Published: 07:00 CEST 05-09-2011 /Thomson Reuters /Source: DNO International ASA /XOSL: DNO /ISIN: NO0003921009
Boards of Directors Approve Merger of RAK Petroleum MENA Operating Subsidiaries into DNO International
Following completion of due diligence and agreement on relative valuations, the Boards of Directors of DNO International ASA ("DNO International") and RAK Petroleum PCL ("RAK Petroleum") signed definitive documents on 3 September 2011 to merge RAK Petroleum's oil and gas operating companies into DNO International in exchange for DNO International shares (the "Transaction"). The Transaction values DNO International at USD 1.64 billion corresponding to NOK 9.50 per share and RAK Petroleum's operating subsidiaries at USD 250 million (before working capital adjustments).
"By combining our two companies' assets and people, the enlarged DNO International will be positioned not only to extract greater Value from the existing exploration and production properties but to play an even more active role in the Middle East and North Africa or MENA region," said Helge Eide, DNO International's Managing Director. He added that while the new and enlarged entity will be present in five MENA countries, the company is committed to further expanding its operations in the Kurdistan Region of Iraq.
Gunnar Hirsti, DNO International's Deputy Chairman, who led the Merger negotiations for the Company, stated that given the related party nature of the transaction special care was taken to conduct thorough due diligence using both internal and external resources and to secure the best possible terms and conditions, including relative valuations. "The current Merger discussions were initiated by DNO International's management in July 2011 with full support of the independent directors and we are very pleased with the outcome and believe it ultimately serves all our shareholders and stakeholders," according to Hirsti.
The Merger is part of DNO International's strategy to expand its operations in the MENA region while securing a more diversified asset base through acquisition of existing reserves and production as well as additional exploration acreage, both onshore and offshore.
The Company's current working interest production averages 45,000 barrels per day of oil equivalent. Following the Merger, the immediate production contribution from RAK Petroleum's MENA operating subsidiaries to the Company will be around 7,500 barrels per day of oil equivalent, climbing to around 15,000 barrels per day of oil equivalent within a year with the successful implementation of the Saleh field re-development program offshore Ras Al Khaimah.
Presentation/webcast and conference call
A presentation and webcast will be held today, 5 September 2011 at the Continental Hotel in Oslo at 10:00 CET. A live webcast of the presentation will be available on the DNO International website www.dno.no or by following this link:
http://presenter.qbrick.com/?pguid=d2a1a56b-06fb-49a9-8b6f-e7f60ee99671
An analyst conference call will be held today, 5 September 2011 at 15:00 CET. The conference call will mainly be conducted as a Q&A session. Participant telephone numbers are +47 23 50 04 86 (Norway Toll) or +44 (0) 20 3106 4822 (International Toll). Conference ID is 5976184.
A presentation for the webcast and conference call will be published prior to the events.
For more information, see attached press release.
Oslo, 5 September 2011
DNO International ASA
Corporate Communicartions
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
BoD Approve DNO-RAK Merger - Press Release and SE Notice
http://hugin.info/36/R/1543898/473027.pdf
DNO website
http://dno.no/
DNO vil børsnoteres i London i 2012. Det er jo også europas olie og gas børs no. 1.
http://www.hegnar.no/bors/article649946.ece
http://www.hegnar.no/bors/article649946.ece
5/9 2011 10:09 fcras 0
46053 DNO - Webcast presentation pack
Published: 09:34 CEST 05-09-2011 /Thomson Reuters /Source: DNO International ASA /XOSL: DNO /ISIN: NO0003921009
Webcast presentation pack: Boards of Directors Approve Merger of RAK Petroleums MENA Operating Subsidiaries into DNO International
Please find attached the material for the presentation and webcast today at 10:00 CET.
Oslo, 5 September 2011
DNO International ASA
Corporate Communications
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
DNO-RAK MENA Merger - Presentation
http://hugin.info/36/R/1543937/473046.pdf
Published: 09:34 CEST 05-09-2011 /Thomson Reuters /Source: DNO International ASA /XOSL: DNO /ISIN: NO0003921009
Webcast presentation pack: Boards of Directors Approve Merger of RAK Petroleums MENA Operating Subsidiaries into DNO International
Please find attached the material for the presentation and webcast today at 10:00 CET.
Oslo, 5 September 2011
DNO International ASA
Corporate Communications
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
DNO-RAK MENA Merger - Presentation
http://hugin.info/36/R/1543937/473046.pdf
Prisen for DNO aktierne er 9,5 Kr. og værdierne i RAK sat til den nederste ende af intervallet 250-300 musd, nemlig 250. Så det er DNO der har overhånden i selve Merger delen om de så har fået det billigt eller ej er jo et godt spørgsmål. Hvis jeg var dem lagde jeg et bud på hele DNO, afnoterede det. Og gennoterede det så på London Stock Exchange med en præmie på 100%.
Det er en god ledelse: Der kan regne en Merger hjem på analytikernes kursmål!
Evaluation of the reserves and resources of both parties and technical
valuation of the assets by DeGolyer & MacNaughton (D&M)
• The technical net asset values for DNO and RAK presented in the CPR
have been the main basis for estimating the exchange ratio
• The valuations are based on a common set of assumptions to ensure that
the comparison of one valuation to the other is consistent
• In addition to the technical net asset Value presented in the CPR, a
thorough analysis of several other factors has been performed
- Additional risking related to maturity of projects
- Political and commercial risk factors on both companies´ assets
- Comparison with other relevant transactions
- Various financial analysts' valuation and target share price for DNO
- DNO share price
- Other relevant input
Evaluation of the reserves and resources of both parties and technical
valuation of the assets by DeGolyer & MacNaughton (D&M)
• The technical net asset values for DNO and RAK presented in the CPR
have been the main basis for estimating the exchange ratio
• The valuations are based on a common set of assumptions to ensure that
the comparison of one valuation to the other is consistent
• In addition to the technical net asset Value presented in the CPR, a
thorough analysis of several other factors has been performed
- Additional risking related to maturity of projects
- Political and commercial risk factors on both companies´ assets
- Comparison with other relevant transactions
- Various financial analysts' valuation and target share price for DNO
- DNO share price
- Other relevant input
