Dana agrees to buy UK North Sea interests

Dana Petroleum PLC, Aberdeen, agreed to buy oil and gas interests off the UK from Petro-Canada UK Ltd. for $372 million, subject to adjustments.

Sept. 8, 2010

By OGJ editors
HOUSTON, Sept. 8 -- Dana Petroleum PLC, Aberdeen, agreed to buy oil and gas interests off the UK from Petro-Canada UK Ltd. for $372 million, subject to adjustments.

The sale is part of a divestment program of Suncor Energy Inc., of which Petro-Canada is a wholly owned subsidiary.

The interests are in 12 production and exploration licenses in the North Sea, with average production this year of about 16,000 boe/d net to Suncor.

The interests are in the Triton oil producing area in the central North Sea, including Petro-Canada’s 33.11% stake in the Triton floating production, storage, and offloading vessel operated by Hess; the Scott-Telford producing area in the Outer Moray Firth area; and the Inner Moray Firth exploration area.

Dana estimates it will acquire 33.5 million boe proved and probable reserves in the deal.

Separately, Dana is resisting a cash takeover bid begun last month by Korea National Oil Corp. (OGJ, Aug. 30, 2010, Newsletter).