Dana Petroleum, the Aberdeen oil and gas operator, told shareholders yesterday at its annual meeting in the Granite City that 2008 had been another excellent year for the company.
This included the continuation of its record of year-on-year growth.
Chief executive Tom Cross said: “Dana achieved record production growth in 2008 and also had an excellent year of drilling results, adding record oil and gas reserves and replacing production by some 300%.
“Following the successful acquisition of Bow Valley Energy, the group is now producing from 34 oil and gas fields.
“Furthermore, both the Ettrick oil field and the E18 gas field in the Dutch North Sea are due to come on stream in 2009 and the Babbage gas field in the UK southern North Sea will deliver first production in 2010.”
The CEO said that the company was also progressing well with some highly attractive development projects, such as the Rinnes/Melville oil fields and the Barbara/Phyllis gas fields.
He added: “2009 will also see the delivery of an extensive exploration programme. A total of 17 wells are planned for this year, focused on the UK, Norway, Morocco and Egypt. Already this year important oil, gas-condensate and gas discoveries have been made at South East Rinnes in the UK, Fulla in Norway and Anchois in Morocco.
“The company is well-positioned, with a strong balance sheet alongside a valuable portfolio of growth opportunities, and is looking forward to an exciting period ahead.”
Dana said that besides producing oil and gas in the UK, Egypt, Norway and the Netherlands, it was exploring for oil and gas in eight countries across Europe and Africa.
It said the substantial gas-condensate field at Fulla, in the Norwegian North Sea, had estimated proven reserves of 60-105million barrels of oil equivalent. Fulla was likely to be commercial and development options were now being considered.
The company said production to the end of April this year had averaged about 38,600 barrels of oil equivalent per day (boepd), and the Bow Valley assets, which could be taken into account after completion of the transaction on April 30, added about 5,400boepd.
It said average production for 2009 was expected to be around 43,000boepd.
Dana’s overall 2009 capital investment programme, including projected spending on the newly acquired Bow Valley assets, is expected to be about £244million.