DNO International reported signing a definitive agreement to acquire RAK Petroleum's oil and gas operating companies.
Under the proposed transaction, RAK’s Middle East and North African operations will be merged into a subsidiary of DNO in exchange for DNO shares to be issued to RAK Petroleum.
The merger is part of DNO International’s strategy to expand its operations in the MENA region through acquisition of existing reserves and production as well as additional onshore and offshore exploration acreage.
DNO’s current working interest production averages 45,000 boe/d. Following the merger, the production contribution from RAK Petroleum’s MENA operating subsidiaries will be 7,500 boe/d.
That figure is expected to rise to 15,000 boe/d within a year with the successful implementation of the Saleh field redevelopment program offshore Ras Al Khaimah.
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