DNO ASA, the Norwegian oil and gas operator, today released its 2017 Annual Report and Accounts together with its 2017 Annual Statement of Reserves and Resources, reporting an increase in operating profit and improvements across other key financial and operational metrics.
Founded in 1971 and listed on the Oslo Stock Exchange with the code DNO. OL, the company holds stakes in onshore and offshore licences at various stages of exploration, development and production in the Kurdistan region of Iraq, Yemen, Oman, the United Arab Emirates, Tunisia and Somaliland. Its largest shareholder is UAE-based RAK Petroleum.
Annual 2017 revenues climbed to US$ 347 million, up 72 percent from the 2016 figures, the company said. Operating profit totalled US$ 521 million, up from US$ 6 million in 2016, with the recognition as other income of US$ 556 million under the August 2017 Kurdistan Receivables Settlement Agreement. Excluding the settlement agreement and non-cash impairments, DNO operating profit in 2017 more than doubled to US$ 72 million. Although operational expenditure last year reached US$ 259 million, double the 2016 figure, the company ended 2017 with a cash balance of USD 430 million.
Company Working Interest, CWI, production increased to 73,700 barrels of oil equivalent per day (boepd) from 69,200 boepd in 2016. Total production from DNO-operated fields, including those in which other companies have stakes, rose to 113,500 boepd in 2017, up from 112,600 boepd in 2016. Lifting costs last year averaged US$ 3.6 per barrel of oil equivalent.
DNO’s production continues to be driven by the Tawke field in Kurdistan, where output in 2017 averaged 105,500 barrels of oil per day (bopd). The adjacent Peshkabir field, brought on stream in the middle of 2017, contributed another 3,600 bopd to bring total Tawke licence production to 109,100 bopd for the year. DNO plans to boost production from this licence area in 2018 by drilling ten new wells, the report said.
“We are committed this year (2018) to continue to outdrill, outproduce and outperform all other international companies in Kurdistan – combined,” DNO’s Executive Chairman, Bijan Mossavar-Rahmani, commented.
At year end 2017, DNO’s CWI 1P reserves climbed to 240 million barrels of oil equivalent (MMboe) from 219 MMboe at year end 2016, after adjusting for production during the year, technical revisions and an increase in DNO’s operated stake in the Tawke licence from 55 percent to 75 percent under the terms of the August 2017 agreement. On a 2P basis, DNO’s CWI reserves stood at 384 MMboe (up from 368 MMboe) and on a 3P basis, DNO’s CWI reserves stood at 666 MMboe (up from 521 MMboe). DNO’s yearend 2017 CWI contingent resources (2C) were estimated at 99 MMboe, down from 161 MMboe at yearend 2016, following reclassification of certain contingent resources to reserves.
On a gross basis, at year end 2017, 1P reserves at the Tawke licence, containing the Tawke and Peshkabir fields, totalled 348 MMboe (353 MMboe at yearend 2016) after adjusting for production of 40 MMboe during the year and technical revisions; 2P reserves totalled 513 MMboe (536 MMboe at yearend 2016); 3P reserves totalled 880 MMboe (725 MMboe at yearend 2016) and 2C resources totaled 91 MMboe (211 MMboe at yearend 2016) following reclassification.
International petroleum consultants DeGolyer and MacNaughton carried out The annual independent assessment of the Tawke and Peshkabir fields was carried out by international petroleum consultants DeGolyer and MacNaughton, while DNO internally evaluated the remaining assets.