Dana Petroleum has signed two onshore offshore exploration agreements in Morocco. In the first deal, the company would acquire a 15% working interest in the Repsol operated Tanger-Larache Blocks 1, 2 and 3 offshore Morocco while relinquishing 3% of its interest in Blocks L5 AND L7 offshore Kenya to Repsol. In the Bouanane Reconnaissance Contract License area, onshore Morocco Dana acquired 50% working interest to become the operator while the original lease holders Tethys Oil AB (“Tethys”) and Eastern Petroleum (Cyprus) Limited (“Eastern”) parted with 2.5% and 25% respectively. The TangerLarache blocks cover some 5,495 square kilometres, with water depths ranging up to 600 metres. The co-venturers have already acquired some 520 square kilometres of 3D seismic aimed at refining exploration prospects for drilling. Seismic data indicates a number of high-potential prospects within a relatively short distance of the coast and with a nearby gas-fired power station and indigenous market for gas, the block stands as a potential for development. Following completion of the transaction the Tanger-Larache partners will be Dana 15%, Repsol 30% (operator), Gas Naturel 30% and Moroccan state organisation ONHYM 25%. The Block L5 and L7 partners will be Dana 27%, Woodside 30% (operator), Repsol 23% and Global 20%.
