Dana Petroleum strikes Egypt exploration deal

Oil and gas explorer Dana Petroleum has agreed to acquire a 50% stake in a concession off the coast of Egypt from BG Group, boosting its exploration prospects in the North African country.

Dana today said it would fund the cost of the next exploration well, which is planned for early next year, up to an agreed cap to earn the 50% interest in the El Manzala Offshore Area Concession.

The Aberdeen-based group is also in talks with Korea National Oil Corp after receiving a preliminary takeover approach from the South Korean state-run company at the beginning of the month.

"This further extends Dana's strategic position and growth opportunities across Egypt, where we are already 50/50 partners with GDF Suez in the western area of the Nile Delta," said chief executive Tom Cross.

Dana has made two gas discoveries off the coast of Egypt but last month the Bamboo well, seen by analysts as key to its exploration programme, disappointed the market as it failed to find oil.