to 79% in the northern and western areas of the block by drilling an exploration well to test the Clachnaben prospect, just to the east of Shell's Cormorant oil field.
Dana intends to drill the Clachnaben well as part of its 2005 North Sea drilling campaign, increasing its total number of planned North Sea exploration and appraisal wells to six this year. This drilling program started on March 5 with the spud of the Melville exploration well in nearby block 210/24a.