Dana Petroleum is delighted to announce that the UK Government's Department of Trade and Industry (DTI) has given its approval for the development of the Goosander oil field, located in Block 21/12 in the UK Central North Sea. Goosander will be developed as a 12 kilometre sub-sea tie back to the Kittiwake platform.

The Goosander oil field was discovered by Dana and its then coventurers in 1998 by the 21/12-3 exploration well, which flow tested at 8,200 barrels of oil per day. In accordance with the approved development programme, this well will now be re-entered and completed as a producer.

This work is scheduled for Q2 2006 using the Transocean 704 drilling rig. The drilling of a water injection well to support the producer is planned for 2007, subject to the performance of the production well.

First oil is anticipated in Q3 2006 at a peak annual average production rate of approximately 9,500 barrels of oil per day. Field life is expected to between 7 and 10 years with cumulative production of 15.2 million barrels of oil and 2.6 billion cubic feet of gas.

The coventurers in the Greater Kittiwake Area are Dana Petroleum 50% and Venture Production 50% (operator). This significant Central North Sea production hub will now see the Goosander field added to its already producing Kittiwake, Mallard and Gadwall oil fields.