Shares in DNO International closed up more than 11% on Wednesday after the company announced strong performance in the second quarter of 2011 with a working interest production of 48,582 barrels of oil per day (bopd), doubling of the reserves at the Tawke field and good financial performance.
Sales recognized in the second quarter this year increased to NOK 732 million, up from NOK 284.7 million in the same quarter 2010. EBITDA was NOK 564.9 million in this quarter, up from NOK 171.2 million in the second quarter last year.
"DNO International achieved strong results so far this year. The excellent reservoir quality of the Tawke field in the Kurdistan Region of Iraq has been proved through stable high production in the first half of 2011. I am also very satisfied with our Yemen team that has maintained our planned production level and good cash flow despite the difficult situation in the country", says Managing Director Helge Eide.
"The reported cash position of NOK 1.25 billion at the end of the second quarter and the additional NOK 521 million in proceeds from the today announced sale of shares in Det norske oljeselskap ASA provides a rock solid financial platform for further development and growth of DNO International", says Eide.
The company also said it would temporarily lower production at its Tawke field from 70,000 barrels of oil equivalent per day (boed) to 50,000 to facilitate reservoir monitoring activities.