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?

And Faucon hits while im out - no!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Dana Petroleum PLC
06 December 2005





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

Faucon-1 Well Discovery

Dana Petroleum is pleased to announce that the Faucon-1 exploration well,
currently being drilled in Block 1 offshore Mauritania, has encountered
hydrocarbon bearing sandstones within the main Cretaceous age target horizon.
Drilling has been temporarily suspended at 3,536 m while a full suite of
wireline logs, formation pressures, fluid samples and core samples are obtained.
Thereafter, it is the intention to deepen the well by up to a further 700 m in
order to fully explore the Cretaceous section. A further announcement will be
made in due course, regarding hydrocarbon type encountered and the likely size
of the discovery, once all the data gathered from the well has been recovered
and fully evaluated.

Yesss :-))))))))))

Sorry you weren't in Fundy. For once I read it right. Gordon Brown's "capricious" behaviour was already in the price.

It is anybody's guess as to how far the price will continue north pending figures for the actual size of the discovery. It may still be right to buy now with a view to selling on actual news.

I'm holding on. This is going to cause the majors to go and weigh their piggy banks. IMHO the general Mauritanian exploration has been down-played by those who are not represented there. If this turns out to have size, they can't afford not to get involved.

Edward

well done

not sure GB was in the price as VPC was hit 7% on the news, just i think there were people happy to mop up any sales yesterday!!!

Faucon has been estimated at potentially 1 bn barrels and with further drilling news here and Clachnaben (i think thats how its spelt) to come plenty more to come on the SP especially if anyone decides to run their sliderule over Dana

Have started to rebuild my position this am (though hard as cant get a decent order filled!)


Note to self - dont mess around with good solid long term holdings!!!

This news will take weeks to be fully priced in Fundy so plenty of time to get back in.

Dil

Indeed - to be honest this is only an initial announcement, the announcement that the field is commercially viable will see it fly

I hate these solid performing companies - must take a look at some of the real growth stocks like YOO lol

Looking gooooood again I agree fund it does get boring going up all the time. A little tip for you cct.

Well spotted boys, suppose the only chance of a little pull back ( to let people In ) Is them having a lack of stock?

stan
Wasn't really spotted me and fund have been in since 200p some think days.

Just checked and only able to buy 1500 max. online.

Anyone know what It's like when things are quieter In this stock please ( max. able to buy that Is)?

I'm not desperate so won't be using the phone.

Stan, Have a look aTLW , same field but not reacting with same enthusiasm. Narrow spread and MS seems OK. Less volatile than DNX over last few months.

Thanks Fred, I'll have a dig.

Stan

online limits are rarely more than 5000, though if you put a limit order in you should get filled quite quickly (i have done on several occasions including today)

Thanks Fundi I've noted that for future reference.

Sorry to hear you got caught out on the Faucon update Fundy. :-(

Clachnaben plugged and abandoned :-(

Dana Petroleum PLC
12 December 2005



DANA PETROLEUM PLC

('Dana' or 'the Company' or 'the Group')



North Sea Operations Update



Dana Petroleum is pleased to provide an update on its North Sea operations,
which are focused on low risk field developments scheduled to double the
Company's average annual production to around 40,000 barrels per day within the
next 2 years.



Southern North Sea Gas Fields



The Johnston gas field extension project was successfully completed and brought
on stream towards the end of November. Although the start of production was
later than anticipated, the project is performing well and has resulted in a
more than doubling of the total Johnston field production potential. The field
is now able to comfortably fill its production capacity of around 70 million
cubic feet per day of gas at the host Ravenspurn North platform.



In the Anglia gas field, the Noble Julie Robertson drilling rig has arrived on
location to drill the 48/18b-BC appraisal well from the Anglia subsea template.
If successful, this well will be immediately completed as the B3 production
well, adding both new reserves and production to Anglia.



Further infill well locations in both the Johnston and Anglia fields have been
identified for drilling later in 2006. Dana's interest in the Johnston field is
currently 49.9%, including the incremental 22.1% interest being acquired through
the recently announced asset exchange agreement with Gaz de France. Dana's 25%
interest in the Anglia field is also being acquired through this agreement.



Following the Anglia well in 1Q 2006, the Noble drilling rig will move to the
undeveloped Babbage gas field, in which Dana recently acquired a 40% interest
from Shell, to drill an appraisal well to the 48/2a-2 discovery. The well will
target a crestal area of the reservoir in order to confirm reservoir
productivity ahead of a development decision. If appraisal is successful, it is
expected the field will be moved quickly into development as a tie-back either
to the Johnston subsea infrastructure, located some 10km to the north, or
directly to the host Ravenspurn North platform, located around 12km to the
north-west. The Babbage field has the potential to contain up to 390 billion
cubic feet of gas-in-place in Permian age Rotliegend sandstone reservoir.



