Dana May Expand Acquisition Loans to $1.2 Billion After North Sea Purchase

Dana Petroleum Plc, a U.K. oil and gas explorer, said it will increase existing acquisition loans to as much as $1.2 billion from $900 million to fund the acquisition of Suncor Energy Inc. assets.

Dana said today it agreed to buy production hubs in the North Sea from Suncor’s Petro-Canada UK Ltd. for 240 million pounds ($370 million).

Lenders led by Royal Bank of Canada agreed to increase credit lines signed in July for Dana’s acquisition of Suncor’s exploration rights in the Dutch section of the North Sea, Dana said today in a statement.

The enlarged facilities will also help Dana fund exploration expenditures and repay its convertible bonds if investors decide to sell the notes back to the Aberdeen-based company in July 2012, Dana said.

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

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