Norwegian oil and gas company DNO International delivered revenues of NOK 2,070 million ($362 million) in 2011, up from NOK 1,252 million ($219 million)a year earlier, and net profit of NOK 653 million in 2011 ($114 million) versus a net loss of NOK 283 million ($49 million) in 2010, according to the firm’s annual results posted yesterday.
The results are largely unchanged from what was reported in preliminary form to the market on 15 February. The company has posted its first annual profit, after partial payment from the Kurdish regional government and a merger of producing assets from RAK Petroleum.
DNO participates in 17 licenses in Yemen (five), the Kurdistan region of Iraq (three), Oman (four), Ras Al Khaimah (three) and Tunisia (two).
The company disclosed 371.9 million barrels of oil equivalent of reserves – calculated to a Norwegian Petroleum Directorate standard – on a working interest basis as of year-end 2011 across its pre-RAK Petroleum assets.
DNO recorded its highest working interest production of 51,315 bopd in 2011. Significant volumes extracted from the Tawke oilfield, which DNO operates with a 55% stake, make Kurdistan DNO’s primary E&P asset. The gross ultimate Tawke 2P/P50 reserves are estimated by DeGolyer and MacNaughton at 615 million barrels at year-end 2011.
For the Kurdish region, DNO saw 2011 revenues of NOK 1,432.5 million ($250 million) – 69% of group revenues – average production of 34,966 barrels of oil per day bpd and average lifting costs of $2.11 a barrel. DNO is plowing investment into hiking production at the Tawke field.
“2011 was an eventful and exciting year for DNO,” says managing Director Heide Elge. “It was also a transformational year with the decision to merge RAK Petroleum’s MENA portfolio of operating assets into DNO as the largest event. The company has now refocused its strategy, established a presence in five countries with participation in 17 licenses, the majority of which we operate, and is moving fast forward to realize our ambition to become a significant oil and gas player in the MENA region. It is safe to say that DNO today is a new company.”
