DNO is pleased to announce that it has finalised arrangements with BP and Conoco to acquire Operatorship and a 99 percent interest in the Thistle and Deveron Fields in UKCS Block 211/18.  In addition, DNO is acquiring various levels of interest in the Northern North Sea oil and gas pipeline infrastructure sufficient to transport some 15,000 barrels of oil per day to the Sullom Voe Terminal.
The Effective Date of the transaction is 1st May 2002.  Completion is expected by end 2002 and is subject to certain conditions including regulatory and DTI approvals and completion of associated legal agreements. A feature of the transaction is that at some time in the future, ownership will be re-transferred back to BP and Conoco who will be responsible for decommissioning the Thistle facilities.
Commenting upon the transaction DNO's Chief Executive said "This is a further positive step in the development of DNO's UK business.  The impact of the arrangements is to increase net UK production to around 10,000 barrels of oil per day and raises the company's UK Proven and Probable Reserves by some 20 million barrels of oil to a total of 80 million barrels.  This should be compared to a net production level of around 800 barrels per day and reserves of less than three million barrels when DNO first became a UK Operator in 1997".  He also added "All credit should be given to the Thistle Workforce for helping to get us to this stage. DNO plans to build upon this performance with a view to extending the life of the field and increasing ultimate oil recovery".
Energy Minister, Brian Wilson, said:
"DNO relish the challenges involved in managing production from maturing North Sea fields and their successful stewardship of another maturing asset, Heather, is an excellent example of how to maximise production from such fields. This new acquisition would allow DNO to extend their North Sea operations, and I hope it will also enable BP and Conoco to re-focus on other UKCS activities, including working up new areas and enhancing production from existing fields.
For further information please contact:
Mr. Helge Eide
Group Managing Director DNO ASA
Telephone : 0047 55224700
Dr Stewart Watson
Chief Executive DNO Britain Limited
Telephone: (01224) 578032