Thomas Cross (CFO) and David McFarlane (CFO) pretty much called the top on Dana in June this year when they exercised options to buy shares at 236p and 414p respectively, and then sold them at 1886p and 1881p respectively.

They took GBP 4 million and GBP 1.76m respectively out of Dana Petroleum (DNX, 1037p) within 5% of the high (1972p in May).

So it is interesting to see a whisper of positive news just this last week as two directors buy shares.

Brian Johnston, a non exec, on October 8th bought 6000 shares at 908p, inititaing a position in the company.

Two days later, on October 10th, Stuart Paton, the Technical and Commercial Director, bought 9179 shares at 894p, taking his position to 32,529 shares.

Between them they have committed GBP 137k to the company, which is minimal when compared with the money taken out by the CFO and CEO in June.

It is however an important signal to investors, which may establish a level of support for the shares.

Please also note that we have recently seen hesitant director purchases in other natural resources stocks including Xstrata, Cairn Energy, and Premier Oil.

View on Dana: Positive, Directors are buying shares

Strength of Signal: Medium

See comment of October 19th: Dana Petroleum – CEO invests at 853p having sold at 1886p in June.