DNO ASA - Det Norske Oljeselskap AS targeting the number two position on NCS

Det Norske Oljeselskap will embark on an aggressive growth strategy and create long term shareholder values through organic growth and participation in the consolidation on the Norwegian Continental Shelf (NCS).
Over the past years Det Norske Oljeselskap has expanded its portfolio and strengthened its organisation with focus on Geology & Geophysics, Reservoir & Production as well as Drilling. Furthermore the recent structural changes in the Norwegian oil and gas industry open up for new growth opportunities. Det Norske Oljeselskap's high potential license portfolio combined with its strong expertise and track record provides a solid foundation for its growth ambitions on NCS.
Det Norske Oljeselskap has an extensive drilling program scheduled from June 2007, targeting more than 250 mmboe (net unrisked resource potential) through 12 wells within 18 months. In addition Det Norske Oljeselskap has a 15% share in the Goliat license, the largest oil discovery made on NCS in more than 10 years. 
Det Norske Oljeselskap intends to carry out a private placement and a subsequent offering so that DNO ASA will retain a minimum of 80% ownership in Det Norske Oljeselskap AS following the transaction.
The private placement, between NOK 427 million and NOK 538 million, will be directed towards existing shareholders, and external institutional and professional investors. The subscription price will be set through a book-building process and minimum subscription will be set at EUR 50,000. The subscription period in the private placement is expected to be 13 June 2007 through 20 June 2007.
The subsequent offering will be directed at the shareholders in DNO ASA as of 21 June 2007 ("Eligible Shareholders") that were not invited to subscribe for shares in the private placement, subject to restrictions set forth by certain jurisdictions.
The subsequent offering is expected to commence during August 2007 following approval of an offering prospectus by Oslo Børs.
A presentation prepared in connection with the private placement is attached.
Det Norske Oljeselskap has retained Pareto Securities as financial advisors in connection with the private placement and the subsequent offering.
12 June 2007