The transactions will be carried out as the first step in order to support Det Norske Oljeselskap's ambition to become the largest Norwegian independent E&P company on the Norwegian Continental Shelf (NCS). Det Norske Oljeselskap will immediately after the private placement be listed over the counter (OTC) with the intention to apply for a listing on the Oslo Stock Exchange within 12 months.
Det Norske Oljeselskap will embark on an aggressive growth strategy and create long-term shareholder values through organic growth and participation in the consolidation on the NCS.
Over the past years Det Norske Oljeselskap has expanded its portfolio and strengthened its organization with focus on Geology & Geophysics, Reservoir & Production as well as Drilling. Furthermore the recent structural changes in the Norwegian oil and gas industry open up for new growth opportunities. Det Norske Oljeselskap'`s high-potential license portfolio combined with its strong expertise and track record provides a solid foundation for its growth ambitions on NCS.
Det Norske Oljeselskap has an extensive drilling program scheduled from June 2007, targeting more than 250 mmboe (net unrisked resource potential) through 12 wells within 18 months. In addition Det Norske Oljeselskap has a 15% share in the Goliat license, the largest oil discovery made on NCS in more than 10 years.
Det Norske Oljeselskap intends to carry out a private placement and a subsequent offering so that DNO ASA will retain a minimum of 80% ownership in Det Norske Oljeselskap AS following the transaction.
The private placement, between NOK 427 million and NOK 538 million, will be directed toward existing shareholders, and external institutional and professional investors. The subscription price will be set through a book-building process and minimum subscription will be set at EUR 50,000. The subscription period in the private placement is expected to be June 13 through 20, 2007.
The subsequent offering will be directed at the shareholders in DNO ASA as of June 21, 2007, (Eligible Shareholders) that were not invited to subscribe for shares in the private placement, subject to restrictions set forth by certain jurisdictions.
The subsequent offering is expected to commence during August 2007 following approval of an offering prospectus by Oslo Bors.
A presentation prepared in connection with the private placement is attached.
Det Norske Oljeselskap has retained Pareto Securities as financial advisors in connection with the private placement and the subsequent offering.
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