Shares in DNO ASA, the Norwegian oil and gas operator, were trading up five percent on Monday afternoon following the company’s announcemnt that it has replaced 2018 production through additions to reserves, marking the second consecutive year in which the Company’s replacement of proven reserves reached or exceeded 100 percent of production.

“DNO’s stellar record of reserves replacement through the drill bit is a result of stepped up spending on our portfolio of quality assets coupled with rapid-fire execution,” said Bijan Mossavar-Rahmani, DNO’s Executive Chairman. “And the barrels we continue to add are among the lowest cost in the industry, anywhere,” he expounded.

Yearend 2018 Company Working Interest (CWI) proven (1P) reserves stood at 240 million barrels of oil (MMbbls), unchanged from yearend 2017 after adjusting for production and technical revisions. On a CWI proven and probable (2P) reserves basis, DNO replaced 98 percent of its 2018 production, exiting the year with CWI 2P reserves of 376 MMbbls (384 MMbbls in 2017).

At 2018 production rates, DNO’s 1P reserves life is 8.2 years and its 2P reserves life is 12.9 years.

Significantly, the Company’s 1P reserves replacement ratio (RRR) has reached or exceeded 100 percent in eight of the past ten years.

On a gross basis, at the Tawke license in the Kurdistan region of Iraq containing the Tawke and Peshkabir fields, yearend 2018 1P reserves stood at 348 MMbbls, unchanged from 2017 after adjusting for production of 41 MMbbls and upward technical revisions of 41 MMbbls. Tawke license 2P reserves stood at 502 MMbbls (513 MMbbls in 2017) and proven, probable and possible (3P) reserves at 697 MMbbls (880 MMbbls in 2017).

Broken down by field, Tawke field gross 1P reserves stood at 294 MMbbls (335 MMbbls in 2017), 2P reserves at 376 MMbbls (438 MMbbls in 2017) and 3P reserves at 477 MMbbls (588 MMbbls in 2017). Peshkabir field gross 1P reserves stood 54 MMbbls (13 MMbbls in 2017), 2P reserves at 126 MMbbls (75 MMbbls in 2017) and 3P reserves at 220 MMbbls (292 MMbbls in 2017).

International petroleum consultants DeGolyer and MacNaughton carried out the annual independent assessment of the Tawke license. The Company internally assessed the remaining licenses in its portfolio.

The 2018 Annual Statement of Reserves and Resources, prepared and published in accordance with Oslo Stock Exchange listing and disclosure requirements (Circular No. 1/2013), is attached and is also available on the Company’s website at www.dno.no.

(Sources: DNO, Yahoo!)

DNO ASA, the Norwegian oil and gas operator, today announced 2018 net profit of USD 354 million on revenues of USD 829 million, the highest annual revenues in the Company’s 47-year history. Cash flow from operations increased 40 percent to USD 472 million in 2018, of which USD 334 million represented free cash flow.

Operated production averaged 117,600 barrels of oil equivalent per day (boepd) including 81,700 boepd on a Company Working Interest (CWI) basis, up from 113,500 boepd and 73,700 boepd, respectively, during 2017. January 2019 operated production averaged 128,000 barrels of oil per day (bopd) or 90,000 bopd on a CWI basis.

The Company stepped up its operational spend in 2018 to nearly USD 300 million to support the fast-track development of the Peshkabir field in the Kurdistan region of Iraq and the ongoing drilling program at the Tawke field within the same license.

Spending levels in 2019 are projected to rise more than 40 percent from 2018 levels to an estimated USD 420 million. DNO’s 2019 drilling program includes up to 20 exploration and production wells in Kurdistan, including up to 14 wells at the Tawke field, four at Peshkabir and two at the Baeshiqa license. Another five wells are planned in Norway on DNO’s licenses.

In Kurdistan, two recently completed wells, Peshkabir-9 and Tawke-52, will be placed on production in February. Testing of the first Baeshiqa exploration well targeting the Cretaceous reservoir has been delayed by extensive rainfall but is also expected to commence this month.

