DNO Acquires Operatorship of Onshore Mozambique Block

DNO has acquired an 80% interest and operatorship in an exploration license, the Inhaminga Block, onshore Mozambique close to the city of Beira. An Exploration and Production Contract (EPC) was signed on June 27th with the Ministry of Mineral Resources and Energy in the capital Maputo with an initial contract commitment to drill an exploratory well to the base Grudja formation within a period of 18 months. Sands in the Grudja formation represent the producing reservoirs of the Pande and Temane gas fields presently being developed by Sasol some 200 kilometers south of the Inhaminga block. US-based exploration firm, Wilrusco, holds the remaining 20% of the license.

The authorities of Equatorial Guinea have ratified the agreement earlier negotiated by a consortium consisting of Ocean Energy (now Devon Energy), Petronas, Atlas Petroleum and DNO for the Block P offshore Rio Muni in Equatorial Guinea. The state owned company, GePetrol, has been assigned an interest of 20%. DNO's participating interest is 5.0% with a paying interest (exploration) of 6.25%.