DNO Norge AS entered into an agreement to acquire unknown minority stake in five oil and gas fields in the Norne area in the Norwegian Sea of Vår Energi ASA on May 8, 2024. The cash consideration is $51 million. In addition, the Company will transfer its stake in Ringhorne East (22.6%) located in a non-core area for DNO to Vår Energi. The transaction includes an interest in four producing fields, Norne (6.9 percent), Skuld (11.5%), Urd (11.5%) and Marulk (20%), plus the ongoing Verdande development (10.5%). Prior to the transaction, DNO held interests in Marulk (17%), Alve (32%) and the ongoing Andvare development (32%). The transaction creates a new core area for DNO in the North Sea as DNO will hold interests in all producing and under development fields in the greater Norne area, including the Norne hub. The transaction adds more than eight million barrels of oil equivalent (MMboe) in reserves and resources net to DNO. In terms of production, the transaction (net to DNO, including divestment of Ringhorne East) is estimated to add 3,000 barrels of oil equivalent per day (boepd) to DNO?s output at closing, rising to above 5,000 boepd in 2026 as the Verdande contribution kicks in.

The effective date of the transaction is January 1, 2024 and the transaction is subject to customary regulatory approvals and is expected to close in the third quarter 2024. The transaction does not impact Vår Energi?s previously announced production guidance for 2024, year-end 2025 and beyond. Houlihan Lokey acted as exclusive financial advisor and Advokatfirmaet Schjødt as legal advisor to Vår Energi on the transaction.