Suncor divests Petro Canada Netherlands for $393 million to Dana Petroleum

UK-based oil and gas producer Dana Petroleum today announced the acquisition of Petro Canada Netherlands BV for approximately $393 million in order to expand intp Europe and complement its North sea asset.

Dana is buying Petro Canada Netherlands from Petro Canada (International) Holdings B.V, a wholly owned subsidiary of Suncor Energy, Canada's largest energy company.

The acquisition, which is Dana's largest acquisition to date, will boost its reserves by an additional 31 million barrels of oil equivalent.

Aberdeen-based Dana currently produces from 36 oil and gas fields across four countries and holds more than 100 interests in exploration and production licenses spanning nine countries.

Dana's activities are focused within its two core areas of Europe (North Sea) and Africa. In Africa, Dana has production, development and exploration interests across Egypt, oil and gas discoveries offshore Mauritania and Morocco, and additional exploration opportunities offshore Senegal and Guinea.

The acquisition will increase Dana's total number of producing oil and gas fields from the current 36 to 54 including 15 new offshore fields and 3 new onshore fields.

The acquisition will be effected through a sale and purchase agreement between Dana Petroleum and Petro Canada Holdings subject to shareholders approval of both companies and Dana is liable to pay a break-up fee of €8 million if its shareholders do not approve the deal.

Dana said that it has secured a $900 million term loan and revolving credit facility fro Royal Bank of Canada for funding the deal and for broader corporate refinancing.