Dana Petroleum plc announced that its wholly owned subsidiary, Dana Petroleum (E&P) Limited, has signed an agreement with Devon Energy Corporation to acquire Devon's entire upstream petroleum business interests in Egypt spanning eight companies and eight Production Sharing Contracts ("Devon Egypt").
The purchase price at the effective date of 1 January 2007 is $375 million. In addition to receiving the oil and gas production and exploration assets of Devon Egypt, Dana will also gain approximately $67 million of working capital in Devon Egypt as at the effective date. Dana will pay the net consideration of approximately $308 million in cash (as adjusted at completion for ongoing 2007 production income and expenditure) via a newly arranged banking facility with ABN AMRO Bank. During 2006, Devon Egypt had working interest production of approximately 12,300 barrels per day, and USGAAP operating profits of approximately $53 million. At the end of 2006 gross assets were approximately $242 million.
