DNO ASA, the Norwegian oil and gas operator, today announced half-year 2017 revenues were up 43 percent from the same period last year following regular export payments in the Kurdistan region of Iraq.
Free cash flow jumped four-fold to USD 157 million on operated production of 114,000 barrels of oil equivalent per day (boepd) during the first half of the year.
DNO's cash balance rose USD 120 million during the first six months to USD 381 million, reducing net debt to USD 19 million. Planned 2017 capital expenditures have been increased to USD 130 million, up from the guidance set earlier this year of USD 100 million.
The Company mobilized a third rig as part of an expanded drilling program at its flagship Tawke field comprising 10 production wells in 2017, of which six are deep Cretaceous and four shallow Jeribe wells.
Also on the Tawke license, the Peshkabir-2 well has been producing from the Cretaceous reservoir at a steady rate of 4,700 barrels of oil per day (bopd) of 28° API crude oil since June. The well can produce an additional 2,500 bopd of 24° API crude oil from the Jurassic reservoir.
The Peshkabir-3 well, spud in July, is drilling at 2,400 meters towards target depth of 4,000 meters to appraise the northern extension of the Cretaceous reservoir. An early production facility has been acquired for installation at the field, with both Peshkabir wells planned onstream by year-end and two additional wells planned in 2018.
Elsewhere, the Company will participate in Norway's two upcoming licensing rounds in the autumn and expects to add to its 11 North Sea licenses acquired earlier this year.
Offshore Oman, the West Bukha-5B well was drilled to 4,500 meters and tested oil but would not flow naturally and has been shut in pending completion of artificial lift studies. The Company has impaired the drilling costs in its half-year accounts. Separately, the Bukha-1 well umbilical replacement and production reinstatement is nearly complete.