SANDNES, NORWAY: Vår Energi ASA (OSE: VAR) agrees the sale of its Norne area assets to DNO Norge AS for a fixed after-tax consideration of USD 51 million, and DNO Norge AS will transfer to Vår Energi their stake in the Ringhorne East unit.

The transaction with DNO is in line with Vår Energi’s stated strategy to dispose of non-core assets to high grade the portfolio, supporting further growth and long-term value creation in our core hub areas. The assets being sold are late life, and the transaction will improve Vår Energi’s unit operating costs and emissions intensity outlook.

Vår Energi CEO Nick Walker says: “Vår Energi is one of the fastest growing E&P companies in the world and is firmly on track to reach production of around 400 thousand barrels of oil equivalent per day by the end of 2025. Following the Neptune transaction our stated plan was to dispose of non-core assets to high grade the portfolio, and we are pleased to have reached an agreement with DNO for the sale of producing field interests in the Norne area and to receive an increased stake in the Ringhorne East unit. This transaction reduces our operating cost and emissions outlook and enhances future value creation.”

The Norne area is located in the Norwegian Sea and include the Norne (6.9%), Urd (11.5%), Skuld (11.5%) and Marulk (20%) fields and the Verdande (10.49%) development project.

Vår Energi’s net production from the Norne area fields was approximately three thousand barrels of oil equivalent per day in 2023 and first quarter 2024. Net remaining proved plus probable (2P) reserves for the fields is 7 million barrels of oil equivalent at year end 2023.

The agreement will be effective from 1 January 2024. DNO Norge AS will assume ecommissioning liabilities for the acquired fields. As part of the transaction Vår Energi will receive DNO Norge AS’s 22.62% stake in the Ringhorne East unit.

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 to Vår Energi on the transaction and Advokatfirmaet Schjødt as legal advisor.

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