LONDON- British oil and gas explorer Dana Petroleum has agreed to acquire a 50 per cent stake in a concession off the coast of Egypt from BG Group , boosting its exploration prospects in the North African country. Dana said on Wednesday it had agreed to fund the cost of the next exploration well, which is planned for early 2011, up to an agreed cap in order to earn the 50 per cent interest in the El Manzala Offshore Area Concession. Aberdeen, Scotland-based Dana is currently in talks with oil company Korea National Oil Corp , after receiving a preliminary takeover approach from the South Korean state-run company at the beginning of July. "This further extends Dana's strategic position and growth opportunities across Egypt, where we are already 50/50 partners with GDF Suez in the western area of the Nile Delta," said Chief Executive Tom Cross in a statement. Dana has made two gas discoveries off the coast of Egypt but in June the Bamboo well, seen by analysts as key to its exploration programme, disappointed the market as it did not find oil. Shares in Dana, which have risen by 28 per cent in the last month, closed at 1,471 pence on Tuesday, valuing the company at 1.4 billion pounds ($2.14 billion).