17.08.2023 07:00:07 - dpa-AFX: GNW-Adhoc: DNO Opens Taps at Tawke; Reports Second Quarter 2023 Results

Oslo, 17 August 2023 - DNO ASA, the Norwegian oil and gas operator, today
reported that production from its flagship Tawke field in Kurdistan has been
restarted following a four-month shut-in triggered by the closure of the Iraq-
Turkey Pipeline export route. Production was restarted last month to conduct
well integrity tests and synchronize reservoir models but has continued in
response to strong demand for Tawke oil. Field output is currently averaging
40,000 barrels of oil per day (bopd). The nearby Peshkabir field, on the same
license, remains closed.
One-half of Tawke production is delivered to the Kurdistan Regional Government
and the balance is sold by DNO on behalf of the contractors (DNO 75 percent and
Genel Energy International Limited 25 percent) to local trading companies and
the oil transported by road tanker. Prices vary by contract and average around
50 percent of pre-closure levels but payments now are made promptly and directly
to DNO.
"While there is no light at the end of the export pipeline, we are seeing the
headlights of more and more incoming tanker trucks loading up our Tawke cargoes
on a cash-and-carry basis," said DNO Executive Chairman Bijan Mossavar-Rahmani.
"Meanwhile, our strategy of broadening DNO's portfolio beyond Kurdistan is
bearing beautiful fruit," he added.
A total of 100 million barrels of oil equivalent (MMboe) have been discovered
net to DNO offshore Norway since 2021, of which 78 MMboe have been added so far
this year, driven importantly by DNO's 30 percent stake in Norway's largest
discovery in a decade (Carmen). Previous discoveries are moving towards
development. In June, the development of the Andvare discovery (DNO 32 percent)
and the Berling discovery (DNO 30 percent) received government approvals,
targeting gross volumes of 11 MMboe (start-up in 2024) and 45 MMboe (start-up in
2028), respectively. DNO also recently announced a fast-track development
concept for the Brasse discovery (DNO 50 percent) as a low-cost tieback to Brage
production facilities (DNO 14 percent) with main terms agreed ahead of final
investment decision early next year.
"All barrels of oil or molecules of gas are not created equal," said Mr.
Mossavar-Rahmani. "Our recent discoveries have high net present value as DNO's
offshore Norway drilling campaign is deliberately designed to target lower risk
prospects near existing infrastructure," he added. "We thought such low-risk
prospects would also be small to medium in size, but Carmen happily proved us
wrong."
The Company's Côte d'Ivoire assets, which were acquired last year, deliver
stable production and further upside potential. A gas sales contract
renegotiation with the government is ongoing to raise the price ceiling,
allowing for increased investment in Block CI-27 (DNO nine percent). On nearby
Block CI-12 (DNO eight percent) a rig has been secured for two exploration wells
plus one optional well, to be drilled back-to-back commencing in the fourth
quarter of 2023.
In the second quarter of 2023, net production across DNO's portfolio hit the
lowest level in 13 years at 14,400 barrels of oil equivalent per day (boepd), of
which the North Sea contributed 10,800 boepd, West Africa 3,500 boepd and
Kurdistan the balance. Driven by the Kurdistan export closure and a significant
North Sea production cut from a shutdown of third-party facilities that has now
ended, DNO reported a 78 percent quarter-on-quarter revenue drop to USD 58
million. Net loss amounted to USD 19 million, down from a net profit of USD 87
million in the previous quarter.
The balance sheet remains strong with an unchanged equity ratio of 50 percent as
the Company exited the quarter with cash deposits of USD 743 million and net
cash of USD 177 million. Given uncertain timing of pipeline export resumption
and continued delays in payments by the Kurdistan Regional Government for
previous oil sales, DNO has cut back new investment spend and staffing levels.
The Board of Directors has authorized dividend payment of NOK 0.25 per share to
be made on or about 1 September 2023, maintaining the Company's quarterly
distribution program.
A videoconference call with executive management will follow today at 10:00
(CET). Please visit www.dno.no to access the call.
Key figures
                                         Q2 2023   Q1 2023   Full-Year 2022
  Gross operated production (boepd)        65      94,720       107,637
  Net production (boepd)                 14,417    89,399        97,310
  Revenues (USD million)                   58        269         1,377
  Operating profit/-loss (USD million)     -15       155          431
  Net profit/-loss (USD million)           -19       87           385
  Free cash flow (USD million)            -144       35           619
  Net cash/-debt (USD million)             177       344          388

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For further information, please contact:
Media: media@dno.no
Investors: investor.relations@dno.no
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DNO ASA is a Norwegian oil and gas operator active in the Middle East, the North
Sea and West Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the
Company holds stakes in onshore and offshore licenses at various stages of
exploration, development and production in the Kurdistan region of Iraq, Norway,
the United Kingdom, Côte d'Ivoire, Netherlands and Yemen.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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Name WKN Börse Kurs Datum/Zeit Diff. Diff. % Geld Brief Erster Schluss
DNO ASA A NK -,25 865623 Frankfurt 0,980 31.05.24 08:07:46 -0,035 -3,45% 0,000 0,000 0,980 1,015

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