Dana Buys Equity in Two Blocks in Danish and German Waters

Dana Petroleum has acquired equity in two licences in the Danish and German sectors of the Southern North Sea.

Dana will acquire 40 per cent equity and operatorship of the Danish 12/06 licence and 56 per cent equity and an option for operatorship of the German B20008-73 licence from PA Resources (PAR) UK Ltd. The total value of the deal is approximately $44 million including future contingent payments. This transaction is subject to the necessary government and partner approvals. Based on the equities Dana is acquiring up to 32 MMboe of contingent and prospective risked resources.

Both licences are located near existing Dana operated licences in the Netherlands; the F02a producing licence containing the Hanze oil field and Pliocene (shallow) gas field and the F06 exploration licence comprising the Zulu, Snellius and Huygens-east prospects.

Dana’s Netherlands Managing Director Nick Dancer said: “These licences are a great strategic fit for Dana giving us access to resources close to our existing licences and infrastructure. It will also allow us to fully exploit the wealth of talent and experience we have in the Netherlands team as we grow and develop our European operations. We look forward to working with PA Resources and the partnership to appraise the discoveries with a view to bringing them to development.”

Graham Scotton, Dana’s acting Chief Executive said: “Dana’s strategy is to significantly grow our production. This acquisition gives us the ability to do that by building a new Central European hub based on having operations in the Netherlands, Denmark and Germany.”

PA Resources President and CEO, Mark McAllister said: “PA has brought in on advantageous terms a highly competent and motivated operator to progress our operated discoveries through appraisal and potentially development. Dana has a long operating track record in the Netherlands where its nearest operated facility is the Hanze oil and gas field, only around 50km south of Licence 12/06. 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.”

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Press Release, December 16, 2013