Dana Petroleum expanding into Algeria, Egypt

Nov. 9, 2005
A unit of Dana Petroleum PLC, Aberdeen, signed agreements with subsidiaries of Gaz de France to exchange various properties in a series of transactions in which Dana obtains interests in Algeria, the UK, and Egypt.

Doris LeBlond
OGJ Correspondent

PARIS, Nov. 9 -- A unit of Dana Petroleum PLC, Aberdeen, signed agreements with subsidiaries of Gaz de France to exchange various properties in a series of transactions in which Dana obtains interests in Algeria, the UK, and Egypt.

Dana agreed to pay $93 million to GDF for a 15% stake in Algeria's Blocks 352a and 353 in Sbaa basin. The transaction is subject to approval by Algerian authorities. GDF now operates the blocks with a 75% interest. Algeria's state-owned Sonatrach has 25% interest.

In addition, Dana plans to trade its interests in three blocks off Mauritania in exchange for GDF's interests in two UK North Sea fields and a stake in a PSC off Egypt. Regarding Mauritania, GDF is obtaining Dana's 24% interest in Block 1, 28% interest in Block 7, and 17.5% interest in Block 8.

Meanwhile in the UK, Dana is obtaining a 22% interest in Johnston gas field and associated UK North Sea Blocks 48/18b, 48/19b, and 48/19e. In addition, Dana is getting a 25% interest in Anglia gas field. Both fields are producing.

Upon closing, Dana will have 50% interest in Johnston field. GDF will retain 30% of Anglia.

Off Egypt, Dana is getting a 30% interest from GDF in the PSC for West El Burullus in the Nile Delta. GDF plans to retain 70% interest in West El Burullus.