DNO ASA, Oslo, increased its operating profit 84% in first-quarter 2022 to $236 million versus $128 million in fourth-quarter 2021 on revenues of $339 million ($396 million in fourth-quarter 2021), the company said as part of a first-quarter investor presentation.
Net profit for the quarter was $140.5 million, up from $64.8 million in the prior quarter. Net debt was decreased $126 million quarter-on-quarter to $27 million, the company said in an accompanying release May 12.
No change in operational spend for the year is expected. In February, DNO said it plans an operational spend of $800 million across the portfolio in 2022.
Kurdistan region of Iraq
Revesues from the Kurdistan region of Iraq were $209 million versus $180 million in fourth-quarter 2021. Gross production at the company’s onshore Tawke license (75%, operator) averaged 106,500 b/d of oil in the quarter, of which Peshkabir field contributed 64,500 b/d and Tawke field 42,000 b/d, the company reported in a May 12 earnings release. Of the total, 79,800 b/d of oil were net to DNO’s interest. North Sea net production averaged 12,700 boe/d, bringing the company’s total quarterly net production to 92,500 boe/d.
The company increased drilling activities in the region to maintain Tawke license gross production of 105,000 b/d of oil on average in 2022, and first phase field development of the operated onshore Baeshiqa license has been fast-tracked, it said, with a third well, Zartik-2, currently drilling at 2,300 m.
DNO demonstrated proof of concept of producing these wells through temporary test facilities, having trucked some 15,000 barrels of 40-degree API and 22-degree API oil for export in 2019 and 2020 from the Baeshiqa-2 and Zartik-1 discovery wells, according to an August 2021 company release. The company is ready to begin production from the Zartik-1 discovery well, pending final government approvals, the company noted in the earnings presentation.
DNO holds a 64% interest in the license after acquiring ExxonMobil’s 32% interest in 2021 (OGJ Online, Feb. 11, 2021).
North Sea
North Sea revenues of $131 million were down from $216 million in fourth-quarter 2021.
In the North Sea, DNO expects net production this year to remain 13,000 boe/d on average. The 2022 2022 exploration program comprising seven wells began with the Equinor-operated Kveikje discovery well (25-50 MMboe gross resources, DNO 20%) (OGJ Online, Apr. 11, 2022). The discovery has proven up a new play concept in an area offshore Norway where the company holds a sizable acreage position, the company said. Six additional exploration wells will be drilled this year (Edinburgh 45% interest, Brage South 14%, Overly 25%, Ofelia 10%, Røver Sør 20%, Uer 30%).