Dana Petroleum has returned to profit. Preliminary results show a pre-tax profit of £6.4 million (€8.1 million) in 1999, which contrasts with losses of £24.2 million in 1998. Chief executive Mr Tom Cross said it was "an excellent year in 1999, with progress to report on all fronts". The main growth "remains focused on assets in Europe and west Africa, where we achieved important oil and gas discoveries in 1999". Exploratory drilling also continues in the Far East and development drilling in Russia.
The group's average production rose by 15 per cent to 6,119 barrels of oil per day, some 70 per cent of which came from Britain. The ratio between oil and gas was 73/27, Dana said.
Oil and gas reserves increased by 16 per cent due to additions in Europe and the Far East. "Hence Dana's reserves replacement was more than six times its 1999 production," the group said.
The higher turnover reflected the benefits of acquisitions and development drilling coupled with higher oil prices in the latter part of the year.
On the future, Dana said oil price volatility over the past two years had reinforced the need for modern oil companies to "work smarter and faster than ever before". It stressed that it was "particularly well placed to build upon its position as one of the UK's leading independent oil and gas companies, with a strong cash balance and minimal debt".
