As a result of higher production DNO International ASA delivered increased revenues and improved results from operations in the third quarter.
"I am pleased to note that the good trend in our financial results and cash flow from operations continued into the third quarter. DNO will now enter a period of increased exploration activities and we are also about to secure new exploration acreage both in Mozambique and Yemen. This forms a solid platform for further growth of our Company", says Managing Director Helge Eide.
The cash position increased by NOK 114 million in the third quarter, bringing DNO's cash position to NOK 936 million by end the period. The year to date cash position has increased by NOK 633 million.
The financial results in the quarter are affected by special items. To comply with the IFRS accounting standards, a provision of NOK 322 million related to claims and legal costs in connection with the ongoing arbitration process has been recorded in the third quarter accounts. DNO continues to dispute the terms and conditions in the arbitration process.
DNO's working interest production increased to 24,956 bopd in the third quarter, up from 15,748 bopd in the second quarter.
See attached documents for full information.
Oslo, 11 November 2010
DNO International ASA