“Det norske oljeselskap ASA” NOIL + Pertra

Presentation Oslo 9 October 2007

Haakon Sandborg, DNO ASA

Ivar Brandvold, DNO ASA

Kaare M. Gisvold, Pertra ASA

Erik Haugane, Pertra ASA

Rationale behind the Merger• Create the no 2 Norwegian exploration and production

company focused on NCS

• Build on existing portfolio by utilizing present expertise established in the two companies

• The combined company will be a more forceful player on NCS than either NOIL or Pertra on a stand-alone basis

• The combined company will enhance capabilities to

– Accelerate growth– Accelerate growth

– Respond to commercial and technical challenges

– Deliver long term value to shareholders and society

• Structural change creates new opportunities

– Leader in sector consolidation

– Competitive advantage in acreage awards

– Utilize size to enhance organic growth, farm-ins and M&A activity

• More attractive to investors and employees

– Larger company

– Increased news flow and liquidity

• Merger structure:

– Pertra will issue new shares as consideration for outstanding shares in NOIL

including DNO ASA’s 83.67% shareholding in NOIL as step one in the

transaction

– Predefined exchange ratio based on a share price of 3 NOIL shares per Pertra

share

– The offer will be extended to all NOIL shareholders

Transaction background

– The offer will be extended to all NOIL shareholders

– NOIL shareholders will hold 60% of the combined company

• DNO has pre-committed to the exchange offer

– DNO has reduced their shareholding to 39.97% by selling 27,7 mill NOIL shares

• The name of Pertra will change to “Det norske oljeselskap ASA” and will continue to trade on OSE

The Name of the Combined Company

• DET NORSKE OLJESELSKAP AS was founded 6 August 1971

• “Det norske oljeselskap” is the oldest private Norwegian oil company still in

operation

• The name reflects the new company's pan-Norwegian presence offshore and

onshore

– Licenses in the North Sea, Norwegian Sea and the Barents Sea

– Offices in Mid Norway, North Norway, Southeast and Southwest Norway

• DNO ASA will change name to DNO International ASA

– NOIL will also change name

• A new logo and graphic identity will be designed for Det norske oljeselskap ASA

The Management

• Det norske oljeselskap and NOIL will continue as individual companies until

merged during 2008

– Roar Tessem heads NOIL ASA, and will continue to operate NOIL licenses and expand the

Oslo office

– Erik Haugane heads Det norske oljeselskap ASA, Trondheim– Erik Haugane heads Det norske oljeselskap ASA, Trondheim

• After the Merger:

– CEO Erik Haugane, office both in Trondheim and Oslo

– CFO a new employee, located in Oslo

– Organisation and management will be discussed further by the board

The new Board of Directors

• DNO will nominate 3 persons

• Pertra will nominate 3 persons

• One independent person will be jointly nominated

• Kaare M. Gisvold will be chairperson (2 year term)

• Employees in Oslo (NOIL) elect one person

• Employees in Trondheim/Harstad/Stavanger (Pertra) elect one person

• All together 9 persons

No 2 position on NCS established

80

100

120

140

No of Operatorships on NCS

0

20

40

60

Det norske oljeselskap

Source: NPD 2007

Accelerated growth

• NOIL and Pertra have both achieved successful growth on the NCS

• Pertra and NOIL have cooperated extensively in the last three APA rounds

• NOIL and Pertra have outstanding staffs, totalling more than 80 people

• The combined company will have the 2nd largest exploration Norwegian

capacity in terms of employees, database and rig assignments in Norway

A Merger for Growth

• The company will participate in E&P activities over the entire Norwegian Shelf

• The merger of NOIL and Pertra is a sound platform for aggressive growth and

enthusiasm in both competence centres

• The company’s key value creation strategy is to discover and put into • The company’s key value creation strategy is to discover and put into

production undiscovered petroleum resources on the NCS

• The company will acquire licenses primarily by license applications but also by

farm-in agreements, trades and M&A activity

• In house capacity is expected to increase from approx. 80 today to 150

employees by 2009

DetDetDetDet norskenorskenorskenorske oljeselskapoljeselskapoljeselskapoljeselskap ASA,ASA,ASA,ASA,

---- an All Norwegian Companyan All Norwegian Companyan All Norwegian Companyan All Norwegian Company

Det norske oljeselskap ASA

registered office in Trondheim

10

registered office in Trondheim

E&P

Oslo

License trade

Stavanger

E&P

Trondheim

E&P Barents Sea

Harstad

Head offices in

Trondheim & Oslo

Operatorships in the combined company

• 12 operatorships in the North Sea

• 3 operated wells in 2007

• 3 operated wells planned in 2008

• 5 operatorships in the Norwegian Sea

• 2 operated wells planned in 2008

37 Licences in the combined company

The Norwegian Sea

• A good foothold for growth

The North Sea

• Includes 50% in the Frøy field

• Production from Glitne, Enoch and Varg

• 45% in the Storskrymten discovery

• 30% in the Ragnarrock discovery

• Partner in several exploration wells in 2007/08

• A good foothold for growth

• 5 operatorships

• 3 licenses 100% owned

The Barents Sea

• 15% in the Goliat field

Producing assetsPL043 – Varg

Operator: Talisman (65%)

