DNO ASA: DNO Reports Third Quarter 2014 Results
(Thomson Reuters ONE) -
Oslo, 13 November 2014 - DNO ASA, the Norwegian oil and gas operator, today
reported third quarter 2014 gross production of 124,396 barrels of oil
equivalent per day (boepd) on the strength of uninterrupted operations at its
flagship Tawke field in the Kurdistan region of Iraq.
Increasing volumes of Tawke oil were directed from local sales to exports
through Ceyhan, Turkey during the quarter by the Kurdistan Regional Government
which announced last Friday that a payment of USD 75 million would be made to
the producing companies towards their share of exports.
The statement also indicated that other payments would follow the November
payment on a regular basis, and that with further production increases,
producers would receive their full contractual entitlements.
"We are of course very pleased that increasing exports, importantly from Tawke,
are enabling Kurdistan to meet its financial needs at a very difficult time and
to begin to allocate to DNO and other producers our contractual share of export
revenues," said Bijan Mossavar-Rahmani, DNO's Executive Chairman. "DNO is fully
committed to Kurdistan and will continue to reinvest revenues from exports to
develop our extensive asset base in the country."
The reduction in local Kurdistan sales contributed to a drop in third quarter
operating cash flow to USD 25 million. The company recorded an operating loss of
USD 41.6 million on third quarter operating revenue of USD 115.7 million
following a one-off charge for impairments as it continues to cut costs and high
grade its portfolio. Absent this charge, operating profit would have totaled USD
3.8 million during the quarter. Year-to-date operating profit is USD 43.6
million. DNO ended the quarter with cash balances of USD 165.7 million,
excluding USD 97.0 million held in treasury shares and shares of RAK Petroleum
plc.
Drilling of additional wells continued without interruption during the quarter
at Tawke and a stabilizing security environment allowed resumption of field
expansion program, though with some delay. Costs related to Tawke development
totaled USD 41.7 million in the third quarter.
Elsewhere, in Oman, the acquisition of a 1,000-kilometer 2D seismic program on
Block 36 was completed on schedule with the first exploration well planned in
2015.
In Tunisia, the Jawhara-3 exploration spudded in mid-October and has drilled to
an intermediate casing depth of 2,340 meters, encountering a secondary Eocene
target with indications of hydrocarbons. This intermediate section has been
logged and cased and drilling operations will resume to test three deeper
secondary and primary targets in the Cretaceous and Turonian. The well is the
first of several exploration and appraisal wells planned in the offshore Sfax
permit.
DNO will present its financial and operating results today in Oslo at 10:00 CET
(09:00 GMT). A live webcast of the presentation as well as the full third
quarter 2014 interim report will be available on the company website
(www.dno.no).
--- DNO ASA is an Oslo-listed, Middle East and North Africa focused oil and gas
company holding stakes in 20 blocks in various stages of exploration,
development and production both onshore and offshore in the Kurdistan Region of
Iraq, the Republic of Yemen, the Sultanate of Oman, the United Arab Emirates,
the Tunisian Republic and Somaliland ---
Oslo, 13 November 2014
DNO ASA
Corporate Communications
Queries: Bjorn Dale (e-mail: bjorn.dale(at)dno.no or phone: +47 911 57 197)
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q3 2014 Interim Report:
http://hugin.info/36/R/1870984/658131.pdf
Q3 2014 Interim Presentation:
http://hugin.info/36/R/1870984/658132.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: DNO ASA via GlobeNewswire
[HUG#1870984]
Unternehmensinformation / Kurzprofil:
Datum: 13.11.2014 - 08:01 Uhr
Sprache: Deutsch
News-ID 352211
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contact information:
Town:
Oslo
Kategorie:
Business News
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