DNO International ASA announced its interim results for the first quarter 2008. DNO reported operating revenues of NOK 422 million (NOK 263 million) and a net profit of NOK 62 million (NOK 19 million) in the first quarter 2008.
Helge Eide, Managing Director of DNO International, stated: "We are very pleased with both our operational as well as our financial achievements in the first quarter, and the Company can report strong growth in the financial results resulting in a strengthened cash flow and profitability. Our exploration efforts have resulted in three oil discoveries, all in new areas, which we expect will further increase our resource base at low costs during 2008."
Three oil discoveries were made in the first quarter, all from exploration wells drilled in new areas. The Hawler #1 exploration well in the Erbil PSC area in Kurdistan Region of Iraq tested 11,000 bopd aggregated from two tests in the Jurassic interval. The first test delivered 9,000 bopd and this rate is expected to be limited by surface test equipment.
In Block 47 in Yemen, the Sharnah #1 well has confirmed oil from recent testing, and the Yaalen #1 well drilled earlier this year will be tested immediately after completion of testing the Sharnah #1 well. In addition the Bayoot SW # 5 appraisal well in Block 53 in Yemen tested 2,500 bopd, increasing the total well production capacity for the Bayoot area to approximately 5,000 bopd.
The total gross delivery from DNO's producing assets was 31,224 bopd, which is four percent ahead of plan. DNO's working interest (WI) production during the first quarter was 17,752 bopd, compared to a guided volume of 16,000 bopd. DNO's WI production from the Tawke field has now been adjusted in accordance with the revised PSC terms, and is different compared to the preliminary reported figures.
During the first quarter DNO's Net Entitlement (NE) production was 14,404 bopd and the achieved oil price was USD 62 per barrel, which is in line with the previously reported figures.
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