Dana Petroleum: Shares in the Aberdeen-based oil and gas exploration firm fell to a year low before recovering slightly after it cut its expected targets for this year. That move was prompted by a lower-than-expected output from the North Sea.

The company said in an interim management statement that production in the UK had been hit by extended platform shutdowns due to maintenance and unplanned work on other fields.

Dana said production for 2008 is expected to average 39,000-40,000 barrels of oil equivalent per day (boed), compared with a target of 40,000-45,000 boed.

However, it said it was well funded to continue with a work programme expected to boost future output. The reverses were offset by higher than expected output from business in Egypt, helped by boosting production from existing wells.

The company said its capital investment for 2008 will be in excess of £170m. It has now fully repaid its bank debt, having repaid £50m since August 2008.

Dana said it still plans an active exploration and development programme, despite a fall in the oil price. In addition to drilling up to 15 wells in the North Sea and North Africa in 2008, the company has contracted rigs to drill 14 in 2009.

It expects to start production from the Grouse field in the North Sea early next year and recently successfully bid for 11 exploration licences in the North Sea.

Its share price ended the week on 641.5p.

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