In a board meeting on 13 February 2003 the Board of Directors of DNO ASA reviewed certain balance sheet items in the consolidated financial statements for the fourth quarter of 2002.
The consolidated financial statements for the fourth quarter of 2002 and the preliminary financial statements for the accounting year 2002 will be determined in the board meeting on 18 February. As previously announced, the preliminary financial statements will be presented on 19 February.
In accordance with the prudence concept, and in view of the planned international stock exchange listing (AIM) and the current financial situation of PDR ASA, the Board of Directors will implement the following actions for the fourth quarter of 2002:
1) The Timan Pechora project
Full write-down of the company's Russian project (Timan Pechora) (By an amount of NOK 42 million), in addition to the ordinary amortisation for the quarter of NOK 5 million (in all NOK 47 million for the quarter).
DNO will continue its work of realising the values in the project. At the end of 2002, however, it is difficult to quantify/estimate future cash flows with a sufficient degree of certainty.
2) Issues relating to the financial investment in
PDR ASA
The company will fully write-down the book value of its share investment in PDR ASA, after part of the company's balances with PDR ASA was converted to shares in the fourth quarter (In the financial statements for the fourth quarter of 2002, the NOK 46 million write-down is classified as share of loss in associated companies pursuant to the equity method).
The company will also write down previously recorded interest and rental income by NOK 30 million in the fourth quarter of 2002.
The above issues will not have any effect on the EBITDA for the fourth quarter of 2002.