However, the results of the two wells indicated that the oil-bearing reservoir was thinner than expected, meaning that the find may be smaller than hoped.
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WELL-DRILLED: Dana Petroleum chief executive Tom Cross said two wells have proved the existence of petroleum.
Aberdeen-based Dana, led by chief executive Tom Cross, said the two wells drilled by its Norwegian partner, Det norske oljeselskap ASA, had proved the existence of petroleum in the reservoir rocks dating from the Paleocene Age.
The finds were made around four kilometres from the producing Jotun oil field in which Dana has an interest.
This means they are close to production infrastructure to which they could be tied back, reducing the cost of developing the field.
Dana said: “Further work needs to be carried out to evaluate the commerciality of the Jetta accumulation in conjunction with other fields.”
Norway has become a key territory for Dana since the company acquired its first acreage in the country’s waters in 2007.
Oil and gas companies benefit from generous tax breaks on their exploration activity in Norway. As a result, the costs of unsuccessful drilling are limited. Shares in Dana closed down 4%, or 53p, at 12.04p.
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