DNO is pleased to report oil production for June and second quarter 2009. Export of crude oil from the Tawke field commenced 1 June 2009 and DNO's working interest production increased to 28,226 bopd in June and to 16,815 bopd in second quarter 2009.
DNO's working interest (WI) production from Yemen in second quarter 2009 was 7,878 bopd, with DNO's net entitlement production being 5,788 bopd. Average realized oil price in second quarter was USD 59/bbl. The YTD production to DNO from Yemen continues to be in line with management expectations.
Production from Yemen is reported as follows:
The WI production figures include crude oil consumed in the operation of the Company's production facilities, at an accumulated volume of 292 bopd in June 2009 and 284 bopd in Q2 2009.
DNO's working interest (WI) production from Kurdistan in second quarter 2009 was 8,937 bopd, with DNO's net entitlement production being 5,965 bopd
Production from Tawke is reported as follows:
The WI production figures include crude oil consumed in the operation of the Company's production facilities, at an accumulated volume of 12 bopd in June 2009.
Export of crude oil from the Tawke field commenced 1 June 2009, and gross production from Tawke in June was 22,840 bopd. Out of total gross production, gross export volume from Tawke was 17,914 bopd. Local sales of crude oil to the domestic market is expected to continue along with export sale for the time being, and in June gross local sale contributed with 5,430 bopd. The decrease in stock increased gross sale from Tawke with 518 bopd.
The Tawke production and export has continued to increase in line with the plan agreed with the KRG and North Oil Company (NOC) , and the July month to date gross production from Tawke has been approximately 40,000 bopd, of which approximately 32,000 bopd have been delivered for export. The plan is to establish an export rate at full capacity as quickly as possible in a safe and prudent manner, and it is expected that the Tawke production and export will continue to increase during the coming weeks. Fine-tuning and adjustments of the facilities are undertaken as required and the daily export volumes may therefore show some variation during the run-in period.
DNO has been advised by KRG that a payment mechanism for exported crude oil from Tawke will be in place soon. Until this is determined DNO will include its estimated share of revenues from such exports in the Company's financial statements on net entitlement basis, applying estimates for achieved oil prices, net of applicable discounts. The 2009 second quarter financial results will include such estimated revenues for the month of June.
Accounting for local area sales from the Tawke field will continue in line with the current financial reporting.
DNO International ASA
24 July, 2009