DNO to consider Operatorship of Thistle

DNO has entered into a non-binding Heads of Terms for the proposed temporary transfer of Operatorship and Interest in the Thistle Field Area (Thistle Field, Area 6 and Deveron) from Britoil (BP) and Conoco.

The Thistle Area lies in Block 211/18 in the Northern North Sea some 70 km north east of the Heather platform which DNO has operated since 1997.

The Thistle field was brought into production in 1978 and achieved peak production of 125,000 bopd in 1982. It is currently producing at around 6,500 bopd from 21 production wells.

During the coming months DNO will perform an in-depth review of the resource potential of the Thistle Area with a view to evaluating the opportunity for extending the field life through increased recovery measures together with cost reduction initiatives.

In the event that final agreement is reached with Britoil (BP) and Conoco and regulatory approval is given, it is expected that transfer of Operatorship would take place towards the end of 2002. DNO will not have any responsibility for the cost of decommissioning the Thistle Area facilities.

3rd April 2002