Dana Petroleum doubles Cavendish gas field stake

Nov. 29, 2006
Dana Petroleum PLC agreed to acquire from Gaz de France a 25% additional interest in Cavendish gas field in the UK North Sea's Southern Gas basin.

By OGJ editors
HOUSTON, Nov. 29 -- Dana Petroleum PLC agreed to acquire from Gaz de France a 25% additional interest in Cavendish gas field in the UK North Sea's Southern Gas basin. The $55 million transaction will double Dana's existing 25% interest in the field.

Production from Cavendish field, scheduled to begin in first quarter 2007, is expected to flow initially at 100 MMcfd and to continue until 2016. Dana said its pending transaction remains subject to government and third-party approvals.

Dana estimates that the additional 25% interest will add 29 bcf of North Sea proven and probable gas reserves and a production gain of 17 MMscfd. After closing, Dana's overall production from its total stake in Cavendish is expected to be 34 MMscfd.

Cavendish field lies in 18.5 m of water on Block 43/19a, about 140 km northeast of Easington on the Lincolnshire coast and 180 km north of Bacton on the Norfolk coast.

Development involves three production wells and a minimum facilities platform tied back to ConocoPhillips (UK) Ltd.'s Caister Murdoch System (OGJ, Aug. 24, 2005, Newsletter).

The platform was installed in June (OGJ Online, Sept. 1, 2006).

Plans call for gas to be exported from Murdoch through the Caister Murdoch System trunk pipeline to the Theddlethorpe gas terminal in Lincolnshire, where it will be sold into the UK gas market.