Dana Petroleum increases Barbara field stake

Dana Petroleum has completed the purchase from Amerada Hess of an additional 53% interest in the Barbara gas-condensate field and surrounding area for a cash consideration of $7.5 million.

Dana Petroleum has completed the purchase from Amerada Hess of an additional 53% interest in the Barbara gas-condensate field and surrounding area for a cash consideration of $7.5 million.

The added ownership in North Sea Blocks 23/11, 23/16c, 23/16d and 23/17a increases Dana's current 27% interest in this area to a total of 80%. Dana has also been approved by the DTI and partner ENI UK Ltd. as the operator of the relevant licenses.

Dana and its partners discovered the Barbara field in 2002 with the 23/16c-8 exploration well, which encountered a total of over 270 ft of excellent quality Forties sandstone reservoir, full to the base of the sand with rich gas-condensate. Barbara is located within tieback distance of both the Everest and ETAP production and export infrastructure systems thus providing future development options for the field.

Dana's current estimates of most-likely recoverable reserves from the Barbara field are around 120 bcf of gas and 4 MMbbl of associated hydrocarbon liquids. However, since a hydrocarbon-water contact was not encountered in the discovery well, there is the possibility of additional upside reserves in this area. As the new operator, Dana will focus its efforts on determining the optimum location for appraisal drilling, currently scheduled for 2005.

07-27-04

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