Det norske oljeselskap interest: 5%

Net production at present: 525 bopd

Small oil field located south of Sleipner. Developed with a monotower wellhead platform in conjunction with the Petrojarl Varg (FPSO). Varg started production in 1998

PL048B – Glitne

Operator: StatoilHydro (58.9%)

Det norske oljeselskap interest: 10%

Net production at present: 800 bopd1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

Net boe/day

Net production at present: 800 bopd

Located north of Sleipner. Developed via a subsea solution tied back to the leased FPSO “Petrojarl 1”, Glitne started production in 2001

PL048D – Enoch

Operator: StatoilHydro (58.9% / 11.78%)

Det norske oljeselskap interest: 10% / 2%

Net production at present: 250 bopd

Small oil and gas field located on the UK/Norway median line. Developed utilizing a single subsea well tied back to the Brae ‘A’ platform Enoch commenced production 1 June 2007

0

500

1998 2000 2002 2004 2006 2008 2010 2012 2014

Varg Glitne Enoch

Fields under development

PL 316 Yme (re-development)

Operator: Talisman (70%)

Det norske oljeselskap interest: 10%

Expected gross reserves: 60 mmboe

Yme is a small oil field located in the south eastern part of the Norwegian North Sea shelf within the Egersund Basin. The field ceased production in 2001 after producing 50 mmbbl of oil

The PDO for the re-development of the field was approved in May 2007. Yme will be developed with a jack-up production unit with storage tank on seabed of the Yme Gamma. Subsea installation on

5 000

10 000

15 000

20 000

25 000

Net boe/day

storage tank on seabed of the Yme Gamma. Subsea installation on the Yme Beta. First production is expected late 2009

PL 364 Frøy (re-development)

Operator: Pertra

Det norske oljeselskap interest: 50%

Expected gross reserves: 50-70 mmboe

Frøy is a small oil and gas field, located to the south east of the Frigg gas field. Originally the Frøy field was developed as a satellite to the Frigg field, using a remotely controlled unmanned wellhead platform. The field ceased production in early 2001, after six years in operation

The field will be developed with a Mobile Production, Drilling and Storage unit. First production is expected 2010

Yme field development Frøy potential field development

solution

0

2007 2009 2011 2013 2015 2017 2019

Yme Frøy

PL 229/229B – Goliat

Operator: Eni (65%)

Det norske oljeselskap interest: 15%

Expected gross reserves: 250-400 mmboe

• Strategic asset– Discovered in 2000 and first commercial oil discovery in

the Barents Sea

– The largest oil discovery made on the NCS for more than 10 years 4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

Net boe/day

10 years

– The development is likely to act as a catalyst for further activities in the area

– Goliat will become a potential area hub

– The ownership in PL 229 might provide leverage for various attractive business development opportunities for Det norske oljeselskap

• Goliat development– PDO expected in 2008 with production start-up late 2011

– Several development alternatives considered

– Gas volumes will be connected to Snøhvit pipeline and transported to the Melkøya processing plant

0

2 000

4 000

2011 2013 2015 2017 2019 2021 2023

Goliat 250 Goliat 400

Significant production growth ahead

20 000

25 000

30 000

35 000

Net boe/day • Production growth is based on development

of proven commercial discoveries only

– Yme, PDO approved 2007

– Frøy, PDO expected delivered 1H 2008

– Goliat, PDO expected delivered 1H 2008

• 30,000 boe/day in 2012 from commercial

discoveries only

0

5 000

10 000

15 000

2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

Varg Glitne Enoch Yme

Frøy Goliat 250 Goliat 400

• Further upside through other discoveries

including the recent Ragnarrock and

Storskrymten discoveries

• Extensive appraisal and exploration program

will generate further discoveries for

substantial growth beyond 2012

Pursue aggressive growth in operatorships

New Co

Future expectations

in the combined

As is

Historic

performance by

NOIL and Pertra

in the combined

company

Operated exploration wells

Operated drilling capacity exceeds Hydro

Prognosed need

Actual

Det norske oljeselskap

Norsk Hydro

The performance in the

90ies by Saga and Hydro

compared to Det norske

oljeselskap’s contracted

capacity

Ex

pl

or

at

io

n

we

ll

s

pr

y

ea

r

Norsk Hydro

Saga Petroleum

The 2008 programme is

confirmed. The 2009

programme will be

influenced by coming awards

Additional rig capacity is

required from 2011

Ex

pl

or

at

io

n

we

ll

s

pr

y

ea

r

Conclusions

• The combined company will be the 2nd largest Norwegian operating company and

constitute an important player for value creation on NCS

• The combined company will have a continuous activity and growth, making it

more attractive to the employees and the financial market

• The combined company will be the most aggressive exploration player in the • The combined company will be the most aggressive exploration player in the

medium/small field segment on the NCS

• The combined company will be an attractive partner to the Norwegian

authorities as well as to the oil service industry

All of this is contingent upon: Approval from EGM in Pertra/DNO/NOIL, approval

from the authorities, other relevant parties as well as satisfactory Due Diligence