Already the leading international oil company in Kurdistan, with a 75 percent operating interest in fields contributing a third of the region’s total exports, the Company is now firmly establishing itself in Norway as it completes the takeover of Faroe Petroleum plc. With 90 licenses, of which 22 are operated, DNO will leapfrog to the ranks of the top five companies in total licenses held in Norway.

“The Faroe transaction transforms DNO into a more diversified company with a strong, second leg,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani. “This represents not a pivot away from Kurdistan but a pivot to Norway,” he added. “We are now well positioned in two areas in which we have a comparative, even competitive, advantage.”

The combination places DNO among the top three European-listed independent oil and gas companies in production and reserves.

DNO has acquired more than 96 percent of Faroe shares and initiated the compulsory acquisition of the remaining shares. The integration of the Faroe and DNO organizations is well underway; the new combined entity has over 1,100 employees and offices in Oslo, Stavanger, Erbil, Dubai, London, Aberdeen and Great Yarmouth.

The Company will release pro-forma financials and 2019 investment programs and budgets for the combined entity in February and March.

Separately, DNO’s Board of Directors have approved a dividend payment of NOK 0.20 per share to be made on or about 27 March 2019 to all shareholders of record as of 18 March 2019. DNO shares will be traded ex-dividend as of 15 March 2019.

(Source: DNO)

The Government of Norway is supporting the United Nations Development Programme (UNDP) with an additional NOK 25 million (approximately USD 3 million) for stabilization in Iraq, bringing Norway’s total contribution since 2015 to USD 36 million, the seventh largest donor to FFS.

The fund will be directed towards UNDP’s Funding Facility for Stabilization (FFS) which finances fast-track initiatives to stabilize areas liberated after the fall of Islamic State of Iraq and the Levant (ISIL)

Acting UNDP Resident Representative for Iraq, Mr Gerardo Noto, said:

“Although much progress has been made, we still have a long way to go in stabilizing parts of Iraq devastated by ISIL. At this stage, more than 4 million people have returned to their homes. This is good news, but a lot more needs to be done, particularly in areas like western Mosul and the Ninewah Plains. Norway’s contribution will help us to accelerate our work in these areas, and we are very grateful for this support.”

The Norwegian Ambassador to Iraq and Jordan, H.E. Mrs. Tone Allers, added:

“As Iraq is entering a new phase, Norway remains committed to support the efforts to ensure long-term stability and growth for all Iraqi citizens. Since the initiation of UNDP’s Funding Facility for Stabilization, we have seen that the projects are yielding results on the ground, rehabilitating important infrastructure and restoring basic services in Iraqi towns and cities affected by ISIL’s takeover. With this additional contribution to FFS, we hope to contribute to improving conditions for the safe return of the more than 300,000 families still displaced from their homes.”


(Source: UNDP)

Government of Iraq and United Nations Launch National Strategy to Combat Violence Against Women in Iraq

The Government of Iraq and the United Nations in Iraq launched today a national strategy to combat violence against women, a significant step towards achieving women’s rights.

This strategy provides an overall framework on which policy and decision makers will draw to take concrete actions aimed at preventing violence against women and girls and protecting survivors of violence. Endorsement by all stakeholders of this updated national strategy formalises the commitment of the Government of Iraq and the United Nations to take concrete action.

The launch event in Baghdad was attended by the First Lady of Iraq, Ms. Surbagh Salih, the Secretary-General of the Council of Ministers, Dr. Mahdi al-Allaq, the Director-General of the Women Empowerment Department, Dr. Ibtisam Aziz, ministers and members of parliament, members of the High Judicial Council, civil society and international NGOs, diplomats as well as representatives of the United Nations Assistance Mission for Iraq (UNAMI) and the United Nations Population Fund (UNFPA).

