Denmark: DONG Energy Selling Interests in North Sea Licences

DONG Energy has sold 15% of the Svane and Solsort licences (4/98 and 3/09) in the Danish sector of the North Sea to VNG Danmark ApS.

DONG Energy is reducing its licence interests as part of its portfolio optimisation.

An appraisal drilling of the Svane field carried out in 2001 by the then operator ConocoPhillips indicated the possible presence of a large gas reservoir. However, technical problems in connection with the drilling raised

uncertainty about the findings. For this reason, a new appraisal drilling is required to determine the volumes and the possibilities of extracting the gas.

As announced earlier this year, the detailed planning of the appraisal drilling will take place in 2010, and the licence group will then determine the final time schedule for the appraisal drilling.

An exploration drilling of the Solsort field is yet to be initiated, but is  expected to take place this year.

Thus, DONG Energy has a 35% ownership interest and remains the operator of the Svane and Solsort licences, respectively. The other owners are Bayerngas (30%), the Danish North Sea Fund (20%) and VNG Danmark ApS (15%).

VNG Danmark ApS is a subsidiary of VNG Norge AS, which is, in turn, a subsidiary of VNG – Verbundnetz Gas AG, headquartered in Leipzig. The content of this announcement does not alter the previously announced

expectations for DONG Energy’s financial result for 2010 or the announced expected level of investments.

[mappress]

Source: Dongenergy, August 25, 2010: