Expanding Dana also remains committed to North Sea

Energy:

Aberdeen-based oil and gas firm Dana Petroleum said yesterday it would be investing £ 136million in Egypt this year after success on two exploration wells.

The firm said the amount would be the most it has spent in the country in one year since moving into Egypt in 2007.

Dana also said it was still committed to North Sea expansion.

Paul Griffin, the firm’s Ukmanagingdirector, said it had added about 30 people into the Aberdeenbased operation since the start of the year, taking staff up to about 110.

The firm is gearing up to take over operatorship of the Triton floating production vessel subject to a deal agreed with Hess in February to increase its operatorship in the Bittern field to 33%. By the year-end it also hopes to get approval for its plans for its North Sea Western Isles development and Arran gas-condensate field.

Mr Griffin said this work, plus other exploration and appraisal projects, would see about £310million of Dana’s £620million 2012 spending invested in the North Sea – rising to £373million a year for a further five years after that. He added: “This year will see us taking part in six exploration wells, two operated, moving developments through to sanction as well as ongoing work.”

The two successful onshore wells in Egypt, Dana’s first as operator, saw flow rates of 3,600- 6,153 barrels of oil equivalent per day (boepd) and are being tied into an existing facility through jointventure partner Zeitco. Dana's managing director in Egypt, Nick Dancer, said the key to success in Egypt was to keep drilling more small projects and tying them in.

Dana employs about 55 in its Egyptian operation, plus staff in the Zeitco joint venture with the Egyptian General Petroleum Company, in total producing about 12,000boepd.

It is looking to drill nine onshorewells inthecountry this year, plus three offshore development wells. Mr Dancer said thedanagroup was looking to grow production f r om about 60,000boepd to about 100,000 next year and to about 150,000 in five years.