DNO ASA, the Norwegian oil and gas operator, has announced second quarter 2014 net profit of $44 million on operating revenue of  $143 million.
Production climbed to a record 138,569 barrels of oil equivalent per day (boepd), up 76% from the first quarter. Company working interest (CWI) production jumped 78% from the previous quarter to 81,669 boepd.
Notwithstanding significant quarterly investments of $97 million, DNO maintained its strong financial position with free cash balances of $195 million at the end of the quarter. In addition to cash, the Company held $104 million in financial assets, including a 4.7% stake in RAK Petroleum PCL, with the balance in DNO treasury shares.
“We’ve had feet on the ground in Kurdistan for ten years, including during the recent crisis as well as in past ones, and remain fully and firmly committed to our operations,” said Bijan Mossavar-Rahmani, DNO’s Executive Chairman. The Company last quarter celebrated its 10th anniversary as the first Western oil company to explore in Kurdistan by setting three new single day records at the Tawke field: daily production record of 133,192 barrels, daily deliveries to Fish Khabur for onward transfer to Ceyhan of 126,048 barrels and daily local sales of 114,760 barrels.
“Our next challenge is to properly monetize all oil produced at Tawke by tapping international markets,” said Mr. Mossavar-Rahmani.
In addition to previously reported plans to expand production at the Tawke and Benenan fields in Kurdistan, DNO will launch later this year an active exploration campaign in a new onshore block in Oman and commence exploration and appraisal drilling offshore Tunisia.
