Reference is made to DNO's 2008 Annual Report, Note 27 and to articles in Norwegian media today regarding the proceeds from the sale of treasury shares on 10 October 2008.
This note describes the consideration received from the sale of 43.873.960 treasury shares at a price of NOK 4 per share on 10 October 2008. The sale contributed with NOK 175.3 million net after standard broker fees paid to our Norwegian broker.
The shares were registered in two separate VPS accounts, and two sales notes were issued for NOK 169.7 million and NOK 5.7 million, respectively. Unfortunately the information in note 27 to the 2008 Annual Report for 2008 by an error only reflected the first sales note of approximately NOK 170 million. The correct figure for the information in note 27 is NOK 175.3 million.
In the 2008 Annual Report, the sale of treasury shares has been considered as an equity transaction, and has been accounted for accordingly. NOK 175.3 million has been received by DNO and recorded as cash with a corresponding entry to equity.
Although this is a minor correction which under normal circumstances would not call for a separate disclosure, DNO finds it appropriate to report it to avoid further incorrect media speculation.
DNO International ASA
21 September, 2009