RAK Petroleum sees Q1 profits

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RAK Petroleum Public Company Limited, announced net operating profits of US$5.1mn for the quarter ended 31 March 2011 on turnover of US$17.1mn.

"During the first quarter, RAK Petroleum posted continued positive operating results and steady production averaging 9,000 barrels of oil and condensate and 33mn CFGPD while making preparations to drill four new wells, deepen an existing well and fracture and test still another well," said Bijan Mossavar-Rahmani, Chairman of the Board of Directors and Chief Executive Officer of RAK Petroleum.

The drilling program will begin in June and continue through the summer of 2012, he noted, and includes three development wells on Block 8 offshore Oman (50 percent operated interest with balance held by Korea's LG International), an exploration well on Block 31 onshore Oman (100 per cent) and deepening of an existing well on Saleh field, offshore Ras Al Khaimah (100 per cent) as a first step towards full field redevelopment.

In June, RAK Petroleum plans to re-enter and re-frack the Zad-2 well on Block 47 onshore Oman (50 per cent operated interest with balance held by Spain's Repsol Exploracion SA). The well was drilled and completed earlier this year with good gas shows in the Amin sandstones though insignificant flow was obtained at the surface.

At the end of April, RAK concluded an exchange agreement with RAK Gas LLC for the remaining 60 per cent of RAK B field offshore Ras Al Khaimah. This was in exchange for a legacy stake in RAK Airways shares held since the airline's inception.

"In addition to our own core operations, our strategic investment in DNO International will provide significant value for our shareholders over time," said Mossavar-Rahmani, who joined DNO International's Board of Directors in March.

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