Dana discovers oil in first Ghanaian exploration well

Dana Petroleum has announced the discovery of oil in its first exploration well offshore Ghana

Dana Petroleum has announced the discovery of oil in its first exploration well offshore Ghana. Oil flowed at the rate of 1,000 barrels a day, without the aid of gas pressure. Chief executive Mr Tom Cross said it was clean oil (without water) and data had indicated that future development wells could produce at much higher rates. The well is 20 miles off the coast of Ghana in 380 feet of water, and Dana is to study seismic data to determine the commercial significance of the discovery. A second well will be needed to indicate the size of the oil reservoir, but Mr Cross said the area has "very big sound structures".

He said proving hydrocarbons "within both the upper and lower cretaceous horizons confirms our belief that there is considerable potential in the Western Tano area, both in the shallow water and deep water objectives".

Dana has a 90 per cent stake in the project, while GNPC, the state petroleum corporation of Ghana, has 10 per cent. Mr Tsatsu Tsikata, chief executive of GNPC, said: "The well is important not only for what has been tested and encountered, but even more for heralding what we see as a new chapter in unearthing Ghana's exploration potential." He also said the reserves, near the North and South Tano fields, were "significant for our development plans".

GNPC can elect to increase its working interest to 25 per cent during commercial development. Drilling on the well has now been suspended pending its potential future use for oil production.

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The latest find represents Dana's fifth consecutive discovery worldwide in under two years. It has made oil or gas finds in its previous four wells, three in Europe and one in the Far East.