Dana Petroleum Plc, a British oil and gas company, said today that it has agreed to acquire Petro Canada Netherlands from Petro Canada (International) Holdings, a subsidiary of Canada's Suncor Energy in a deal worth about £270 million. This is reported the biggest ever acquisition in the history of Dana.

Dana Petroleum said that the acquisition of Petro Canada would allow the company to boost its reserves and production.

According to the deal, Dana will pay around £270 million to Petro Canada (International) Holdings. The acquisition is expected to close in the third quarter of the year 2010. Dana said that the deal is now subject to approval from its shareholders.

Dana said that it expects a growth of 10%-12% in its production guidance for the year 2010 after completion of the deal. The company also said that it expects its proved and probable reserves to grow by 12.2% to 254 million barrels of oil equivalent after the deal.

According to Dana, its output will grow by 8000-9000 barrels of oil equivalent per day in the year 2011, a 20-25 percent gain on the previous guidance, and by 10000-14000 barrels of oil equivalent per day in the year 2012.