Dana’s new asset deal in Norway

Dana Petroleum, an independent oil and gas exploration and production company focused on growth through international exploration and the development of low risk production from the UK North Sea, announces a deal which delivers three additional exploration wells offshore Norway in partnership with Det norske oljeselskap ASA (‘Det norske’), the second-largest operating company on the Norwegian Continental Shelf.

Dana’s wholly owned subsidiary Dana Petroleum Norway AS has entered into swap arrangements with Det norske in respect of a number of assets on the Norwegian Continental Shelf. The agreements are subject to standard co-venturer and governmental approvals.

Under the deal, Dana will acquire from Det norske a 25% interest in PL450 and also 10% interests in both PL035B and PL362 in exchange for a 10% interest in PL027D.

Det norske is also farming into block PL027D under a separate transaction with another company. PL035B and PL362, which are operated by StatoilHydro, are situated to the east of the Frigg field in the Norwegian North Sea.

The large gas-condensate Fulla prospect is scheduled to be drilled on the border between these two licences in October 2008.

In PL450, which lies just west of the Ula field and is operated by Det norske, drilling is planned late 2009 or early 2010 with the likely target being the Storebjørn prospect. Drilling is also scheduled on PL027D, close to the producing Jotun oil field, where the Eitri oil prospect will be targeted in late 2008 or early 2009 using the Bredford Dolphin rig provided by Det norske.

As part of this transaction, Det norske has also committed to provide a second rig slot to drill a further structure on this block later in 2009. Dana will retain a 40% interest in PL027D for both exploration wells and continues to hold its 45% stake in the nearby Jotun oil field.