To the west of Babbage, the acquisitions from BP of a 100% operated interest in
the exploration sub-areas of UK Southern North Sea Blocks 42/29 and 42/30 and an
81.28% interest in the exploration sub-area of Block 47/5c have now been
completed. All three of these blocks lie directly to the East of the Cleeton
and Neptune field gas transportation and production infrastructure. Dana now
intends to conduct further studies and reprocess existing seismic data with a
view to drilling an exploration well to test the Colden Parva prospect.
Development options for the Monkwell gas field, located in Block 42/29 (Dana
100%), are also under review. Originally discovered in 1968, Monkwell was
production tested at rates of up to 27 million cubic feet per day of gas during
an appraisal campaign in 1989/90.




In the Dutch sector, the F16-E gas field (Dana 1.2%) was brought on stream in
late November and is now producing gas at a rate of around 90 million cubic feet
per day from two wells. Two further wells remain to be drilled and brought on
stream over the next few months.



Central North Sea Oil Fields



In the Greater Kittiwake Area (Dana 50%), the Mallard field has been
successfully repressurised via the new water injection well drilled earlier in
the year, thus allowing oil production to be brought back on stream in recent
weeks. Although Mallard oil production recommenced later than originally
planned, the reservoir performance since it came back on stream has been well
ahead of expectations with rates of up to 13,000 barrels of oil per day
achieved.



The Gadwall oil field came on stream in 2Q 2005 and has also performed well,
indicating oil-in-place volumes at the top end of the range of expectations. A
water injection well is therefore now being drilled, with the objective of
maintaining production levels and increasing the oil reserves being recovered
from Gadwall.



The Mallard and Gadwall oil fields are tied back to the host Kittiwake Platform
(also Dana 50%). In order to increase average production output, by improving
operational uptime, a single anchor loading ('SAL') oil export system has now
been installed and commissioned at Kittiwake. This SAL has replaced the less
efficient loading buoy and export tanker arrangement previously used. The new
system has greater resilience to adverse weather and therefore the operational
performance and uptime for all 3 producing fields in the Kittiwake area should
be significantly improved, particularly during the winter months.



Northern North Sea Exploration



The exploration well in Block 211/22a (Clachnaben) found the main Brent
sandstone target to be present as prognosed. Although minor oil shows were
observed, the reservoir was found to be predominately water-bearing and the well
is therefore being plugged and abandoned. Dana's technical team continued to
work the data from this area right up to the point of drilling and determined
this prospect to carry more risk than other North Sea wells Dana is planning for
early in 2006. Therefore Dana decided to redirect funds to the important
forthcoming appraisal wells in the Babbage and Anglia gas fields and thus
significantly reduced its cost exposure to the 211/22a well by farming out just
ahead of drilling.



Record Group Production Capacity



With the Johnston and Mallard fields now fully on stream and a number of the
Company's North Sea fields producing above forecast, Dana's overall production
capacity has now reached 30,000 barrels of oil equivalent per day (boepd) when
all fields are flowing. This is a record high for the Company.



Completion of the exchange agreement with Gaz de France is expected during 1Q
2006. This will add both Anglia and additional Johnston gas production, which
will boost Dana's overall capacity further. Looking at the projected out-turn
for 2005, the later than anticipated start of production from the Johnston
extension project and the Mallard field is likely to result in average
production for the latter part of this year being slightly below previous
expectations. Average production for the whole of 2005 is therefore now
expected to be in the range of 19,000 to 19,500 boepd. Given the high level of
development activity offshore, the final figure will be dependent on the
production uptime that can be achieved in December.



12 December 2005

Interesting moves in institutional shareholdings including this morning's RNS from Goldman's:

http://moneyam.uk-wire.com/cgi-bin/articles/200512191134128640V.html

It seems that GSCO now account for about 24% of the shares, (based on REFS figure of 78.7m shares in issue at 28 October). Did they acquire these from "MHR Advisors LLC" who held 23% at that time according to REFS - but whose interest has not been announced as having changed?

Also Fidelity's holding has risen from 5.2% at 28 Oct. to 10.3% according to their announcement on 22 November:

http://moneyam.uk-wire.com/cgi-bin/articles/200511221010574781U.html

Edward

you beat me too it, was just looking at the percentages, certainly some interesting moves

Just seen the price at close of play, are we expecting positive news re Faucon in Hardmans drilling update in the morning?

In answer to my question ill take that as a no

The Faucon-1 discovery is a very important result for Dana's licence interests
in southern Mauritania and Senegal, which span three large contiguous production
sharing contract areas. Whilst the information collected so far would imply
Faucon is unlikely to be commercial on a stand-alone basis, it has proven the
presence of hydrocarbons and that the vital combination of petroleum source,
reservoir and trap is working in this vastly under-explored part of West Africa.
Faucon has also demonstrated that significant potential reservoir sand can be
present in the Cretaceous, which could lead to much larger discoveries in this
region. Faucon therefore provides enormous encouragement for the additional
prospects in Block 1, such as Petrel, and also for the future exploration of
Dana's neighbouring licence interests, namely Block 2 immediately to the north
and the St. Louis Block in Senegal which adjoins Block 1 to the south."