Dacian Petroleum
LOCATION EU | YEAR Q2 2021 | % HOLDING 32% | NAV £7.3 MILLION
Dacian is a Romanian oil and natural gas production company operating 40 late life onshore fields, which it acquired in 2020. The acquisition plus working capital required some $20 million of funding of which 70% was provided by investors, of whom LMS was the lead, and 30% through external debt.
Dacian initially performed well and has repaid its external acquisition debt. In 2024 and 2025 Dacian has not met its internal production targets and the oil price environment has softened, negatively impacting its cashflows.
Changes have been implemented at Dacian in 2025 with a new leadership team appointed and both Board and operational support from experienced industry executives.
The new team has developed a detailed plan for H2 2025 and 2026 of which the key elements are:
- Investment in inventory of components and implementation of a maintenance plan to reduce the frequency of equipment failures and interruptions to production;
- A programme of well workovers and interventions, evaluated and risk adjusted in accordance with industry best practice, to enhance production;
- Monetising some unutilised land and equipment held by Dacian;
- Implementation of cost efficiency measures;
- Evaluating an identified set of additional development projects within Dacian's existing fields that would be attractive to external capital; and
- Working with partners in the development of other opportunities including in clean energy initiatives.
LMS original investment was $9.1 million for which it held 32% of Dacian's equity. It has agreed to advance a further $5.3 million to finance the 2025/26 plans. Further advances will take the total investment to $14.4 million and under the terms agreed LMS will hold 67.4% of Dacian's equity.