DNO ASA, the Norwegian oil and gas operator, announced it has reached agreement to acquire 100% of the shares of Sval Energi Group AS from HitecVision for a cash consideration of $450 million based on an enterprise value of $1.6 billion.

The Sval Energi assets are complementary to DNO’s North Sea portfolio and will add scale and diversification to solidify the Company’s position as a leading listed European independent oil and gas company.

The acquisition will be financed from existing liquidity including available credit facilities. The Company will set in place the optimal capital structure prior to completion.

“This is a rare opportunity to acquire a portfolio of high-quality oil and gas assets on the Norwegian Continental Shelf,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani, “and we have moved fast to capture it.” He continued that “given low unit production costs and limited near-term investment requirements, the Sval Energi portfolio is highly cash generative and will help underpin development of the numerous discoveries we have made in Norway recently,” he added.