Record production at Dana

06/02/2009 Robert Tyerman

North Sea and Egypt-focused Dana Petroleum says oil and gas output rose 29 per cent last year to 39,400 barrels a day.

The fully listed company, which is now producing from 31 oil and gas fields in the UK, Egypt, Norway and Holland, says it has now increased its proven and probable reserves to a record 194 million barrels of oil equivalent, representing a 300 per cent rate of reserves replacement. Dana, which says it expects average production for 2009 of between 37,000 and 41,000 barrels of oil equivalent a day, plans to drill 17 wells this year in the UK, Norway, Egypt and Morocco, and to spend £235 million on capital investment.

With year-end cash of £159 million and its bank debt fully repaid, Dana is ‘well placed to deliver further commercial transactions’, declares chief executive Tom Cross. The shares, which fell from £19.72p last May to 641.5p in November, have now bounced up to 973.5p, valuing the company at £846 million.

Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.