As previously announced, DNO will be presenting its results for the second quarter and first half of 2004 on 18 August 2004.
The group's profit and loss statements for these periods will among other things be affected by the following:
Net sales gain resulting from the sale of certain Norwegian assets to Lundin Petroleum AB (see stock exchange notice of 18 June 2004) amounts to approx. NOK 100 million.
In keeping with the company's revised strategy, DNO's exploration and development activity remained high also in the second quarter. According to DNO's accounting principles for the company's oil and gas activities (Successful Efforts), investments in exploration projects, including seismic activity, field studies and dry wells, are expensed.
In the second quarter, a little over NOK 50 million were expensed as exploration costs, including NOK 13 million that were refunded in connection with the sale of Norwegian assets to Lundin and NOK 20 million relating to investment in exploration projects with a significant future value potential.
Based on the above, DNO's Board of Directors expects the net profit for the second quarter to be about NOK 100 million.