Dana Petroleum plc announced that its wholly owned subsidiary, Dana Petroleum (E&P) Limited, has completed the previously announced acquisition of Devon Energy Corporation’s entire upstream petroleum business interests in Egypt spanning eight companies and eight Production Sharing Contracts.
The purchase price at the effective date of 1 January 2007 is $375 million. In addition to receiving the oil and gas production and exploration assets of Devon Egypt, Dana will also gain approximately $67 million of working capital in Devon Egypt as at the effective date.
Tom Cross, Dana’s Chief Executive, commented: “This deal delivers a significant reserves and production growth step for Dana and strategically the acquisition fits closely with our previous Egyptian transactions. The new portfolio contains a good balance of producing oil fields with numerous attractive drilling opportunities, both on existing fields and within large exploration concessions.
Dana now holds assets positioned across the major petroleum provinces in Egypt, namely the Nile Delta, Gulf of Suez and Western Desert. The Group also has in place an excellent operating team in Egypt which is focused on delivering further growth”.