British oil and gas explorer Dana Petroleum Plc today said it will acquire Petro Canada Netherlands for 270 million pounds ($393 million).
In a statement, Dana Petroleum Plc said it has entered into an agreement to acquire the entire issued share capital of Petro Canada Netherlands from Petro Canada (International) Holdings for an estimated net cash consideration of about $393 million.
Petro Canada Netherlands is an upstream oil and gas exploration and production firm operating in the Dutch area of the North Sea.
The deal will provide Dana with an additional 31 million barrels of oil equivalent of proved and probable reserves. The transaction would give the company exposure to Europe and a complementary asset base in the North Sea.
The total number of producing fields operated by Dana would also increase to 54 from 36 currently. This would include 15 new offshore fields and three new onshore fields.
Dana Chief Executive Tom Cross said this transaction is "the most significant and exciting development in the company's history... In addition, the acquisition adds considerably to our operating capability in the North Sea".
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Dana is purchasing Petro Canada Netherlands from Petro Canada (International) Holdings, a subsidiary of Canada's largest energy company, Suncor Energy. The deal is expected to be closed in the third quarter of 2010.
Dana said that the deal would increase its 2010 production guidance by between 10 per cent and 12 per cent annually. The company estimates that its production would surge by 8,000-9,000 barrels of oil equivalent per day (boepd) in 2011, which is to a 20-25 per cent rise over the previous guidance.