Oslo, 18 August 2016 - DNO ASA, the Norwegian oil and gas operator, today announced a second consecutive quarter of operating profits and the launch of an aggressive drilling campaign at the company's flagship Tawke field in the Kurdistan region of Iraq.
Following an extensive workover campaign at Tawke, five new production wells will be drilled in the second half of the year to boost capacity. Two rigs are currently active at Tawke; the Tawke-31 well, targeting the main Cretaceous reservoir, is the first production well to be drilled at the field since late 2014 and will reach target depth of 2,200 meters in September. A third rig will be added to drill an appraisal well in the fourth quarter at the previously discovered Peshkabir field.
The company's operated production in the second quarter climbed 27 percent to 122,900 barrels of oil equivalent per day. Tawke production stood at 117,000 barrels of oil per day, nearly all of which was exported at an average price of USD 34 per barrel.
Company-wide revenues reached USD 61 million, marking the fifth consecutive quarter in which revenues totaled USD 50 million or higher. DNO's operating profit in the second quarter was USD 16 million, up from USD 8 million the previous quarter.
"Resumption of regular and predictable export payments underpin new investments at Tawke and other fields," said DNO's Executive Chairman Bijan Mossavar-Rahmani. "There is more value we can unlock in Kurdistan," he added.
The company last month launched a cash and shares offer to acquire Kurdistan-focused Gulf Keystone Petroleum conditional upon completion of the latter's financial restructuring, timely and irrevocable undertaking of support by the largest noteholders and bondholders and approvals from the Kurdistan Regional Government. Combined, DNO and Gulf Keystone would place first among European independent E&P companies in terms of production and also proven and probable (2P) reserves.
DNO ASA is a Norwegian oil and gas operator focused on the Middle East and North Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Yemen, Oman, the United Arab Emirates, Tunisia and Somaliland.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.