UK: Dana Petroleum Reports Succesful Blackbird Flow Test & Increased Oil Production at Ettrick

Dana Petroleum  reports the successful flow testing of the recently drilled appraisal well at the Blackbird oil field, in the UK Central North Sea.

The 20/2a-9 well, operated by Nexen Petroleum UK, was drilled in a water depth of approximately 367 feet to a total measured depth of 12,000 feet, targeting a high quality Upper Jurassic oil discovery. Following detailed evaluation of all the gathered well data, it is now assessed that the well encountered 389 feet of gross pay and 90 feet of net pay of good quality oil bearing reservoir sands.

The well has been successfully flow tested, producing dry oil at a facilities constrained stable flowrate of 7,000 bopd through a 38/64″ choke. The well has already been completed and will be suspended for future use as an oil producer, through a potential future tie back to the Ettrick FPSO.

Following the recent tie-in of two further development wells to the Ettrick FPSO, the oil production rate from the Ettrick field has increased significantly from around 22,000 barrels of oil per day to over 28,000 barrels per day. As a result of these additional wells, Ettrick is expected to reach oil production output levels of approximately 30,000 barrels of oil per day in the near future.

Development of the Blackbird oil field should bring significant new oil reserves through the Ettrick FPSO and maintain peak oil production rates at the Ettrick FPSO for a longer period than originally planned, in addition to extending the overall field life of Ettrick.

The Blackbird oil field will thus create value not only through its own development, but also add further value to the Ettrick oil field.

Dana Petroleum plc is a leading independent oil and gas, exploration and production company listed on the London Stock Exchange (symbol: DNX), and is a constituent of the FTSE 250 Index.

The Group currently produces from 36 oil and gas fields across four countries (UK, Netherlands, Norway & Egypt) and holds more than 100 interests in exploration and production licences spanning nine countries. Dana’s activities are focused within its two core areas of Europe (North Sea) and Africa (North & West).

In Africa, Dana has production, development and exploration interests across Egypt, oil and gas discoveries offshore Mauritania and Morocco, and additional exploration opportunities offshore Senegal and Guinea.

In Europe, Dana’s producing interests are focused on oil and gas in the UK North Sea, oil offshore Norway and gas offshore The Netherlands. Dana also has significant development and exploration opportunities across the North Sea, including development of the Babbage gas field which is due on-stream in August 2010, the Arran gas fields (formerly known as Barbara/Phyllis) and the Western Isles oil fields.

In addition, on 14th June 2010 Dana entered into an agreement to acquire the entire issued share capital of Petro Canada Netherlands BV. The acquisition represents the Company’s largest acquisition to date, providing Dana with a significant growth step and a complementary asset base in the North Sea, bringing Dana’s total number of producing fields to 54 from 36 currently.

This acquisition will provide Dana with an additional 31 million barrels of oil equivalent (“mmboe”) of proved and probable reserves and 51 mmboe of proved, probable and possible reserves at 31 December 2009, and unrisked prospective resources of up to a further 67 mmboe across the Petro Canada Netherlands portfolio (20 mmboe on a risked basis).

Petro Canada Netherlands’ net production this year, to end April 2010, averaged 12,136 boepd. The acquisition is expected to complete this month and, together with the Babbage development, should increase Dana’s daily production capacity to around 50,000 boepd.

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Source: Dana petroleum, August 10, 2010: