UPDATE: Oslo Bors,Kurdish Region Government Meet On DNO International Dispute

Oslo's stock exchange Monday said it has held a meeting with a representative of the Kurdish Regional Government to discuss an ongoing dispute centered on Norwegian oil company DNO International ASA (DNO.OS).

The exchange said its Chief Executive Bente Landsnes and Senior Vice President of legal affairs Atle Degre met with the KRG's Khaled Salih, advisor to the region's prime minister and minister of natural resources.

"Salih explained the unfortunate consequences that what has become known as the 'DNO case' has caused for KRG," the exchange said.

"Oslo Bors stressed during the meeting that the exchange does not have any issues with KRG, and that KRG has not at any time been the subject of investigations by the exchange," it added.

The bors last week released documents from its investigation into DNO's October 2008 sale of 4.8% of its shares which showed Hawrami was involved in the transaction.

Ensuing events, including speculation about Hawrami's role in the sale - an official move designed to ensure funding for DNO and Turkey's Genel Enerji which have assets in Kurdistan - resulted in KRG suspending DNO's oil operations and exports and a 50% plunge in the value of DNO's stock.

Both KRG and DNO have since criticized the bors' decision to reveal Hawrami's involvement, saying it caused damage to the government's reputation.

The exchange has however stuck by its decision to publish the documents in response to a freedom of information request from a newspaper.

It said its investigations into the transaction related to "DNO and the company's duties towards the exchange and the market. For Oslo Bors the case was completed by the decision announced by the stock exchange appeals committed on Sept. 17," it said. That decision overruled an earlier decision by the bors to fine DNO in respect of insider trading, although a second fine was upheld relating to the withholding of information.

Web site: www.oslobors.no

-By Elizabeth Adams, Dow Jones Newswires; [phone]; [e-mail]