DNO have signed a loan agreement for establishment of a USD 100 mill. Revolving Credit Facility with ANZ Investment Bank, the investment banking division of Australia and New Zealand Banking Group Limited ("ANZ") in London.
The Loan Agreement is important for the continued growth and value creation for DNO. The development of the Broom Field will increase the Company's oil production and cause a substantial decrease of the production costs per barrel in the UK.
The loan agreement with ANZ has a maturity of seven years, and will, in addition to financing the Broom Field secure financing of DNO's share of the development of the Seven Heads-field in Ireland, as well as re-financing of existing bank loan.
Licenses and other DNO assets secure the ANZ-facility. The loan agreement is based on competitive terms for reserve-based loans in the international banking market.
28th August 2003
Helge Eide, Managing Director
Haakon Sandborg, CFO
Phone: (+47) 55 22 47 00 / (+47) 23 23 84 80