LONDON, July 11 -- Dana Petroleum PLC Wednesday said it has paid $14 million for Burlington Resources UK Inc.'s stake in UK North Sea Blocks 21/12 and 21/13a and its interest in Royal Dutch/Shell Group subsidiary Shell Expro's Goosander oil development.
The buy-in triples Dana's stake in the Goosander field, where reserves are thought to stand at more than 16 million bbl, to 37.374%. Goosander is being developed as a subsea tieback to Shell's Kittiwake platform, due onstream by mid-2002 at a rate of 15,000 b/d of oil.
Dana noted that current reserves estimates "may prove much larger, as no oil/water contact has yet been encountered in the reservoir."
The deal also increases Dana's position in the surrounding acreage of 21/12 and 21/13a to 30.4409% and 24.997%, respectively.
"This area is of strategic importance to Dana's growth, combining near term development potential with a number of exciting prospects identified from 3D seismic," said Dana's chief executive, Tom Cross. "In a fiercely competitive environment, where premium prices are being paid for North Sea assets, Dana has secured this high quality position at a very attractive price."
Partners in Goosander are Shell (31.3132%), ExxonMobil Corp. (31.3132%), and Dana (37.3736%); on Block 21/12, Shell (25.5047%), ExxonMobil Corp. (25.5047%), Dana (30.4409%), and Conoco Inc. (18.5497%); and on Block 21/13a, Shell (27.503%), ExxonMobil Corp. (27.503%), Dana (24.997%), and Conoco Inc. (19.997%).
