Reference is made to a Stock Exchange Notice released by Petrolia ASA on 24 October 2011 under the heading: "Reject RAK-DNO merger or risk taken on decommissioning liabilities that could exceed several hundred million dollars"
The notice from Petrolia contains clear misinterpretations and false accusations and falls in line with other disinformation being distributed by Petrolia on several occasions during the past weeks.
The Board of Directors of DNO International ASA has discussed this in an extraordinary board meeting today and wish to make the following statements:
The Board of Directors stands behind the proposed merger and the comprehensive due diligence and valuation protocols and procedures that led up to the proposal that has been presented to shareholders.
The merger is fully consistent with DNO's long standing growth strategy and marks the first step towards becoming a significantly larger player in the MENA region.
During the process arriving at recommending the merger to our shareholders, DNO has had strong focus on proper corporate governance. A wide group of external advisers have assisted the Company in providing their independent and objective views and input in order to arrive at fair relative valuations to be used for the merger.
"The board is confident that the merger plan that has been proposed will be beneficial to our Company, employees and all shareholders" stated Gunnar Hirsti, the vice chairman of DNO International ASA.
Mr. Hirsti continues, "We are very puzzled about the strong opposition and also the nature of the allegations now being made by the former chairman of the Company as he was one who initiated and actively promoted the merger for a significant period of time."
For the clarification and corrections to the false information distributed by Petrolia, we attach for reference a release issued today by RAK Petroleum PCL.
Oslo, 25 October 2011
DNO International ASA
Board of Directors
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)