By John Lee.
Shares in DNO International, the Norwegian oil and gas company with significant interests in Iraqi Kurdistan, were trading up 5.4 percent on Thursday morning after the company announced third quarter 2013 net profit of NOK 282 million [$45 million] on operating revenue of NOK 810 million [$130 million].
The shares are now priced at a new high of 19.88 krone.
Production climbed by around a third to a record level of 52,780 barrels of oil equivalent per day (boepd) on a company working interest basis, up from 38,720 boepd in the second quarter of 2013.
Bijan Mossavar-Rahmani (pictured), DNO International's Executive Chairman, said:
"We are pleased to have delivered record production in the quarter ... Looking ahead, the excellent results from our horizontal drilling program at the Tawke field in the Kurdistan region of Iraq during the third quarter will continue to move the needle for the Company in terms of the field's production performance and ultimate recovery potential."
Elsewhere in Kurdistan, fast track development of the Summail gas discovery was initiated during the quarter following the signing of a gas sales and purchase agreement to supply gas to the city of Dohuk for local power generation.
Appraisal and development of the heavy oil Benanan and Bastora discoveries in the Erbil block also gathered pace with temporary production facilities installed at both the Benenan-3 and Bastora-2 well sites and government approvals to initiate sales from the wells.
In Yemen, the Salsala-1 oil discovery has added incremental barrels close to infrastructure that will allow for rapid monetization and raise DNO International's output in that country.
The Company is continuing with high levels of drilling activity with three rigs operating in Kurdistan and one in Yemen as at the reporting date. Operational cash flow of NOK 1,215 million has substantially funded capital spending of NOK 1,266 million during the first nine months of the year. The Company has maintained a robust capital structure with a free cash balance of NOK 1,577 million and net cash position of NOK 187 million as at September 30, 2013.
(Sources: DNO, Yahoo!)