DNO International ASA, the Norwegian oil and gas company, announced today that oil production from the Tawke field in the Kurdistan Region of Iraq has averaged over 100,000 barrels a day during the previous 72 hours as the Company conducts well and pipeline deliverability tests following its 2012 drilling program and facilities upgrades.

“We are very pleased with the performance of the field,” said Bijan Mossavar-Rahmani (pictured), DNO International’s Executive Chairman. “Having met this first deliverability milestone, we continue to reinvest to double Tawke production capacity.”

DNO International holds a 55 percent interest in and operates the Tawke license. Genel Energy plc holds 25 percent and the Kurdistan Regional Government the remaining 20 percent interest.

(Source: DNO)

DNO International has announced first quarter 2013 net profit of NOK 169 million on operating revenue of NOK 581 million, but the company’s shares fell by more than 1 percent.

During the quarter, operational cash flow of NOK 547 million exceeded capital spending of NOK 368 million and contributed to an increase in the Company’s free cash balance to NOK 1,750 million.

Production stood at 29,061 barrels of oil equivalent per day (boepd) on a company working interest basis compared to 42,116 boepd a year earlier.

The 2013 first quarter figure reflected lower deliveries at the Tawke field in the Kurdistan region of Iraq, partially offset by increased production at Block 8 offshore Oman. Oman contributed 46 percent of total group production during the quarter.

Bijan Mossavar-Rahmani (pictured), DNO International’s Executive Chairman, said:

“We continue to be self funding as we build up our oil and gas reserves with the drill-bit and increase production capacity in line with plans.“

He added that the Company has five drilling rigs actively engaged across its portfolio.

The Company’s proved and probable company working interest reserves continue to grow steadily, reaching 520 million barrels of oil equivalent (MMboe) at the end of 2012, up from 149 MMboe at the end of 2009, representing a compound annual growth rate of 52 percent.

(Sources: DNO, Yahoo!)

By John Lee.

Norway’s DNO International has published its 2012 Annual Report and Accounts detailing the Company’s operating performance and audited financial results.

DNO delivered revenues of NOK 2,842 million in 2012, up from NOK 2,070 million a year earlier, and net profit of NOK 1,040 million in 2012 versus NOK 653 million in 2011.

The results are unchanged from what was reported in preliminary form to the market on 12 February 2013.

The 2012 Annual Report can be downloaded here.

(Source: DNO)

DNO International has released its Annual Statement of Reserves setting total remaining proved and probable (2P/P50) reserves at 520.3 million barrels of oil equivalent (MMboe) on a company working interest (CWI) basis as at yearend 2012.

The comparable figures for yearend 2011, yearend 2010 and yearend 2009 were 371.9 MMboe, 194.2 MMboe and 149.4 MMboe, respectively.

Bijan Mossavar-Rahmani (pictured), Executive Chairman, said:

“I am hard pressed to name other international exploration and production companies of our size with such a record of year-on-year reserves growth over this period.“

The 40 percent increase in 2012 was driven principally by upward revisions at the Tawke field in the Kurdistan Region of Iraq and reserve additions from the merger of RAK Petroleum PCL’s operating subsidiaries into DNO International.

The 2012 reserves evaluation and report was prepared by independent petroleum consultants DeGolyer and MacNaughton. DNO International’s yearend 2012 proved and probable (CWI) reserves of 520.3 MMboe comprised of 495.4 million barrels (MMbbls) of oil (including condensate and other liquids) and 140.1 billion cubic feet (Bcf) of natural gas.

These volumes represent the Company’s commercial reserves, class 1-3, under the Norwegian Petroleum Directorate classification.

By John Lee.

DNO International ASA, the Norwegian oil and gas company, has announced record 2012 net profit of NOK 1.04 billion on operating revenues of NOK 2.84 billion. Fourth quarter 2012 net profit was NOK 810 million on operating revenues of NOK 1.43 billion. Shares in the company closed 2.8 percent higher on Tuesday.

In other milestones, 2012 exploration and development expenditures were raised to NOK 1.22 billion and the Company’s gross production capacity jumped by 85 percent to around 140,000 barrels of oil equivalent per day (boepd).

Fourth quarter production on a Company Working Interest basis reached 46,398 boepd, compared to an average of 38,354 for the full year.

Bijan Mossavar-Rahmani (pictured), DNO’s Executive Chairman, said:

“We are thrilled to have surpassed the billion NOK mark in net profits. DNO doubled exploration and development spending in 2012 and funded the program from operating cash flow. Based on current plans, we expect to boost spending another 50 percent to NOK 1.75 billion in 2013.“

The Company’s yearend cash balance was NOK 1.51 billion, unchanged from a year earlier. Yearend equity ratio was 55 percent.

(Sources: DNO, Yahoo)

By John Lee.

Genel Energy has started shipping crude oil directly into Turkey from its Taq Taq oil field (pictured) in Iraqi Kurdistan, two weeks after exports from the region were halted, reports Bloomberg.

According to the report, the KRG won’t resume exports through the central government pipeline network until the federal authorities pay the 350 billion dinars ($300 million) dues owed to international companies working in the Kurdish area.

Gulf Keystone Petroleum (GKP), which also has production in the semi-autonomous area, isn’t exporting crude and sells only in the domestic market, as does Norway’s DNO International.

Kurdish authorities plan to complete oil and gas pipelines running directly to Turkey within the next two years.

(Source: Bloomberg)

DNO International has announced that its long-serving Managing Director, Helge Eide (pictured), is stepping down effective 31 December 2012.

“After almost 17 years at DNO International, including the past 13 years as Managing Director, it was time to make way for a new generation of leadership,” said Eide. He noted that he originally considered leaving his position in 2011 but extended his tenure to help navigate DNO International through its transformative merger with RAK Petroleum PCL that became effective early this year.

Bijan Mossavar-Rahmani, DNO International’s Executive Chairman, said he accepted the decision with great reluctance but deep appreciation for Eide’s dedicated service to the Company. “Helge leaves his position on a high note as 2012 has shaped up to be DNO International’s best year ever by so many operational, financial and governance measures,” he added.

DNO International has instituted a search for a replacement and in the interim has named Bjørn Dale, its General Counsel, to the additional position of Acting Managing Director.

Under Eide’s termination agreement, he will continue to advise the Company on strategy and business development.

(Source: DNO)

By John Lee.

DNO International was advised by the Kurdistan Regional Government that a payment of USD 160 million was transferred last night for distribution to the foreign members of the Tawke joint venture in partial payment for past oil exports of oil from the Tawke field in the Kurdistan Region of Iraq. DNO’s share of the payment is USD 116 million with the balance to be transferred to partner Genel Energy plc.

DNO will record its share of the payment in the fourth quarter of 2012. This is the third payment received by the company for oil exported from the Tawke field during 2009, 2011 and 2012. Previous payments were received in September 2011 for USD 60 million and in June 2011 for USD 104 million, bringing the total received from Baghdad for exports to USD 280 million.

“We are pleased to receive this latest payment as we continue to increase production capacity at Tawke and develop our other Kurdistan discoveries,” said Bijan Mossavar-Rahmani (pictured), DNO’s Executive Chairman.

DNO is the operator and holds 55 percent interest of the Tawke license.

(Source: DNO)