Just cannot understand recent SP volatility!

As a Dana shareholder I find it difficult to
find any reason to sell, even at current price. The Company has recently
entered a number of agreements which will have
considerable benefits:-

1. Reserves from 31st December 2003 of 123.7 mmboe
must now be in the region of 200.0 mmboe.( 100 million
North Sea 70 million Mauritana 30 million Russia ).

2. Production will rise to 25-27 thousand boepd in
2005 from 18 thousand in 2004.

3. At 30th June 2004 a Net cash position which will
have been enhanced significantly year to date.

4. Exciting exploration potential.

5. Management that seem to know what they are doing
with an excellent chief executive.

6. Recent deals by other oil companies have seen oil
assets bought at prices between 7-11 dollars a barrel
( see last weeks Investors Chronicle ) Dana must have
a value well in excess of the current 300 million.

I am holding firm and looking towards 800 pence.

Any other views out there?

Happy with results, look decent to me at first glance. Look at the average price on UK crude sales, $51.71bp with no hedging. :-)

Seems Alves has changed his rating to a hold.

KBC Cuts Dana Petroleum Production Estimates

Wednesday, September 28, 2005 5:07:09 AM ET
Dow Jones Newswires



0846 GMT [Dow Jones] KBC Peel Hunt to cut 2005 production estimates for Dana Petroleum (DNX.LN), following company's own lowering of output forecasts. Analyst Tony Alves says 1H output was about 12% below his expectations although net income was in-line. However, says higher 2H oil price will offset lower production, and key event for shares in 2H will be Faucon exploration well in Mauritania. KBC has stock at hold. Shares -0.7% at 883p. (MCR)

http://www.newratings.com/analyst_news/article_1037169.html

Analyst meeting at 11 today.

Gav

seems he hasnt read them properly again!!! The lower production was due to shutting down producing fields to upgarde pipelines and open up the resrvoir with the lower first half production being more than compensated by the resulting higher 2nd half.

Gav

Still trying to get my head round them though the market appears to have them "priced in", spent most of the morning focussing on SKP who have screwed up good and proper. Managed to exit my long (from 53) at 47 and went short at same time. Now down to 41.5 so nearly back to levels for the day on them but been a wee bit stressful. Daft thing is i sold my "real" shares but forgot to do the same with the spreadbet!!!

Fundy,

Agreed. But at least he has changed from sell to hold! Perhaps he will get it right eventually, when they are producing 40k bopd by 07! Good news on the babbage deal this morning also.

Fundy,

Maybe just taking a bit of a breather right now, think quite a few oils are doing something similar, although TLW seems to have been a on a good run lately. I don't see anything in the results today to encourage me to close my sb. Pity about the SKP situation, but at least you made back the sb losses with a short, good trading, well done! I guess you could put the forgetting to close your long down as one of these mistakes everyone makes but learns from, made tons of them myself!!

Article on Sharecast today, a snippet:

"Chairman Colin Goodall said, Dana has continued to make excellent progress through 2005, delivering record interim results. The group now produces from 11 oil and gas fields with three more currently under development and further projects to be sanctioned in 2006.

Exploration and appraisal drilling is advancing strongly with three of the four wells drilled so far this year proving up new reserves and two further exploration wells scheduled before year end.

With a substantial inventory of quality prospects and rising cash flow, Dana intends to accelerate the pace of new drilling with an ambitious plan for up to 20 wells over the next two years.

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=545893

2 RNS's today.

Barclays seem to have added and now hold 12.04%, increase of around 1%.

http://www.companyannouncements.net/cgi-bin/articles/200510101617374595S.html

And Fidelity holding 3.2%. A new holding, or at least a new disclosable holding?

http://www.companyannouncements.net/cgi-bin/articles/200510101326144435S.html

Fund gavdfc
What happening I thought you two were looking after my dana for me, its not the oil price again is it.

General sentiment towards the sector Driver, most oil stocks have been hit the last few days - either that or the fact that Shares mag made it play of the week!!!

Happy to hold until and after drilling news from Faucon

fund
Cheers

Lets hope that IC don't come out with anything next week then!! Driver, agree with Fundy that the fall here is in line with the sector taking a hit overall since around the start of October, a few of my other oils have suffered along with DNX. Looking at the sector chart, it shows the fall from the highs at the start of October to now, which roughly conincides with the drop in the likes of TLW, SIA, CNE etc from a similar time and highs. Just some of my thoughts anyway.

">

Dana Petroleum plc ('Dana' or the 'Company')
Proposed placing of 3,953,498 new ordinary shares

http://moneyam.uk-wire.com/cgi-bin/articles/200511100700259183T.html

Blimmy that didn't take long.

LONDON (AFX) - Dana Petroleum PLC said it has completed its placing of 3.95 mln shares at 870 pence each, raising 34.4 mln stg before expenses.

A few points:

Why didnt they announce the placing alongside the deal the day before if they were linked?

Why did they need the placing - imo they have plenty of cash to cover this deal - is there something else to come?

If they were able to place 4m shares at 870p in a morning how did the price then drop 15p below this level? - i assume this is oil price driven rather than company specific


Personally, am very happy with the deal, reducing the risk of Mauritania (especially in some of the up front costs and bringing on board a french operator ) and providing other exciting prospects. I notice that Bridgwell analyst Al Stanton grumbled that the deal "increased uncertainty associated with a more diverse portfolio", but upgraded the company to "neutral". - how does increased diversity bring greater uncertainty lol - and these guys get paid to spout this drivel lol - in this he had a NAV of 877p .

