Norway’s DNO buys RAK assets in $250m deal

Oil firm is on lookout for Middle East assets as it looks to invest $320m cash pile
Norway’s DNO buys RAK assets in $250m deal
DNOs main shareholder is RAK Petroleum of the UAE
By Reuters
Mon 05 Sep 2011 12:58 PM

Norwegian oil firm DNO International said Monday it would
buy oil and gas fields from UAE-based Rak Petroleum for $250m of DNO stock,
after pricing its shares in the upper range of the announced range.

"The transaction values DNO International at $1.64bn corresponding
to NOK 9.50 per share and RAK Petroleum's operating subsidiaries at $250m (before
working capital adjustments)," the company said in a statement.

DNO, which agreed in July to buy the assets in return for
DNO shares, said then new shares would be issued in a price range of 8.25 to 10
crowns against RAK assets valued at $250m to $300m

DNO is valued at $1.64bn in an all-share acquisition of oil
and gas fields from its main shareholder under the agreement, some 75 percent
over its market value, the company said.

The oil company said in August it planned to buy new assets
in the Middle East and eventually boost output at its prize Iraqi Tawke field
as it looks to invest a NOK1.77bn ($320m) cash pile.

DNO last month posted a rise in second-quarter core earnings
to 565 million crowns ($102m) from 171 million a year ago.

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