DNO International ASA, the Norwegian oil and gas company, today announced record operational and financial results for 2011 and unveiled the most extensive drilling program in its 40-year history as it accelerated plans for a listing on the London Stock Exchange later this year.
Working interest (WI) production in 2011 more than doubled to 39,966 barrels of oil per day (bopd) versus 17,381 bopd in 2010. WI production in the fourth quarter was 34,656 bopd.
Record high 2011 production resulted in record high operating revenues of NOK 2,070 million in 2011, an increase of 65 percent over the previous year's NOK 1,251 million figure. For the fourth quarter, operating revenues were NOK 905 million.
Net profits for the fourth quarter 2011 hit NOK 203 million, bringing the full year figure to NOK 653 million compared to a loss of NOK 283 million in 2010.
The Company ended the year with a cash position of NOK 1,752 million.
"We are investing in additional production capacity through facilities upgrades and new wells across our portfolio and anticipate continuing increased production into 2012. There is also significant reserves upside from high impact exploration, appraisal and development drilling," said Helge Eide, CEO (pictured).
A total of 19 wells are scheduled to be drilled during 2012. Two wells are currently in progress in the Kurdistan region of Iraq with results expected during the first quarter. Offshore Oman, drilling of the first of a three-well development program in Block 8 is underway and slated for completion and tie-back in the second quarter. In Yemen, the Company expects to re-commence drilling in the first quarter of the year, conditions permitting.
In the Erbil license in Kurdistan, the field development plan for the previously announced Benenan and Bastora discoveries was submitted to governmental authorities in December and approval is expected this month. The first stage of the development plan will commence in the second quarter, including drilling of two horizontal development wells back-to-back.
Commenting on DNO International's plans, Mr Eide said, "Last year was a milestone year for the Company with record production and revenues. It was also a transformational year with the decision to acquire RAK Petroleum PCL's portfolio of operating assets. The enlarged group has now refocused its strategy, established a presence in five countries with participation in 17 licenses, the majority of which we operate, and is moving fast forward to realize our ambition to create a significant oil and gas player in the Middle East-North Africa region."