DNO Bulks Up in Norway with acquisitions, exploration success

Following closing, DNO’s wholly-owned subsidiary DNO Norge AS holds interests in all producing and under development fields in the greater Norne area, making it a core area for the Company on the Norwegian Continental Shelf.

The transaction includes interests in four producing fields, Norne (6.9 %), Skuld (11.5 %), Urd (11.5 %) and Marulk (20 %) plus the ongoing Verdande development (10 %). Prior to the transaction, DNO held interests in Alve (32%), Marulk (17%), and Andvare development (32 %) in the Norne area.

Adjusting for cash flow between effective transaction on 1 January 2024 and completion on 30 August 2024, the net cash consideration paid by DNO was approximately US$24 million. The transfer of DNO’s 22.6 % interest in Ringhorne East to Vår Energi, the other element of the swap, was completed on the same date.

The transaction adds more than eight million barrels of oil equivalent (MMboe) in reserves and resources net to DNO. In terms of production, the acquired assets delivered approximately 3000 boe/d in the first half of 2024, expected to rise to above 5000 boe/d in 2026 as the Verdande contribution kicks in.

All fields in the Norne area are tied back to the Equinor-operated Norne FPSO that came onstream in 1997. Oil produced in the area is loaded from the FPSO to tankers for export, while gas is exported by pipeline through the Åsgard Transport System. Planned hub lifetime extends to 2036. With its expanded area position, DNO has stepped up studies of near-field exploration targets and infill well opportunities.

Coming on the heels of DNO’s acquisition of a 25 % stake in UK’s Arran field completed in May, the new Norne assets will support a ramp-up in DNO North Sea’s production next year, together with the restart of Trym (DNO 50 % and operator) in the fourth quarter of 2024 and start-up of Andvare (DNO 32 percent) in 2025.

Meanwhile, DNO continues its active exploration in the North Sea with the ongoing drilling of the combined Heisenberg appraisal and Angel exploration well (DNO 49 percent). Followed by Ringand (DNO 20 %) and Falstaff (DNO 50 % and operator) which are expected to spud in September. DNO will today submit one of the largest applications in the Company’s history for the upcoming APA 2024 licensing round, with awards expected during the 1Q25.

Last year, the Company was the third most active exploration driller on the Norwegian Continental Shelf in number of wells drilled and ranked second in discovered volumes with an estimated 100 MMboe net to DNO. Having prioritized near-infrastructure exploration, DNO has been an early mover in acquiring substantial acreage positions in selected areas which have since become hotspots.

Read the article online at: https://www.oilfieldtechnology.com/exploration/02092024/dno-bulks-up-in-norway-with-acquisitions-exploration-success/