Norway: DNO’s Financial Position Stronger than Ever, CEO Says

DNO International ASA is reporting net profit of NOK 299 million for the third quarter of 2011 versus a loss of NOK 146 million in the same quarter 2010. The strong result is affected by a net positive finance of NOK 301 million in this quarter.

In the third quarter the Company delivered a Working Interest production of 36,773 bopd, up from 24,956 bopd in the same period last year.

“I am very pleased with our achievements so far this year. We have reached new milestones in our operations and our financial position is stronger than ever”, says Helge Eide, Managing Director of DNO International ASA.

As previously reported; in September DNO received USD 60 million as the second payment related to exports from the Tawke field in the Kurdistan region of Iraq. The payment has not been recognized as revenue but booked as a prepayment, because the IFSR revenue recognition requirement is not fulfilled.

On 3 September, the boards of directors of DNO International ASA and RAK Petroleum PCL agreed to merge RAK’s MENA operating companies into DNO. The shareholders of both companies have approved the merger and the transaction is expected to close in January 2012 following the mandatory two months creditor notification period.

“The enlarged and combined Enterprise is well positioned to grow into a significant larger E & P Company in the MENA region, and through that create additional values for our shareholders”, says Helge Eide.

[mappress]
Source: DNO , November 9, 2011