Kurdistan-focused Norwegian explorer DNO has beat analysts’ expatiations for the third quarter of 2011 by posting quarterly operating profit NOK 17.4 million, up from a NOK 124 million lost last year.
An analysts’ poll conducted by Reuters predicted the firm would post a NOK 1 million loss.
The company has confirmed it is sitting on a NOK 1.97 billion cash pile ahead of its all-share absorption of RAK Petroleum’s MENA assets, and its executive chairman is looking for further acquisitions.
“We will take an active part in acquisitions and other transactions that will grow the company further,” DNO’s chief executive Helge Eide told Reuters after posting better-than-expected third-quarter results on Wednesday.
Depending on legal and political developments in the region, the company may try to restore production in Yemen, or boost production capacity at the Tawke field in Iraqi Kurdistan where the company holds a 55% interest.
The company has booked payments from the Kurdish Regional Government as cash assets until the legal status for oil exported under production sharing agreements with the KRG is resolved with Baghdad.
Pending successful completion of its merger with RAK Petroleum DNO is on track for a London listing around mid-2012.
