Dana Petroleum, the Aberdeen-based oil and gas operator, saw its shares rise sharply yesterday after it gave a bullish update on its exploration success and outlook.
It said that despite weaker commodity prices in the latter part of 2008, and some one-off charges, it expected to deliver record financial performance for the year.
Chief executive Tom Cross said: “Dana delivered record production in 2008 and also had an excellent year with the drill bit, adding record oil and gas reserves and replacing production by around 300%.
“The group is now producing from 31 oil and gas fields, progressing two new field developments which are due on stream in 2009 and 2010, and working on a number of highly attractive potential development projects.
“2009 will see the delivery of an extensive exploration programme: 17 wells are planned for this year, focused on the UK, Norway, Morocco and Egypt.
“The company has a strong balance sheet, alongside a valuable portfolio of growth opportunities and is well positioned to deliver further commercial transactions.”
Dana was updating investors prior to its 2008 full-year results, due for release at the end of next month.
It said it had achieved record average oil and gas production of about 39,400 barrels of oil equivalent (boe) per day in 2008, representing 29% growth year-on-year.
Its 31 producing fields are in the UK, Egypt, Norway and the Netherlands. The company forecast that daily production for 2009 would average 37,000-41,000boe.
Dana said a highly successful exploration programme had resulted in record oil and gas reserve additions, notably in the UK and Egypt, with proven and probable reserves increased to a new peak of 194million boe at the year-end, up from 165.8million boe in 2007. It added that it had won significant new acreage in the latest UK and Norwegian licensing rounds, with 37 blocks awarded.
The company also said that it had £159million cash in hand at the 2008 year-end, with bank debt fully repaid.
Its capital investment in 2008 was about £176million, and it expects to invest about £235million this year.
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