Dana Petroleum, currently being stalked by Korea National Oil Corporation, has issued another upbeat announcement.
KNOC has offered £18 a share for Dana - valuing the company at £1.67bn - and is said to be close to finalising funding for the deal. Dana has advised shareholders to take no action and is believed to be holding out for a higher bid of perhaps £20. Today Dana announced it had discovered a new oil field in Egypt, with its Fin-1X finding good quality oil bearing sands. It estimated reserves of 10 to 12 million barrels of oil from the discovery, along with the nearby Lorcan discovery. Nick Copeman at Oriel Securities said:
Following this update our risked net asset value stands at 1278p a share with a further 321p per share of EMV. We retain our hold recommendation pending clarity on the bid situation.
Dana shares are 3p higher at £17.13 following the news.
