By John Lee.
DNO International ASA, the Norwegian oil and gas company, today announced first quarter 2014 net profit of USD 24 million on operating revenue of USD 113 million.
Production climbed by more than a quarter from the previous quarter to 45,744 barrels of oil equivalent per day on a company working interest (CWI) basis.
The first quarter production figure includes oil deliveries from the Tawke field in Kurdistan to storage facilities in Ceyhan, Turkey. These deliveries were stepped up commencing April 26 and have been averaging some 100,000 barrels per day gross over the past ten days from a total field production of over 120,000 barrels per day, with the balance sold to the local market in Kurdistan.
"We have our foot firmly on the accelerator in Kurdistan where we are now the fastest growing producer and also number one in proven and probable oil and gas reserves," said Bijan Mossavar-Rahmani, DNO International's Executive Chairman.
During the quarter, operational cash flow of USD 89 million exceeded capital spending of USD 85 million. The Company's free cash balance at 31 March was USD 242 million in addition to which the Company held financial assets totalling USD 95 million. These financial assets include DNO International treasury shares and a 4.2 percent stake in RAK Petroleum PCL, DNO International's largest shareholder.
Operationally, horizontal drilling has continued to deliver exceptional results at the Tawke field. During the first quarter, the Company brought two more high deliverability horizontal wells on production as part of its back-to-back drilling campaign that will see nine such wells completed by yearend. Elsewhere in Kurdistan, the Company has initiated first sale of oil from the Benenan field and first flow of gas from the Summail field.
Additionally, the Company has an active exploration and appraisal drilling program over the next nine months targeting gross prospective resources of 570 million barrels of oil with seven wells across four countries.