DANA Petroleum is to raise £30 million through a share issue, with the proceeds to be used to increase its interests in western Siberian oil fields. Dana is exercising options to purchase stakes in three oil fields.
The placing and open offer of more than 139 million Dana shares is at a price of 21.5p per share and will give the company £27.9 million after the expenses of the issue. The issue is being underwritten by UBS Securities and Guinness and Mahon. Qualifying shareholders will be able to apply, for new shares on the basis of eight new shares for every 25 existing shares. The issue is subject to approval at an extraordinary general meeting.
Dana is exercising an option to buy 40 percent of the Yogan Nefi oilfield, bringing its holding to 60 per cent. The consideration for the original 20 per cent was $3.25 million (£2.05 million), with an additional $4.25 million to be paid to its joint venture partner SOC (Cyprus) to exercise the option.
The company is also buying a 20 per cent interest in YuganskOil from Waterford Finance and Investment, bringing its stake to 50 per cent, for $3 million in cash and 21 million ordinary shares. Dana has agreed to provide or procure funding for the development of the Sortymskoye oilfield operated by YuganskOil.
Dana is also buying 5 per cent of Evikhon, which has a 50 per cent interest in a joint venture set up to develop three onshore oil fields. The other party to the joint venture is Royal Dutch/Shell.
