Dana's good news keeps on flowing

Dana Petroleum, the Aberdeen-based firm currently being stalked by a state-owned South Korean oil major, said yesterday that it has successfully commenced gas production at its Babbage field in the North Sea.

The statement is the fourth piece of good news from Dana in ten days as it plays up its growth potential in the face of a possible takeover.

Dana met with representatives from suitor, the Korean National Oil Corporation (Knoc) last Friday and negotiations are understood to have continued behind the scenes.

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Knoc has made a 1,800p per share offer for Dana, valuing the oil and gas explorer at 1.7 billion.

Dana owns 40 per cent of the Babbage project, which is expected to produce more than five billion cubic metres of natural gas over the next 20 years.

Dana chief executive Tom Cross said: "The start of production at Babbage adds further value to the Dana Group and achieves another of Dana's key targets for 2010."

Dana now produces oil and gas 37 fields worldwide.

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