DNO International ASA - June & second quart...
("DNO" or "the Company")
DNO is pleased to report oil production for June and second quarter
2009. Export of crude oil from the Tawke field commenced 1 June 2009
and DNO's working interest production increased to 28,226 bopd in
June and to 16,815 bopd in second quarter 2009.
Yemen production
DNO's working interest (WI) production from Yemen in second quarter
2009 was 7,878 bopd, with DNO's net entitlement production being
5,788 bopd. Average realized oil price in second quarter was USD
59/bbl. The YTD production to DNO from Yemen continues to be in line
with management expectations.
Production from Yemen is reported as follows:
(Bopd) Q1 2009 June-09 Q2 2009 YTD-09
Gross field production 18,511 18,665 19,057 18,786
DNO's working interest (WI) 7,925 7,670 7,878 7,901
DNO's net entitlement (NE) 5,936 5,544 5,788 5,862
Achieved oil price (USD/bbl) 43 69 59 51
The WI production figures include crude oil consumed in the operation
of the Company's production facilities, at an accumulated volume of
292 bopd in June 2009 and 284 bopd in Q2 2009.
Tawke production
DNO's working interest (WI) production from Kurdistan in second
quarter 2009 was 8,937 bopd, with DNO's net entitlement production
being 5,965 bopd
Production from Tawke is reported as follows:
(Bopd) Q1 2009 June-09 Q2 2009 YTD-09
Gross Tawke production 3,179 22,840 9,929 6,573
DNO's working interest (WI) 2,861 20,556 8,937 5,915
DNO's net entitlement (NE) 1,908 13,723 5,965 3,948
The WI production figures include crude oil consumed in the operation
of the Company's production facilities, at an accumulated volume of
12 bopd in June 2009.
Export of crude oil from the Tawke field commenced 1 June 2009, and
gross production from Tawke in June was 22,840 bopd. Out of total
gross production, gross export volume from Tawke was 17,914 bopd.
Local sales of crude oil to the domestic market is expected to
continue along with export sale for the time being, and in June gross
local sale contributed with 5,430 bopd. The decrease in stock
increased gross sale from Tawke with 518 bopd.
The Tawke production and export has continued to increase in line
with the plan agreed with the KRG and North Oil Company (NOC) , and
the July month to date gross production from Tawke has been
approximately 40,000 bopd, of which approximately 32,000 bopd have
been delivered for export. The plan is to establish an export rate at
full capacity as quickly as possible in a safe and prudent manner,
and it is expected that the Tawke production and export will continue
to increase during the coming weeks. Fine-tuning and adjustments of
the facilities are undertaken as required and the daily export
volumes may therefore show some variation during the run-in period.
DNO has been advised by KRG that a payment mechanism for exported
crude oil from Tawke will be in place soon. Until this is determined
DNO will include its estimated share of revenues from such exports in
the Company's financial statements on net entitlement basis, applying
estimates for achieved oil prices, net of applicable discounts. The
2009 second quarter financial results will include such estimated
revenues for the month of June.
Accounting for local area sales from the Tawke field will continue in
line with the current financial reporting.
DNO International ASA
24 July, 2009
Contact:
Media:
Helge Eide, MD DNO International ASA Telephone: +47 23 23 84 80
Ketil Jørgensen, Crux Communication Telephone +47 930 36 866
(Norway)
Ben Willey, Buchanan Communications Telephone: +44 207 466 5000
(UK)
Investor Relations:
Haakon Sandborg, CFO DNO International Telephone: +47 23 23 84 80
ASA
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