DNO Expands its Norwegian Continental Shelf Portfolio

DNO has signed agreements to acquire five licenses on the Norwegian Continental Shelf (NCS). The new portfolio of licenses contains several hydrocarbon discoveries and prospects.

DNO has signed a Sales and Purchase Agreement with ExxonMobil Exploration and Production Norway AS to acquire the following license interests on the NCS:

PL 029B - 20% and operatorship subject to approval (includes Gere and Freke Prospects)
PL 265 - 25% (includes Ragnarrock Discovery)
PL 028B - 50% (includes the Hanz Discovery)

PL 001B/242 - 50% and operatorshi subject to approval (includes the West Cable discovery and West Cable North and Draupne Prospects)

DNO has also signed a SPA with Norske Shell to acquire 15% working interest of PL 265 (including the Ragnarrock discovery, which increases DNO's working interest to 40% in PL 265.

And finally, DNO has signed a SPA with ChevronTexaco Norge AS to acquire their 30% working interest in PL263 - in Blocks 6507/10 and 6507/11.

The effective date of the transfers is January 1, 2005, and the transactions are subject to approval from the relevant Norwegian authorities and the Management Committees of the licenses.

Managing Director Helge Eide comments:

"DNO is very pleased to have secured this exciting portfolio of licenses on the NCS. The Company sees an interesting potential within the licenses both with respect to the existing discoveries and various prospects."

Following the above transactions DNO has expanded its license portfolio on the NCS to 13 licenses. This portfolio forms a solid basis for DNO to further grow its business on NCS in the years to come.