DNO Completes Acquisition of 25 Percent of UK’s Arran Field
May 16 2024 - 1:00AM
DNO Completes Acquisition of 25 Percent of UK’s Arran Field
Oslo, 16 May 2024 – DNO ASA, the Norwegian oil and gas operator,
today announced the completion of the acquisition of a 25 percent
interest in the Arran field on the UK Continental Shelf by the
Company’s wholly-owned subsidiary DNO Exploration UK Limited from
ONE-Dyas E&P Limited. The field is operated by Shell UK Limited
(44.57 percent) and was brought on stream in 2021 as a subsea
tie-back to the Shell-operated Shearwater A platform.
DNO’s share of production of gas (principally) and liquids from
Arran during the first four months of 2024 averaged 3,150 barrels
of oil equivalent per day (boepd), up from the 2,000-2,500 boepd
projected at the transaction announcement in February. Since
announcement in February, drilling of the AN-4 infill well has been
completed on time and budget; the well is scheduled to commence
production later this year.
Adjusting for interim cash flow from effective date 1 January
2024 to the completion date 15 May 2024, the consideration paid
upon completion was approximately USD 60 million. Arran is expected
to have a short payback period and the Company anticipates
financial synergies between Arran and DNO’s existing position in
the UK. The contingent consideration of USD 5 million that was
payable if certain operational targets were met will not be
paid.
“Together with our recently announced acquisition of interests
in multiple fields in the Norne area offshore Norway, Arran brings
balance to our North Sea business by adding production to
complement a strong development and exploration portfolio,” said
Chris Spencer, DNO’s Managing Director. “Combined, the two
transactions add more than 12 million barrels of oil equivalent and
5,000 boepd of production net to DNO, growing to more than 7,000
boepd by 2026,” he added.
Last year, DNO was the third most active exploration driller on
the Norwegian Continental Shelf and ranked second in discovered
volumes with an estimated 100 MMboe net to the Company. Now the
Company is gearing up its exploration efforts also on the UK
Continental Shelf. In October 2023, DNO was awarded a 50
percent operated interest in Blocks 9/9f, 9/10c, 9/14c and 9/15d in
United Kingdom’s 33rd Offshore Licensing Round, adjacent to
the Norwegian border.
–For further information, please
contact:Media: media@dno.noInvestors: investor.relations@dno.no–
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.
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