Also, Numis reduced from Hold to Reduce saying more value "has been given away (from Mauritanian exploration) than has been gained" from the new Algerian and Egyptian assets. Argues that as the company ended 1H '05 with almost GBP40M of cash, some "will see this fund-raising ahead of the completion of the GdF transactions as opportunistic."


Would expect news from both Clachnaben in the North Sea and also Faucon in Mauritania hopefully by the end of the month and certainly by xmas

Nice to see the chairman buying 84Ks worth ahead of drilling - should give them a boost in the morning:



Dana Petroleum PLC
17 November 2005


Dana Petroleum PLC ('Dana' or the 'Company')
Directors Interests

Dana was informed on 16 November 2005 that Mr Colin Goodall, Chairman of Dana,
had, on that date, purchased 10,000 shares in the Company, representing 0.01% of
the issued share capital of Dana at a price of 842p per share. As a result of
this purchase, Mr. Goodall's total shareholding in the Company has now increased
to 46,133 shares, representing 0.06% of the issued share capital of Dana. Also
on 16 November 2005, the Company was informed that Mr Angus Pelham Burn, a
non-executive director of Dana, had, on that date, sold 100,000 shares in the
Company in connection with his tax planning, representing 0.12% of the issued
share capital of Dana at a price of 842p per share. Mr. Pelham Burn retains a
shareholding in the Company of 47,665 shares, representing 0.06% of the issued
share capital of Dana

Not sure how this will affect the price tomorrow Fundy, non-exec director also sold 100k. But yes it is still good to see the chairman getting his wallet out at any time.

Noticed that the pre budget statement has been announced for Dec 5th. Hopefully Brown won't announce any nasty surprises for the NS. The Americans have also been talking of a similar thing over there recently.

LOL

It is in the government's interest to encourage investment in the North Sea oil and gas industry but they're too thick to see it. If they frighten the oil companies away they'll have no production left to tax.

No one can seriously think this government capable of doing the right thing. Remember when they chose to sell off the gold reserves? - at the lowest available price for years.

Dana Petroleum PLC
23 November 2005









PRESS RELEASE



DANA PETROLEUM PLC ('Dana' or 'the Company')



International Exploration Update



Dana is pleased to provide an update on its international activities which are
focused on high impact exploration in Africa.



Offshore Mauritania, the Stena Tay drilling rig is now on location in Block 1
and has commenced drilling operations on the Faucon-1 well, the first of a
number of higher-risk but potentially transforming wells which Dana intends to
drill on its operated Mauritanian acreage over the next few years. The Faucon
prospect is a Cretaceous age channel system sealed against a salt diapir with
the potential to contain over one billion barrels of oil in place. Planned
total well depth is 4,200 meters below sea level which is expected to be reached
in approximately 30 days. Following completion of the recently announced
exchange agreement with Gaz de France the partners in Block 1 will be Dana 36%
and operator, Gaz de France 24%, Energy Africa (a subsidiary of Tullow Oil) 20%,
Hardman Resources 18% and Roc Oil 2%. All of Dana's costs in the Faucon-1 well
being carried by Gaz de France.



Offshore Morocco, the acquisition of a 2,150 square kilometre 3D seismic survey
over the North-West Safi exploration licence has recently begun. This survey
aims to define drilling targets on a number of prospects identified from a 2D
survey carried out in 2004, with a view to commencing exploration drilling in
2007. The partners in the North-West Safi licence are Dana 26.25%, Norsk Hydro
48.75% (operator) and Moroccan state organisation 'ONAREP' 25%.



Following the recently announced agreement with Gaz de France to acquire
exploration and development interests in Algeria and Egypt, complementing Dana's
existing interests in Mauritania, Senegal, Morocco and Kenya, Dana's
international operations will now cover six countries. To optimise the rapid
growth of this international asset base, Dana continually reviews its portfolio
to identify any licences which may fall below its targeted rate of return. As
a result of this process, agreement has been reached with the Kenyan authorities
to cease discussions regarding an extension to the initial term of Block L10
offshore southern Kenya and to simultaneously relinquish outlying ultra-deep
water Block L11. Dana will retain its interest in Blocks L5 and L7 in the
northern region of offshore Kenya where a number of exciting prospects have been
identified for drilling, starting in 2006. Dana holds an attractive commercial
position in L5 and L7, with two thirds of the costs associated with its 30%
interest being carried by operator Woodside Energy.

From Hardman:

Mauritania: Block 1: Faucon-1 Exploration Well The 'Stena Tay' drilling rig has begun drilling the Faucon-1 exploration well in Block 1. The 13-3/8' casing was set at a depth of 1,897 metres. As at midnight on the 28 November the well was drilling ahead and had reached a depth of 1,915 metres. Faucon-1 is located in 1,164 metres of water in Block 1. The reservoir target is a Cretaceous canyon complex sealed against a salt diapir, with a planned total depth of 4,200 metres.
Equities in Block 1 are: Dana Petroleum (E&P) Ltd (Operator) 60.0% Hardman Petroleum (Mauritania) Pty Ltd 18.0% Tullow Oil 20.0% ROC Oil (Mauritania) Company 2.0% All reported depths (except water depth) are referenced to the rig rotary table (RT). Hydrocarbon shows will be only be reported after all required logs have been run and evaluated, although Hardman will release weekly updates on the exploration drilling campaign. Times and dates refer to GMT (Mauritania time), 8 hours behind Western Standard Time, Perth.

Gordon Brown has increased tax take on new fields from 40% to 50%, share price starting to be hit, though not as badly as VPC which is down 7% since Brown started speaking

http://www.hmrc.gov.uk/ria/ns-oiltax-changes.pdf