DNO Bulks Up in Norway with Acquisitions, Exploration Success
02 September 2024 - 3:00PM
UK Regulatory
DNO Bulks Up in Norway with Acquisitions, Exploration Success
Oslo, 2 September 2024 – DNO ASA, the Norwegian oil and gas
operator, today announced the completion of the acquisition of
stakes in five oil and gas fields, including an operatorship, in
the Norne area in the Norwegian Sea from Vår Energi ASA. Following
closing, DNO’s wholly-owned subsidiary DNO Norge AS holds interests
in all producing and under development fields in the greater Norne
area, making it a core area for the Company on the Norwegian
Continental Shelf.
The transaction includes interests in four producing fields,
Norne (6.9 percent), Skuld (11.5 percent), Urd (11.5 percent) and
Marulk (20 percent and operatorship) plus the ongoing Verdande
development (10 percent). Prior to the transaction, DNO held
interests in Alve (32 percent), Marulk (17 percent), and Andvare
development (32 percent) in the Norne area.
Adjusting for cash flow between effective transaction on 1
January 2024 and completion on 30 August 2024, the net cash
consideration paid by DNO was approximately USD 24 million. The
transfer of DNO’s 22.6 percent interest in Ringhorne East to Vår
Energi, the other element of the swap, was completed on the same
date.
The transaction adds more than eight million barrels of oil
equivalent (MMboe) in reserves and resources net to DNO. In
terms of production, the acquired assets delivered approximately
3,000 barrels of oil equivalent per day (boepd) in the first half
of 2024, expected to rise to above 5,000 boepd in 2026 as the
Verdande contribution kicks in.
All fields in the Norne area are tied back to the
Equinor-operated Norne FPSO that came onstream in 1997. Oil
produced in the area is loaded from the FPSO to tankers for export,
while gas is exported by pipeline through the Åsgard Transport
System. Planned hub lifetime extends to 2036. With its expanded
area position, DNO has stepped up studies of near-field exploration
targets and infill well opportunities.
Coming on the heels of DNO’s acquisition of a 25 percent stake
in UK’s Arran field completed in May, the new Norne assets will
support a ramp-up in DNO North Sea’s production next year, together
with the restart of Trym (DNO 50 percent and operator) in the
fourth quarter of 2024 and start-up of Andvare (DNO 32 percent) in
2025.
Meanwhile, DNO continues its active exploration in the North Sea
with the ongoing drilling of the combined Heisenberg appraisal and
Angel exploration well (DNO 49 percent). Followed by Ringand (DNO
20 percent) and Falstaff (DNO 50 percent and operator) which are
expected to spud in September. DNO will today submit one of the
largest applications in the Company’s history for the upcoming APA
2024 licensing round, with awards expected during the first quarter
of 2025.
Last year, the Company was the third most active exploration
driller on the Norwegian Continental Shelf in number of wells
drilled and ranked second in discovered volumes with an estimated
100 MMboe net to DNO. Having prioritized near-infrastructure
exploration, DNO has been an early mover in acquiring substantial
acreage positions in selected areas which have since become
hotspots.
–
For further information, please contact:
Media: media@dno.no
Investors: investor.relations@dno.no
–
DNO ASA is a Norwegian oil and gas operator active in the Middle
East, the North Sea and West Africa. Founded in 1971 and listed on
the Oslo Stock Exchange, the Company holds stakes in onshore and
offshore licenses at various stages of exploration, development and
production in the Kurdistan region of Iraq, Norway, the United
Kingdom, Côte d'Ivoire, Netherlands and Yemen.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
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