UK outfit set for action as it takes stakes in North African acreage
UK player Dana Petroleum has raised its profile in Morocco after striking deals with Spain's Repsol YPF and European juniors Tethys Oil and Eastern Petroleum.
Dana has agreed to take a 15% working interest in Repsol's offshore Tanger-Larache blocks 1, 2 and 3 in return for assigning the Madrid-based player a 3% interest in blocks L5 and L7 off Kenya, adding to the 20% it landed recently after a farm-in agreement with Australian operator Woodside.
Once the deal is completed, Repsol will hold a 30% operating stake in the Moroccan acreage with the remainder held by Spain's Gas Natural (30%), state-owned Onhym (25%) and Dana.
Operatorship of the two Kenyan blocks will remain with Woodside (30%), leaving Repsol with 23%, Dana on 27% and Australia's Global Petroleum on 20%.
A wildcat is due to spud in one of the two blocks by theend of the year.
The Tanger-Larache blocks cover 5495 square kilometres with water depths ranging up to 600 metres.
Some 3D seismic has already been shot over the acreage, revealing a number of prospects close to the coast.
Dana said: "These (prospects), coupled with a nearby gas-fired power station and indigenous market for gas, make the blocks very attractive for exploration and development".
The second deal will see the London-based company take on a 50% working interest in ex-ploration permits when they are issued in relation to the onshore Bouanane reconnaissance licence.
Dana will pay Tethys and Eastern's share of costs in relation to shooting further seismic and following completion of the transaction, its partners will be Tethys (12.5%), Eastern (12.5%) and Onhym (25%). The acreage covers 2116 square kilometres in north-east Morocco with seismic said to have identified prospects analogous to discoveries in Algeria. Dana plans to acquire further seismic during the first half of 2007.
Dana boss Tom Cross said: "A strategic review of new ventures carried out during 2005 identified Morocco and Egypt as two key areas the company would aim to enter, due to their stable and attractive fiscal regimes and significant hydrocarbon potential.
"Dana is also actively pursuing additional licences in these countries and participating in bidding rounds to further build on this strong position."
Dana's profit before interest and tax for the six months to 30 June fell to42.8 million ($80 million) compared to the restated58.2 million in 2005. However, the company said that after adjusting for exceptional items in both periods, the 2006 pre-tax/interest figure was48.9 million, 33% higher than in 2005.
© Upstream 2006
