DNO Acquires New Bond Loan Funding

DNO has signed a new NOK 1 billion bond loan agreement and additional drawdowns under existing bond loan facilities.

On February 27, 2006, DNO ASA signed a new bond loan agreement for a facility in an amount up to NOK 1 billion. The new facility has been signed with Norsk Tillitsmann ASA as trustee for the bondholders.

The new bond loan facility is structured as a senior unsecured NOK loan, with five-year maturity and a floating interest rate based on three months Nibor + 2.5%. The initial issue under the loan facility is for an amount of NOK 200 million.

Loan funding will take place on March 2, 2006. The loan is issued at par (100%). DNO has a call option after three years on the loan.

DNO has applied for listing of the new bond loan on the Oslo Stock Exchange.

As of February 27, 2006, DNO has also received NOK 400 million in commitments for additional drawdowns under existing bond loan facilities. The additional drawdowns are split between NOK 280 million under DNO 06 ISIN NO 001 028372.4 and NOK 120 million under DNO 07 ISIN NO 001 028373.2. Both loans mature in 2012. Loan funding will also take place on March 2, 2006.

The new bond funding will secure long-term financing for DNO in connection with the repurchase of bonds under loan facilities DNO 03 and DNO 04, as well as additional financing for the development of DNO's extensive portfolio of petroleum licenses.

Fearnley Fonds ASA has acted as mandated arranger of the new bond loan funding. The bond issues have been sold to both domestic and international investors.


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