By OGJ editors
HOUSTON, Oct. 10 -- Norway's Pertra ASA announced plans to merge with DNO ASA's Det Norske Oljeselskap ASA (NOIL) in a move that will create the second-largest operator in Norway after the newly formed StatoilHydro ASA.
The transaction is expected to close in November pending approval by the companies' shareholders and Norwegian authorities.
The new company will be called Det Norske Oljeselskap ASA. It will operate 17 licenses off Norway and expects as operator to drill 20 exploration wells over the next 3 years.
Pertra Chief Executive Erik Haugane and Chairman Kaare M. Gisvold will both continue in their respective roles with the new company.
The deal, structured as an exchange offer, requires Pertra to swap each one of its shares for three shares in NOIL. DNO will be the largest shareholder of the new company with a stake of 39.97%. Terms of the agreement requires DNO to reduce its stake to no more than 25% by yearend 2008.