DONG Ups Stake in Norway's Ula Field

DONG Energy has chosen to exercise its pre-emption right, and is increasing its stake in the Ula oil field from 5% to 20%. It is the license partner Svenska Petroleum Explorations AS that has decided to sell its stake in the field. The purchase price for Svenska's share of 15% is US $130 million - approx. DKK 620 million.

The Ula oil field is situated in the southern Norwegian part of the central North Sea and, together with the Gyda and Tambar fields, makes up the so-called UGT area, which is one of DONG Energy's core areas within exploration and production. Ula today functions as production platform for the Tambar and Tambar East fields. The additional share in the Ula field will increase DONG Energys' 2P-reserves by approximately 13 million boe. In addition, the extraction potential will be increased significantly due to, amongst other things, further utilization of water and gas injection within the field.

The Ula field has a long life expectancy and could consequently become central to the development of other fields in the area, including the discovery of Oselvar, where DONG Energy earlier this year completed a successful appraisal drilling.

"With this acquisition, we are securing additional oil production and reserves while at the same time increasing our ownership interest in a centrally located field in relation to maturing and expansion of our other licenses in the area," said Soren Gath Hansen, Executive Vice President in DONG Energy and responsible for the exploration and production activities.

The acquisition depends on final approval from the Norwegian Ministry of Petroleum and Energy and from the Norwegian Ministry of Finance.