Norway’s DNO ASA doubled its profit in the first half as the company delivers the largest drilling program in its 48-year history.
The company, which has assets in Iraqi Kurdistan and North Sea, said its first half revenue totalled US$470 million, up 62 per cent from the same period last year, while net profit doubled to $119 million.
DNO’s company working interest (CWI) production averaged 107,100 barrels of oil equivalent per day (boepd) in first-half 2019, up 39 per cent from first-half 2018, reflecting strong contributions from its fields in the Kurdistan region of Iraq (89,300 barrels of oil per day or bopd) as well as from its recently acquired North Sea assets (17,800 boepd).
In Kurdistan, first-half 2019 gross production at the Tawke license containing the DNO-operated Tawke and Peshkabir fields (shared 75-25 with Genel Energy plc) averaged 126,700 bopd, up 20 per cent from first-half 2018. Meanwhile, Tawke contributed 71,700 bopd and Peshkabir 55,000 bopd.
DNO said 36 wells are planned in 2019 of which 23 are development/infill wells and 13 exploration/appraisal wells. DNO projects full-year operational spend of $680 million, split evenly between its core areas in Kurdistan and the North Sea.
In addition to 15 wells spud in the first half of the year across the portfolio, plans for the second half include 12 wells at Tawke and three at Peshkabir, now the second largest operated field by an international oil company in Kurdistan after Tawke.
Also in Kurdistan, two wells have been drilled and completed in the DNO-operated Baeshiqa license with the deeper well to be tested beginning in August.
Elsewhere, the company is pursuing an active North Sea strategy with plans to drill six more wells in the second half of the year in addition to the nine spud in the first half. Also, DNO was recently awarded as operator two new exploration licences in the United Kingdom.
DNO exited the second quarter with a cash balance of $574 million in addition to $94 million in treasury shares and marketable securities.