DNO ASA reported doubling its web revenue to $35 million sequentially within the second quarter.
The Norwegian oil and fuel firm posted income of $137 million for the quarter, in comparison with $183 million within the earlier quarter, in line with a current earnings launch.
Internet manufacturing rose six % to 79,400 barrels of oil equal per day (boepd), of which Kurdistan contributed 59,800 boepd, the North Sea 16,300 boepd and West Africa 3,300 boepd, DNO stated.
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On the finish of the quarter, DNO held money deposits of $943 million and web money of $158 million. On the again of strong outcomes, a powerful steadiness sheet and outlook, the corporate’s board has approved a dividend cost of NOK 0.3125 per share in August, up 25 % from prior quarterly distributions.
DNO stated it elevated spending in Kurdistan in the course of the quarter to optimize manufacturing from present wells on the flagship Tawke license, which it operates with a 75 % stake, elevating gross output from the Tawke and Peshkabir fields to a mean of 83,500 boepd within the first half of the third quarter, up 5 % from the second quarter and 9 % from the primary quarter. To assist handle pure discipline decline, along with putting beforehand drilled wells into manufacturing, DNO is making ready to mobilize a rig to drill the primary new nicely on the license since early 2023.
On its different operated license in Kurdistan, Baeshiqa, DNO has began a 72-day testing program on the newly drilled B-3 nicely.
“We’re not realizing full worth for our Kurdistan barrels with the shutdown of the Iraq-Türkiye export pipeline, now twisted right into a Gordian knot,” DNO Government Chairman Bijan Mossavar-Rahmani stated. “Till the knot is lower, we’ll compensate by spending extra to provide extra and by requiring funds upfront to our worldwide financial institution accounts”.
In the meantime, the corporate introduced a discovery within the North Sea on the Cuvette prospect, DNO’s eighth discovery since 2021 within the extremely prolific space surrounding the Troll and Gjøa manufacturing hubs. The opposite discoveries are Røver Nord, Kveikje, Ofelia, Røver Sør, Heisenberg, Carmen and Kyrre, all near infrastructure and with clear routes in the direction of commercialization, it stated.
DNO can be including to its present North Sea manufacturing by means of acquisitions. Within the second quarter, DNO accomplished the acquisition of a 25 % stake in UK’s Arran discipline and introduced the bolt-on acquisition of Norne space property in Norway anticipated to shut within the third quarter.
To organize for investments throughout its portfolio, together with acquisitions, the corporate issued a brand new $400 million five-year bond with a coupon price of 9.25 % to complement an present bond with a remaining steadiness of $350 million. The providing was considerably oversubscribed and achieved a decrease credit score unfold than earlier DNO bonds, reflecting the corporate’s “sturdy monetary place and outlook in addition to flawless bond observe document of 18 points over the previous 23 years,” it famous.
DNO ASA is a Norwegian oil and fuel operator lively within the Center East, the North Sea and West Africa. Based in 1971 and listed on the Oslo Inventory Change, the corporate holds stakes in onshore and offshore licenses at numerous levels of exploration, growth, and manufacturing within the Kurdistan area of Iraq, Norway, the UK, Côte d’Ivoire, Netherlands, and Yemen.
To contact the writer, e-mail rocky.teodoro@rigzone.com
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