DNO Steps up Kurdistan Activity, Reports First Quarter Results
(Thomson Reuters ONE) -
Oslo, 4 May 2016 - DNO ASA, the Norwegian oil and gas operator, announced the
startup of an active drilling program at its flagship Tawke field in the
Kurdistan region of Iraq as the company boosts investments on the back of seven
consecutive monthly oil payments, the last three of which were in line with its
contractual entitlements.
The company also reported the first quarterly profit from operating activities
since mid-2014 of USD 8 million and indicated it is on track towards increased
profitability in 2016.
At Tawke, workover operations at three existing wells reversed production
declines and added 10,000 barrels of oil per day (bopd) of incremental output in
the first quarter. Another seven workovers are planned this year. In addition,
the company will drill five new Tawke production wells, three targeting the
field's main Cretaceous reservoir and two targeting the shallower Jeribe
reservoir.
Tawke production during the first quarter averaged 91,700 bopd, of which 87,200
bopd was delivered for pipeline export through Turkey. Output was down as a
result of the extended closure of the Turkish portion of the export pipeline in
the second half of February and first half of March. Once pipeline operations
were restored, Tawke production averaged 118,900 bopd in April, of which
117,800 bopd was delivered for export.
Later this year, the company plans a well to appraise the Peshkabir discovery,
which if successful, can be quickly tied into existing facilities. Excluding
Peshkabir, DNO has set a Tawke production target of 135,000 bopd following its
2016 investments.
"We jump started investments at Tawke once Kurdistan provided regularity and
predictability of payments," said DNO's Executive Chairman Bijan Mossavar-
Rahmani, "and the results speak for themselves." He noted that the first three
workovers were completed in about 30 days and at a combined cost of USD 1.5
million but generate USD 10 million a month in additional field export revenues.
DNO was the first Western oil company to enter Kurdistan following the U.S. led
invasion of Iraq and the discovery of the Tawke field in 2006 set off the
region's oil bonanza. A decade later, the Tawke field accounts for 50 percent of
the production, 60 percent of the exports and 50 percent of the proven reserves
of the three largest foreign operators in Kurdistan.
Since September 2015, the company has received USD 175 million from the
Kurdistan Regional Government for Tawke deliveries (of which USD 128 million net
to DNO). Included in these figures are three payments totaling USD 65 million
(USD 48 million net to DNO) received in the first quarter of 2016.
DNO's cash balance increased from USD 238 million at the end of last year to USD
262 million at the end of March 2016.
--
For further information, please contact:
Media: media(at)dno.no
Investors: investor.relations(at)dno.no
Tel: +47 911 57 197
--
DNO ASA is a Norwegian oil and gas operator focused on the Middle East and North
Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the company holds
stakes in onshore and offshore licenses at various stages of exploration,
development and production in the Kurdistan region of Iraq, Yemen, Oman, the
United Arab Emirates, Tunisia and Somaliland.
--
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q1 2016 Interim Presentation:
http://hugin.info/36/R/2009685/743750.pdf
Q1 2016 Interim Report:
http://hugin.info/36/R/2009685/743751.pdf
This announcement is distributed by GlobeNewswire on behalf of
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(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#2009685]
Unternehmensinformation / Kurzprofil:
Datum: 04.05.2016 - 08:00 Uhr
Sprache: Deutsch
News-ID 468538
Anzahl Zeichen: 4514
contact information:
Town:
Oslo
Kategorie:
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