DNO ASA’s wholly-owned subsidiary DNO Exploration UK Restricted is buying a 25 p.c curiosity within the Arran area on the UK (UK) Continental Shelf from ONE-Dyas E&P Restricted.
The transaction is anticipated so as to add round 4 million barrels of oil equal web to DNO, consisting of 90 p.c fuel, with projected web 2024 manufacturing of two,000 to 2,500 barrels of oil equal per day (boepd).
The money consideration for the transaction is $70 million, plus a contingent consideration of as much as $5 million if sure operational targets are met, DNO stated in an announcement Tuesday. The efficient date of the acquisition is January 1 and the transaction is anticipated to shut within the second quarter of 2024, topic to regulatory approval.
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The Arran area began manufacturing in 2021 as a subsea tie-back to the Shearwater A platform, each operated by Shell U.Ok. Restricted. Fuel from Arran is exported through the Fulmar Fuel line on to the St. Fergus Terminal, whereas liquids are exported to Cruden Bay through the Forties Pipeline System, based on the discharge.
“Arran suits neatly in our technique of buying bolt-on producing property as we develop our vital discoveries in Norway”, DNO Managing Director Chris Spencer stated. “The corporate expects monetary synergies between Arran and DNO’s present place within the UK”.
With the transaction, DNO stated it continues to develop a North Sea portfolio that features 14,200 boepd of present manufacturing, which comes virtually completely from fields in Norway. The corporate expects manufacturing to develop because it brings into operation its ongoing improvement tasks, notably Trym Restart, the place DNO owns a 50 p.c stake and is the operator; Andvare, the place it owns 32 p.c; and Berling, the place it owns 30 p.c.
DNO added that its “exceptionally profitable” exploration program delivered 4 extra discoveries and two profitable appraisal wells in Norway final 12 months.
In the meantime, DNO Norge AS secured participation in 14 exploration licenses, of which three are operatorships, below Norway’s Awards in Predefined Areas (APA) 2023 licensing spherical. Of the 14 new licenses, 10 are within the North Sea and 4 within the Norwegian Sea, based on a separate assertion.
Below the newest licensing spherical, DNO Norge was provided participation in PL 644 D, PL 1102 B, PL 1148 CS, PL 1198, PL 1203, PL 1205, PL 1212, PL 1213, PL 1226, PL 1228, and PL 1229. The corporate may also function PL 1204, PL 1209, and PL 1216.
On the finish of 2023, DNO held pursuits in 73 licenses offshore Norway, of which 13 had been operated by the corporate, it famous.
The Norwegian Ministry of Power provided 62 new manufacturing licenses on the Norwegian Continental Shelf within the APA 2023 licensing spherical, in comparison with 47 within the earlier 12 months.
Awards in Predefined Areas (APA) is an annual exploration spherical for probably the most mature areas of the Norwegian Continental Shelf. Of the 62 manufacturing licenses provided in APA 2023, 29 are positioned within the North Sea, 25 within the Norwegian Sea, and eight within the Barents Sea.
A complete of 24 oil firms had been provided half in a number of of the licenses, and 16 firms had been provided a number of operatorships. A binding work program is linked to all of the licenses.
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