DANA PETROLEUM: DRILLING FOR 1 BILLION BARRELS OF OIL

Recommended to hold @ 1294p

From a finance Web Site.

Following our re-recommendation of Dana two
issues ago, it was pleasing to see it releasing a perky
AGM statement, which noted that average production
should be between 24,000-27,000 barrels oil
equivalent per day (boepd) this year, nicely ahead of
the 19,683 boepd achieved in 2005. The company
also expects to exit 2006 at over 33,000 boepd and
remains on track to hit 40,000 boepd by the end of
2007. Dana’s upbeat tone reflects its expectation that
two new fields, Enoch (oil) and Cavendish (gas), will
start producing before the year is out while a third,
Goosander (oil), has just commenced production.
Other highlights include a new gas discovery
the E18-DF) in the Netherlands, while a key
appraisal well testing the Babbage gas field, where
pre-drill estimates are for 390 billion cubic feet
(65m barrels), is ongoing. Dana’s international
exploration program will commence in Mauritania
this August starting with its Flamant prospect (up to
1.5 trillion cubic feet), while a separate rig will start
a two well campaign in Kenya at the end of the year.
Dana plans to give more specific production
guidance for 2006 when it reports interim results in
September. The shares have hit new highs recently;
continue to hold.1294p