Dana assets already attracting attention

Published on Sunday 18 October 2009 20:42

DANA Petroleum, the independent oil exploration company, has revealed it has received approaches about buying its assets just days after becoming the largest independent holder of gas reserves in the UK.

Dana has more gas reserves than any other oil explorer, with energy consultancy Wood Mackenzie estimating it is sitting on 400 billion cubic feet of gas.

Merrill Lynch predicted last week that Aberdeen-based Dana would look to monetise the assets in the medium term.

But it appears the sharks may already be circling – chief executive Tom Cross told The Scotsman that the major utilities "all want more gas" and its reserves had attracted interest.

"We've had approaches from people to say, 'we'd really value those gas reserves'," Cross said. "It's something we're alert to, but we're not actively marketing our position." Cross declined to name parties which had expressed an interest.

While the company would "look at" approaches for the assets, Cross said he would prefer to continue building reserves for the time being.

"We're inclined to just get on and drill the (exploration] programme and see where we get to."