DNO International, RAK Petroleum merge

Offshore staff

OSLO, Norway – The board of directors of DNO International and RAK Petroleum have signed definitive documents to merge RAK Petroleum's oil and gas operating companies into DNO International in exchange for DNO International shares.

The transaction values DNO International at $1.64 billion corresponding to NOK 9.50 ($1.67) per share and RAK Petroleum's operating subsidiaries at $250 million (before working capital adjustments).

Helge Eide, DNO International's managing director, said: "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."

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.

09/13/2011