DNO International announced its third-quarter operating profit of US$3.06mn - from a US$21.8mn loss a year ago - and stated it would be expanding its operations in the region.
"I am very pleased with our achievements so far this year. We have reached new milestones in our operations and our financial position is stronger than ever", said Helge Eide, Managing Director of DNO International ASA.
The company's new cash-strong position and finalisation of the merger between DNO and RAK Petroleum by January 2012 means that: "the enlarged and combined enterprise is well positioned to grow into a significant larger E & P Company in the MENA region", says Helge Eide.
Vision
"DNO is now entering a new era with exciting opportunities ahead. We will expand and grow the company in the Middle East and North Africa region (MENA) with the vision to become a significantly larger player in the region. The merger marks our first step in this growth plan," added Eide.
Eide expanded this, saying: "the combined organization..will put the company in a stronger position, both to extract more values from the enlarged portfolio, but also to seek new entries in the MENA region going forward."
US$600mn
In September DNO received US$600mn as the second payment related to exports from the Tawke field in the Kurdistan region of Iraq.
Tawke field
DNO said the output at its key Kurdish Tawke field slowed in the third quarter due partly to pipeline problems, and said production would likely "continue at current levels" ahead.
The field produced 52,000 barrels per day(bpd) on average in the third quarter. DNO said it would seek to upgrade capacity at Tawke to 100,000 bpd from the current 70,000 bpd if its contract terms were clarified.
Delayed
Eide said a field development that was key to reversing DNO's production slide in Yemen had been delayed by a year to mid-2013 "essentially because of the political unrest" in the Middle Eastern country.
