DNO ASA ("DNO") has entered into a set of Agreements with Bitech Petroleum Corporation ("Bitech"), subsidiaries of Bitech and with DNO Explorations Scandinavia AS (“DNOS”), with respect to the DNO interests in the potential development of three oil fields in Timan Pechora, NW Russia ("MMT Fields").
DNO has transferred its interests in the MMT Fields to its subsidiary DNOS in consideration for the agreement by DNOS to repay past costs out of future revenues of MMT oil production, if the MMT Fields are developed with DNOS participation.
Furthermore, Bitech has agreed to become the majority shareholder in DNOS whilst DNO will retain a minority investment interest.
The management of DNOS, with support from Bitech and DNO shall work within a certain period to achieve acceptable legal and commercial arrangements with local authorities to allow a profitable development of the MMT Fields together with the Russian party, JSC Arkhangelgeolodobycha (“AGD”).
Bitech is a Canadian company quoted on the Toronto Stock Exchange. Bitech has ongoing production of approx 10,000 barrels of oil per day from the Komi Republic, NW Russia. Its publicly disclosed shareholders include a major oil company and several financial institutions including the International Finance Corporation ("IFC").
Oslo, 29 March 2001
DNO ASA