August 30, 2008

Dana’s Record Profit Surges 138 Per Cent

By Jane Bradley

DANA Petroleum, the Aberdeen-based oil and gas explorer, heralded the "most active year" in its history as it cheered record profits and production in its first half, boosted by a strong performance at its fields in the North Sea and Egypt.

Turnover rocketed by 188 per cent to GBP 314.5 million over the six months to the end of June, while pre-tax profit surged 138 per cent to GBP 133.1m. Production increased 67 per cent to 43,147 barrels of oil per day.

Oil and gas companies have recently been cashing in on record fuel prices, with Dana not the only Scottish firm to report an upbeat set of results.

The news follows bumper results this week from both Melrose Resources, which revealed a 209 per cent increase in interim revenues to dollars 234m, and Venture Production, which unveiled a 67 per cent hike in pre-tax profits to GBP 113.2m.

Dana also issued an upbeat outlook for its second half, saying the fact that its oil and gas sales were unhedged, combined with rising commodity prices, meant it had maximised income.

It pointed out that 17 wells were scheduled in the UK, Norway and Egypt, while there had been "significant" new oil discoveries over the period at West Rinnes and East Rinnes in the UK and an important gas discovery at West El Burullus off the coast of Egypt.

Chief executive Tom Cross said: "Dana's excellent operational performance in the first six months of 2008 has delivered major increases in oil and gas production, profits and cashflow which have all surged to new record highs.

"The group is now producing from 30 oil and gas fields and undertaking three new field developments, which will come onstream from 2009."

He added that Dana also had a further 21 potential projects in the pipeline.

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