Dana Petroleum has realised £21.05 million sterling (€30.5 million) from the sale of some of its UK assets and compensation from the release of a gas contract. The proceeds will be used to finance Dana's growth programme over the next 12 months and to reduce debt, according to Dana.

The sale consists of a 5 per cent stake in the Victor Gas Field to Centrica Resources and a 10.5 per cent interest in the UK offshore blocks 110/3b and 110/3c to Hydrocarbon Resources, for a total of £9.75 million. In addition, it has renegotiated its "take or pay contract" with British Gas Trading, over its 10 per cent stake in the Victor field, and was paid £11.3 million compensation. The book value of the assets in the transactions is £7.5 million, so they have been sold at a substantial premium. The attributed profit is £100,000.

Dana's chief executive, Mr Tom Cross, said the group continues to grow asset value in a period of sustained low oil prices. The cash proceeds will reduce gearing to 3 per cent and "unlock our upside potential in low cost areas".