Bid target Dana Petroleum sees profits soar by 274%

Dana operates mainly in the North Sea, which accounts for 81% of production

Aberdeen-based Dana Petroleum, which is the target of a hostile takeover bid, has announced an increase in profits.

Dana made £82m in the first half of this year, an increase of 274% on the same period last year.

A bid for the Scottish oil and gas explorer was made last month by South Korea's state-owned oil company Knoc.

Dana has rejected the £18 per share offer which was 59% above its share price before Knoc's interest was first announced.

Dana said it would make a detailed response to the offer no later than 8 September.

In the meantime, it urged shareholders to take no action.

Dana operates mainly in the North Sea, which accounts for 81% of production, although its also has facilities in Egypt and West Africa.

In the first six months of the year, the company drilled 12 exploration wells which resulted in six discoveries.

Its chief executive, Tom Cross, said: "The Dana team is delivering the most successful phase of growth in the company's history.

"With a full programme of exploration, production growth and development activity planned for the second half this trajectory is set to continue upward."