Dana Petroleum makes a notable discovery of a new gas field in the Southern North Sea

Dana Petroleum, a UK-based exploration and production company, has made a significant discovery in the southern North Sea. Located in the 42/27 block, this new gas field marks a major accomplishment for Dana, which also operates this block. The exploration into the Earn structure within this block resulted in the discovery of high-quality gas, as reported by South Korean state-owned oil entity KNOC on 19 October. It's worth noting that Dana is a full subsidiary of KNOC.

Dana became a stakeholder in the 42/27 block in 2020 when it acquired a 50% stake. The company embarked on comprehensive exploration drilling in July of the subsequent year. As of now, an evaluation test is underway to ascertain the precise volume of resources present within the Earn structure. This structure's strategic location is just 4km to the west of Dana's other significant venture, the Tolmount Southern North Sea gas development. Specific details about the discovery remain under wraps at this point.

Dana also holds a 50% stake in Tolmount, sharing its stake with UK oil and gas producer, Harbour Energy. The Tolmount Main gas field, boasting reserves of 24 million barrels of oil equivalent (boe), began its full-scale output last year. Furthermore, Dana's Tolmount East field, housing reserves of approximately 18 million boe, is all set to initiate production in the upcoming year's first quarter.

From the production standpoint, Dana's net contribution from Tolmount is quantified at 20,000 barrels per day (b/d) of boe. The company's operations span multiple regions, including the UK, the Netherlands, and Egypt. According to the data available on Dana's official website, its average oil and gas production stood at 40,416 b/d in 2022.

Commenting on this development, Dana's chief executive officer, Nam Jae-gu, acknowledged the challenges tied to large-scale exploration investments due to the inherent risks. However, he emphasized Dana's unwavering commitment to bolstering low-cost and low-risk exploration activities. The ultimate aim, he stated, is to ensure that Dana continues to thrive and has robust growth engines in place for the future.

According to the article by Procurement Resource, Dana Petroleum, a UK firm and subsidiary of South Korean state-owned KNOC, has uncovered a promising gas field in the 42/27 block of the southern North Sea. The discovery within the Earn structure, located merely 4km west of Dana's Tolmount Southern North Sea gas venture, is a significant achievement. Dana, which owns 50% of both the 42/27 block and Tolmount, has been expanding its exploration activities, despite the acknowledged risks.