DNO issues Production Update

DNO ASA, the Norwegian oil and gas operator, will publish its Q3 2022 operating and interim financial results on 3 November 2022 at 07:00 (CET).

The Company issues below an update on production and sales volumes for the quarter as well as other key financial information that will be further discussed in the earnings call.

Volumes (boepd)

Gross operated production Q3 2022 Q2 2022 Q3 2021
  Kurdistan 109,054 107,178 105,179
  North Sea - - -
Net entitlement production Q3 2022 Q2 2022 Q3 2021
  Kurdistan 24,779 26,682 26,749
  North Sea 13,970 11,579 13,102
Sales Q3 2022 Q2 2022 Q3 2021
  Kurdistan 24,779 26,682 26,749
  North Sea 11,569 12,594 14,653

Selected cash flow items

During the quarter, DNO received USD 220.2 million net from the Kurdistan Regional Government, of which USD 133.8 million represents the entitlement share of April and May 2022 Tawke license crude oil deliveries. Of the balance, USD 18.0 million represents override payments equivalent to three percent of gross April and May 2022 Tawke license revenues and USD 68.4 million represents payments towards arrears built up from non-payment of certain invoices in 2019 and 2020.

DNO paid one tax instalment of USD 1.8 million in Norway, the first of six instalments related to estimated 2022 results on the Norwegian Continental Shelf (NCS).

Other items

DNO participated in four exploration wells in the North Sea in the quarter. The Ofelia well in PL 929 on the NCS (10 percent working interest) was spudded on 24 July and completed on 25 August and has been announced as a discovery. The Edinburgh well in P255 on the UK Continental Shelf (45 percent working interest) was spudded on 15 March and completed on 5 August. The Brage South well in PL 055 (14.3 percent working interest) on the NCS was spudded on 10 June and completed on 26 July. Both Edinburgh (fully expensed in Q2) and Brage South have been announced as dry wells. The Uer well in PL 943 on the NCS (30 percent working interest) was spudded on 21 September and drilling was still ongoing as of end of Q3 2022.

DNO announced on 22 August an agreement to acquire assets in West Africa in an all-share transaction with RAK Petroleum plc. The transaction was completed on 11 October, and does as such not impact the Q3 2022 results.

(Source: DNO)

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