STOCKS NEWS EUROPE-Dana shares up on latest North Sea discovery

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07:55GMT 12May2008-Dana shares up on latest North Sea discovery

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Shares in Dana Petroleum (DNX.L: Quote, Profile, Research) climb 8.6 percent after the oil and gas explorer says it has discovered oil at the East Rinnes field in the UK Northern North Sea, following on from its discovery at West Rinnes last month.

"The two discoveries have significantly derisked follow-on prospects in the area around Melville and Hudson which we expect to be targeted either later in the year or more likely 2009," Oriel Securities analyst Richard Rose says in a note.

"The shares will go higher today although tempered by the fact that the discovery may not be as big as pre-drill hopes. Given the strength of oil prices and drilling ongoing in Egypt on the key West El Burullus licence we see scope for further upside in the short-term and see Dana as a trading 'Buy'," he adds. For company statement [ID:nRnsL1550U]

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