Dana acquires equity in two North Sea licenses

Dana Petroleum PLC’s wholly owned subsidiaries will purchase equity in two licenses in the Danish and German sectors of the southern North Sea from PA Resources UK Ltd. for $44 million.

Dana will receive 40% equity and operatorship of the Danish 12/06 license and 56% equity and an option for operatorship of the German B20008-73 license, while PA will retain 24% interest in license 12/06 and 34% interest in license B20008/73.

License 12/06 includes two operated discoveries made by PA Resources in 2011: the Broder Tuck gas-condensate find, on which development feasibility studies are ongoing, and the Lille John oil discovery, on which an appraisal well is planned to be drilled in 2014.

The licenses, which hold up to 32 million boe of contingent and prospective risked resources, are near existing Dana operated licenses in the Netherlands: the F02a producing license containing the Hanze oil field and Pliocene (shallow) gas field and the F06 exploration license comprising the Zulu, Snellius, and Huygens-east prospects.

Dana in October started production from an infill well in Hanze at a rate of 3,500 b/d (OGJ Online, Oct. 8, 2013).

Dana will assume operatorship following completion in license 12/06 and before exploration drilling in license B20008/73.

“These licenses are a great strategic fit for Dana, giving us access to resources close to our existing licenses and infrastructure,” said Nick Dancer, Dana’s Netherlands managing director.

Mark McAllister, PA Resources president and chief executive officer, said, “Following our earlier announced Tunisian transaction with Enquest, this transaction represents delivery by PA of the second significant divestment which was signaled in Q1 and with the Congo farmout, the third important transaction this year.

“There are many geological similarities and operating synergies between Dana's north Netherlands position and PA's Danish and German assets and we look forward to working closely with Dana and our co-venturers to progress the exploration, appraisal, and development of these assets,” McAllister continued.

Dana said its ambition is to become a leading international oil and gas company operating in Europe, Africa, and the Middle East, growing production by investing up to $5 billion over the next 5 years to increase the size of the company and create value for its shareholder.

Dana in 2010 achieved operating capability in the Netherlands by acquiring Petro-Canada Netherlands BV (OGJ Online, June 14, 2010).

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