DNO Bulks Up in Norway with Acquisitions, Exploration Success
Oslo, 2 September 2024 – DNO ASA, the Norwegian oil and gas operator, today announced the completion of the acquisition of stakes in five oil and gas fields, including an operatorship, in the Norne area in the Norwegian Sea from Vår Energi ASA. Following closing, DNO’s wholly-owned subsidiary DNO Norge AS holds interests in all producing and under development fields in the greater Norne area, making it a core area for the Company on the Norwegian Continental Shelf.
The transaction includes interests in four producing fields, Norne (6.9 percent), Skuld (11.5 percent), Urd (11.5 percent) and Marulk (20 percent and operatorship) plus the ongoing Verdande development (10 percent). Prior to the transaction, DNO held interests in Alve (32 percent), Marulk (17 percent), and Andvare development (32 percent) in the Norne area.
Adjusting for cash flow between effective transaction on 1 January 2024 and completion on 30 August 2024, the net cash consideration paid by DNO was approximately USD 24 million. The transfer of DNO’s 22.6 percent interest in Ringhorne East to Vår Energi, the other element of the swap, was completed on the same date.
The transaction adds more than eight million barrels of oil equivalent (MMboe) in reserves and resources net to DNO. In terms of production, the acquired assets delivered approximately 3,000 barrels of oil equivalent per day (boepd) in the first half of 2024, expected to rise to above 5,000 boepd in 2026 as the Verdande contribution kicks in.
All fields in the Norne area are tied back to the Equinor-operated Norne FPSO that came onstream in 1997. Oil produced in the area is loaded from the FPSO to tankers for export, while gas is exported by pipeline through the Åsgard Transport System. Planned hub lifetime extends to 2036. With its expanded area position, DNO has stepped up studies of near-field exploration targets and infill well opportunities.
Coming on the heels of DNO’s acquisition of a 25 percent stake in UK’s Arran field completed in May, the new Norne assets will support a ramp-up in DNO North Sea’s production next year, together with the restart of Trym (DNO 50 percent and operator) in the fourth quarter of 2024 and start-up of Andvare (DNO 32 percent) in 2025.
Meanwhile, DNO continues its active exploration in the North Sea with the ongoing drilling of the combined Heisenberg appraisal and Angel exploration well (DNO 49 percent). Followed by Ringand (DNO 20 percent) and Falstaff (DNO 50 percent and operator) which are expected to spud in September. DNO will today submit one of the largest applications in the Company’s history for the upcoming APA 2024 licensing round, with awards expected during the first quarter of 2025.
Last year, the Company was the third most active exploration driller on the Norwegian Continental Shelf in number of wells drilled and ranked second in discovered volumes with an estimated 100 MMboe net to DNO. Having prioritized near-infrastructure exploration, DNO has been an early mover in acquiring substantial acreage positions in selected areas which have since become hotspots.
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DNO ASA is a Norwegian oil and gas operator active in the Middle East, the North Sea and West Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Norway, the United Kingdom, Côte d'Ivoire, Netherlands and Yemen.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
