British Oil Company Dana to Buy Petro Canada Unit
June 14, 2010
British oil and gas company Dana Petroleum said it agreed to buy Petro Canada Netherlands for around 270 million pounds to boost its reserves and production, according to Reuters. Dana, which holds oil and gas assets in the UK and North Africa, said on the deal would give it exposure to the Dutch North Sea and could raise Dana''s previous 2010-production guidance by about 10-12 percent on an annualized basis. Dana estimates that its output will rise by 8,000-9,000 barrels of oil equivalent per day in 2011, a 20-25 percent gain on the previous guidance for the group, and by 10,000-14,000 boepd in 2012 boosted by new projects in The Netherlands. The purchase would also raise Dana''s proved and probable reserves by 12.2 percent to 254 million barrels of oil equivalent and give the group a more balanced 60:40 oil-to-gas ratio. Dana said it had agreed a $900 million loan and revolving credit facility with the Royal Bank of Canada to help fund the deal and for broader corporate refinancing. The company said the deal, which is conditional upon approval from its shareholders, was expected to complete in the third quarter of 2010.