DNO International ASA - Agreements - Sale of shares in Det norske oljeselskap ASA

On 12 October, 2009, DNO entered into a Share Purchase Agreement (the "Agreement") with Aker ASA ("Aker") for the sale of up to 6 million shares in Det norske oljeselskap ASA ("Detnor"). The Agreement is based on the following transaction structure:
 
1. An unconditional sale by DNO to Aker of 1 million shares in Detnor for a price of NOK 49.90 per share, based on the closing price on Oslo Stock Exchange on 8 October, 2009. Completion of the Agreement with respect to the unconditional sale of 1 million shares in Detnor shall take place immediately.
 
DNO's new shareholding in Detnor will be 14,231,255 shares, representing 21.92% of outstanding shares.
 
2. A conditional sale by DNO to Aker of 5 million shares in Detnor for a price of NOK 49.90 per share, based on the closing price on Oslo Stock Exchange on 8 October, 2009, subject to the approval by the relevant competition authorities without conditions or on conditions reasonably acceptable to Aker. Completion of the Agreement with respect to the conditional sale of 5 million shares in Detnor shall take place upon granting of approval for the transaction by the competition authorities.
 
Subject to completion of the conditional sale of 5 million shares in Detnor, DNO's new shareholding in Detnor will be 9,231,255 shares, representing 14.22% of outstanding shares.
 
In 2007, DNO separated its subsidiary Det Norske Oljeselskap ASA with the objective of making the company the number 2 exploration and production company on the Norwegian Continental Shelf. In November, 2007, DNO merged the company with Petra to grow Detnor further. On 19 October, 2009 the general meeting of Detnor may approve the merger with Aker Exploration ASA.
 
Aker's purchase of shares in Detnor today will strengthen Detnor further as the number 2 company on the NCS by Aker increasing its stake in the company. DNO will continue to support Detnor and its strategy for further exploration and development on the NCS.
 
DNO will use the sale proceeds for general corporate purposes to support the Company's international developments.
 
DNO International ASA
13 October, 2009