Although the Board of Dana Petroleum remains highly confident in the standalone prospects of Dana, the Board recognises there are risks to Dana shareholders of remaining as a minority shareholder in Dana in light of KNOC's stated intention to procure that Dana cancels both its listing on the UKLA's Official List and its admission to trading on the London Stock Exchange if sufficient acceptances of the Share Offer are received, as set out in the KNOC Offer Document.

For this reason, the Board, which has been so advised by RBS Hoare Govett, RBC Capital Markets and Morgan Stanley, now recommends that shareholders accept the Share Offer, as the Board intends to do in respect of its own beneficial holdings.

KNOC have stated that the Share Offer is extended and will remain open for acceptance until further notice and at least 14 days' notice will be given by announcement before the Share Offer is closed. Full details of how to accept the Offer in respect of certificated and uncertificated Dana Shares are set out in the KNOC Offer Document and, in the case of certificated Dana Shares, the accompanying Form of Acceptance.

Colin Goodall, Chairman of Dana commented, "Dana is an excellent Company which has a bright future and would have continued to grow strongly as an oil and gas independent. However, in light of KNOC's stated intention to de-list the Company, we are reluctantly recommending that shareholders accept KNOC's offer because we believe that this is now in the best interests of the significant number of Dana shareholders who have supported the Company and not yet accepted.

Dana started as a private company with funding of less than £1 million. It moved onto the Official List of the London Stock Exchange in 1996 with a market capitalisation of just £24 million and Dana now has a market value of over £1.9 billion.

This outstanding creation of value is testament to the truly exceptional leadership, intelligence and integrity of Tom Cross, who has driven the Company forward since inception, and the remarkable skills, knowledge and experience of the Dana team. Dana's personnel across the world can be very proud of what they have achieved."

Tom Cross, Dana's Chief Executive Officer, commented, "I would like to take this opportunity to thank all our shareholders, large and small, for their support in building Dana as a public company. Exceptional returns have been delivered to shareholders through the expertise and dedication of our highly committed team of oil industry professionals.

Dana has developed into a very strong and growing E&P business with over 100 interests spanning nine countries, including substantial OECD production and reserves and major exploration upside.

We will work closely with KNOC to ensure all our production, development and exploration projects continue to move forward expeditiously to maximise the economic benefits for all the stakeholders, including KNOC, our industrial partners and the host governments with which we work. KNOC is acquiring a great portfolio of assets with an excellent management team and I believe that the business will continue to flourish under KNOC's ownership."

Tags: Dana Petroleum