Somaliland president Ahmed M. Mohamoud Silanyo and DNO executive chairman, Bijan Mossavar-Rahmani attended the signing ceremony in Washington, DC.
Mossavar-Rahmani said: "This 12,000 square kilometre block adds substantial exploration acreage to DNO International's portfolio and in an area that is both prospective and undrilled."
He said Somaliland fell within the company's geographic and geological comfort zones adding: "We have been active across the Gulf of Aden in Yemen since the late 1990s."
The company has initiated studies on Block SL18 ahead of an extensive seismic program planned for 2014.
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