Oslo, 30 April 2014 -- DNO International ASA ("DNO"), the Norwegian oil and gas company, today released its 2013 Annual Report and Accounts detailing the Company's operating performance and audited financial results together with its Annual Statement of Reserves.
DNO reported record levels of operating revenue of NOK 2,967 million and operating cash flow of NOK 1,727 million in 2013, driven by strong production performance at the Company's assets in the Kurdistan region of Iraq, Oman and Yemen. Oil and gas production in 2013 rose to 39,170 barrels of oil equivalent per day (boepd) on a Company Working Interest (CWI) basis, up from 38,354 boepd in 2012.
Operating profit stood at NOK 362 million following one-off charges for goodwill and other impairments. Absent these charges, operating profit would have totaled a record NOK 1,479 million. In 2013, profit before and after tax were NOK 305 million and NOK 127 million, respectively. These results came below preliminary numbers released in February following a non-cash impairment charge from revision and reclassification of certain reserves to the contingent category.
Exploration and development expenditures were NOK 1,756 million in 2013 funded by operating cash flow and the Company maintained a strong financial position at yearend as its free cash balance increased to NOK 1,603 million from NOK 1,498 million at yearend 2012.
The Company continued to make steady progress towards its ambitious capacity expansion plans at the flagship Tawke field in Kurdistan, and in particular recorded great success from horizontal drilling at the field. Elsewhere in Kurdistan, the Company became the first to sign a gas sales and purchase agreement with a state buyer and launched fast track development of the Summail gas field, submitted a field development plan for the Peshkabir oil discovery and proceeded with appraisal and early development of the Benanan and Bastora heavy oil fields. The Company reported exploration drilling success in 2013, making two new oil discoveries, and materially grew its exploration and appraisal portfolio with the addition of four new blocks located in both frontier and established hydrocarbon basins.
DNO delivered growth in reserves for the fourth consecutive year with a reserve replacement ratio of 152 percent in 2013. The Company's Annual Statement of Reserves, published in accordance with Oslo Stock Exchange Circular no. 9/2009, set total remaining proved and probable (2P/P50) reserves at 541.9 million barrels of oil equivalent (MMboe) on a CWI basis as at yearend 2013. The comparable figures for yearend 2012, yearend 2011, yearend 2010 and yearend 2009 were 520.3 MMboe, 371.9 Mmboe, 194.2 Mmboe and 149.4 MMboe, respectively.
The increase in 2013 was driven principally by the addition of new reserves associated with the Summail gas field and the Peshkabir oil field combined with an upward revision at the Benenan oil field, all located in Kurdistan. The first two horizontal wells at the Tawke field were completed too late in the year to incorporate performance data into the field reservoir model and allow for a full field reserves revision which will be undertaken in 2014 with additional results from another four to six horizontal wells.
The Company's yearend 2013 proved and probable (CWI) reserves of 541.9 MMboe comprised of 507.1 million barrels (MMbbls) of oil (including condensate and other liquids) and 195.4 billion cubic feet (Bcf) of gas. These volumes represent the Company's commercial reserves, class 1-3, under the Norwegian Petroleum Directorate classification. In addition to its class 1-3 2P CWI reserves, the Company held 99.4 MMboe in 2C contingent resources, class 4-7 on a CWI basis. International petroleum consultants DeGolyer and MacNaughton conducted an independent assessment of the majority of the Company's assets; those assets with minor or no change in reserves and resources since 31 December 2012 were assessed by the Company.
The 2013 Annual Report and the 2013 Annual Statement of Reserves are attached and are also available on the Company's website www.dno.no.
--- DNO International ASA is an Oslo-listed, Middle East and North Africa focused oil and gas company holding stakes in 20 blocks in various stages of exploration, development and production both onshore and offshore in the Kurdistan Region of Iraq, the Republic of Yemen, the Sultanate of Oman, the United Arab Emirates, the Tunisian Republic and Somaliland ---
Oslo, 30 April 2014
DNO International ASA
Queries: Bjorn Dale (email@example.com or tel: +47 911 57 197)