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Dana descends on Petro-Canada Netherlands
Posted 14.06.2010 09:47:47 av John Bradbury
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Aberdeen-headquartered Dana Petroleum is expanding in the Dutch sector of the North Sea with the acquisition of PetroCanada's operating subsidiary there in a deal worth €328 million (£270 million – US $ 393 m).

Dana is buying up Petro-Canada Netherlands and with it acquires 31 m boe of proved and probable reserves, 51 mmboe of proved, probable and possible (3P) reserves in addition to unrisked prospective resources of 67 mmboe across the Petro Canada Netherlands portfolio.

The deal bring Dana another core area in Europe, increasing Dana's tally of producing fields from 36 to 54  including 15 new offshore fields and three new fields onshore .

Assets including the Hanze oil and gas field, De Ruyter – which are operated by Petro-Canada Netherlands, plus interests in non-operated assets including L05b and c, L08b, operated by Wintershall,  the P15 and P18 areas operated by Taqa, plus a minority stake in the Dutch Alkmaar gas storage project also operated by Taqa.

Explaining the logic behind the deal in a statement today, Dana's board of directors said the deal provides an opportunity to enhance shareholder value.  “...This would be achieved via developments in the core areas and exploration centred around existing infrastructure hubs. Medway in the De Ruyter area offers near term production through an integrated oil and gas development with start up planned for 2012. The recent L06-B HPHT gas discovery should provide further reserves growth in the L05, L06, L08 areas, whilst the L06-LS5 exploration prospect, which is currently being drilled, should also provide further upside potential,” the company said.

Tom Cross, Dana's chief executive, noted that this will be the fourth international acquisition by the company in the last three years. “....And is the most significant and exciting development in the company's history.”

He went on: “It builds upon our portfolio approach to the E&P business and provides a significant production and reserve growth step for the group. In addition, the Acquisition adds considerably to our operating capability in the North Sea, better positioning Dana to capitalise on the operated developments emerging from our own organic portfolio and to pursue further operated opportunities in the future.”

Dana is due to complete the deal by July and will pay in cash.
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