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?

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."

We're looking at a buying opportunity then, lol.

You could yet be right, Steve. This news might hit the price for a or so as opposed to a 3 or 4 upside had Faucon been commercial. Overall the longer term outlook remains bright enough. It is just that today the timescale for canny investing is a little harder to see.

Still holding as you say compoundup the future outlook remains bright enough.

Now looks well oversold. 2 day fall about standard. Should bounce tomorrow IMHO.

rgrds
gk

NOTIFICATION OF MAJOR INTERESTS IN SHARES
http://moneyam.uk-wire.com/cgi-bin/articles/200512221529011289W.html

Fid upping their stake by 1/2 million :-)

Nice little read.

oilbarrel.com

03.01.2006
Drillbit Disappointments In Mauritania, Angola And The North Sea But Good News For Burren In Congo
High oil prices have triggered increased levels of exploration spending across the sector. Rig owners are enjoying soaring day rates and busy order books while oil companies are making friends with rivals that have access to spare rig slots. Yet all this spending and spudding doesnt necessarily equate to more discoveries: the black stuff is getting harder and harder to find.

Mauritania may be an explorers favourite - there have been a string of exciting oil and gas finds in these previously undrilled waters - but it has also seen its disappointments. The most recent of these is the Faucon-1 wildcat in Dana Petroleums Block 1, which lies outside the hot zone of blocks 3,4 and 5 (home to the likes of Woodsides Chinguetti oilfield, now on track for first oil in the first months of 2006).

At first hopes were high for Faucon-1. There were pre-drill estimates of a possible one billion barrel prospect and shares in Dana jumped 82 pence to 973 pence in early December (even in the face of Gordon Browns North Sea tax hike) on news that the well had encountered a fluid influx of 27 barrels and penetrated hydrocarbon-bearing sands in the upper Cretaceous - but at that time the well had not been logged or tested.

Further details released later in the month were less encouraging and shares in Dana Petroleum dropped by more than 10 per cent, making the Aberdeen-headquartered companys earlier decision to reduce its 60 per cent exposure by farming out 24 per cent to French company Gaz de France seem eminently sensible.

The well is now being plugged and abandoned, after finding two hydrocarbon-bearing sandstones some 150 metres apart, of which the upper zone was gas-bearing and the lower sandstone appeared to contain light oil or liquids-rich gas-condensate. Further details will be released in January once the fluid samples recovered downhole have been analysed in an onshore lab, said Dana in a statement.

It was left to partner company ROC Oil (2 per cent) to give a little more detail on the well: a regionally significant but sub-commercial, discovery. The City backed this analysis and a number of analysts downgraded Dana in the wake of the Faucon-1 results.
Even so, the well has proved the existence of a working hydrocarbon system outside the Mauritania hotzone: Faucon-1 was drilled 140 km south of Chinguetti. As ROC Oils CEO John Doran noted, Exploration offshore Mauritania is still in its infancy: more than 14 million acres/50,000 sq km; barely scratched by the drill bit."

It wasnt just exploration offshore Mauritania that proved disappointing in the days running up to Christmas. Tullow Oil, which recently signed up for its first exploration project in Angola, announced that two wells there, Ngueve-1 and Henda-1, had come in dry. The company has a 15 per cent stake in the Devon Energy-operated 4,800 sq km Block 10 in the South Kwanza Basin and believes there is further prospectivity on the acreage.

Closer to home, Elixir Petroleums Muness well in the UK North Sea is being plugged and abandoned after finding only minor gas shows. Elixir has a 7 per cent stake in the block and is already looking ahead to its next North Sea project: the high impact Jaguar well, which is due to spud later in January.

It wasnt all doom and gloom at the drillbit in December, however. Burren Energys MBoundi field in Congo (Brazzaville) yet again delighted the market as new development drilling produced some exciting production rates. Well MBD 1201 on the northwest perimeter of the field is flowing at 3,200 bpd, MBD 1104 to the west at 700 bpd and MBD 1006 on the northeast perimeter at 2,600 bpd. Development wells MBD 1202, 1105 and 1903 are currently drilling and, if successful, are expected to be placed on production later this month.

Nice to see a revisit of the 1000p level on the back of a rising oil price. Not too long now till results, will we get any more drilling news beforehand?

Be good to see it hold the 1000p level for a couple of days.

Likely to depend on the short term oil price i would think Dil, but yes would be nice to see it hold above 1000p