DNO Subsidiary Secures Finance Deal for NCS Exploration
Det Norske Oljeselskap AS, a wholly owned subsidiary of DNO ASA, has entered into a NOK 300 million loan agreement with the Bank of Scotland. The loan facility will provide pre-funding of state tax refunds related to DNO's Norwegian Continental Shelf ("NCS") exploration expenditures.
DNO has expanded its position in Norway substantially over the past few years and it is now one of the company's core areas. The Company holds a diversified portfolio of 22 licenses on the NCS.
DNO's primary focus is smart exploration, cost effective development and high margin production, where oil prospects are the current priority of the Company. DNO has a strong commitment as an active player at NCS and the Company is planning to participate in 7 exploration wells in 2007, of which 3 are as Operator.
In order to diversify and expand its debt funding options, DNO is pleased to announce the signing of a new NOK 300 million bank loan facility, which will support its extensive NCS exploration program. The new loan facility will be used to finance the tax refund value for exploration expenses incurred by DNO on the NCS. The competitive terms and conditions of the loan facility make this type of financing an attractive supplement to other debt financing alternatives.
DNO also views the new loan facility as an opportunity to further strengthen its relationship with the Bank of Scotland, one of the leading European energy banks.
Managing Director Helge Eide comments:<>
"DNO is pleased with the new loan facility which supports our exploration strategy for Norway. We are engaged in high exploration activity on the NCS, and the loan facility will further strengthen funding of our exploration investments."
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