DONG unit attributes sevenfold 2000 profit to high prices

After having expensed a joint taxation contribution to parent company Dansk Olie og Naturgas AS, DONG Efterforskning and Produktion AS (DONG) showed a profit of 603 million Danish kroner ($72.4 million) in 2000 compared to a profit of 84 million Danish kroner in 1999.


By the OGJ Online Staff


HOUSTON, Mar. 29�After having expensed a joint taxation contribution to parent company Dansk Olie og Naturgas AS, DONG Efterforskning and Produktion AS (DONG) showed a profit of 603 million Danish kroner ($72.4 million) in 2000 compared to a profit of 84 million Danish kroner in 1999.

A statement said the increase in profit comes from high oil prices in 2000 and from South Arne and Siri fields, which came on stream in 1999 and maintained production through 2000. Three wells were drilled in South Arne in 2000, and DONG expects to drill more wells in the field soon.

Last year, DONG participated in seven Danish exploration wells�four operated by other companies. Oil was proved in License 4/95 (Nini) and 16/98 (Cecilie). The company expects to operate these fields, if they are developed.

DONG said that as part of the Faroes Partnership, which is operated by Amerada Hess Corp., it expects a well to be drilled in the license off the Faroe Islands this year.

Together with some of the other partners in the Faroese license, DONG has also applied for an exploration license located on the UK side of the Faroese-UK border.

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