The launch was supported by the embassies of the Kingdoms of Norway and Sweden.

“It is a propitious day to be thinking and talking about the rights of women to live lives free of violence,” the Deputy Special Representative for Iraq of the United Nations Secretary-General, Ms. Alice Walpole, said in remarks delivered at the event. “The national strategy to combat violence against women will be a significant tool for the Iraqi government to fulfil its international gender commitments, including the Sustainable Development Goals, the Convention on the Elimination of All Forms of Violence against Women, United Nations Security Council Resolution 1325 on Women, Peace and Security, and the Beijing Platform.”

UNFPA Representative to Iraq, Dr. Oluremi Sogunro, stated: “This strategy is yet another win for women and girls in Iraq as it adds to the progresses observed in the past few years. UNFPA is proud to have worked with the Government of Iraq to develop this strategy through the provision of the technical capacities and expertise.”

Despite achievements in the field of women’s protection and empowerment, significant challenges remain, such as the lack of parliamentary endorsement of a Law to Protect Families from Domestic Violence. The delay in the approval of this law hinders the journey towards gender equality and women’s empowerment as well as overall national sustainable development and peace-building.

The United Nations reiterates its commitment to support and engage with the new Iraqi government, including the senior political leadership and the Council of Representatives, to advocate for the prioritisation of relevant legislation in the new parliament.

(Source: UN)

By John Lee.

Iraq has fallen one place in this year’s Legatum Institute Prosperity Index, ranking in 143rd place out of the 149 countries measured.

The index ranks countries according to its nine pillars of prosperity: Economic Quality, Business Environment, Governance, Personal Freedom, Social Capital, Safety and Security, Education, Health and Natural Environment.

Despite Iraq’s dismal performance, the report found some areas of improvement:

“Iraq … now ranks 80th for its level of democracy, up from 145th in 2008. It has improved from 147th to 138th in the overall Governance rankings in the same time period.”

The top three positions were unchanged from last year, with Norway scoring highest, followed by New Zealand and Finland.

The least prosperous country is Afghanistan, followed by the Central African Republic and Yemen.

(Source: Legatum Institute)

DNO ASA, the Norwegian oil and gas operator, today announced a rise in third quarter 2018 net profit to USD 63 million from operating revenue of USD 171 million on the back of solid production, regular export payments and higher oil prices.

Operated production averaged 117,600 barrels of oil equivalent per day (boepd) during the quarter including 81,500 boepd on a company working interest basis. DNO received three monthly export payments totaling USD 164 million net to its 75 percent operated interest in the Tawke license in the Kurdistan region of Iraq. Realized export prices averaged USD 61 per barrel during the quarter.

Net profit for the three months ending September was ahead of the USD 93 million net loss in the same period last year, excluding the one-time recognition of its Kurdistan Settlement Agreement in August 2017, and above the USD 43 million in the second quarter this year. Operating revenue was up from USD 73 million in the third quarter a year earlier and USD 147 million in the preceding quarter in 2018.

Notwithstanding third quarter spend of USD 71 million, DNO maintained its strong financial position with free cash balances of USD 640 million. In addition, the Company held USD 335 million in marketable securities as at 30 September, including a 28.22 percent stake in London-listed Faroe Petroleum plc, a 5.64 percent stake in Oslo-listed Panoro Energy ASA, a 4.83 percent stake in Olso-listed RAK Petroleum plc and a 3.23 percent stake in DNO held through treasury shares.

Going into the fourth quarter, on the Tawke license in Kurdistan containing the Tawke and Peshkabir fields the Company has ramped up production from the Peshkabir field to over 50,000 barrels of oil per day (bopd) from six wells less than 18 months after commencement of operations, beating its end-2018 target ahead of schedule and below budget. Six wells are currently producing from Peshkabir, and the seventh, Peshkabir-8, will shortly commence test production. Peshkabir-9 will spud in mid-November.

“Peshkabir is on steroids,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani. “Production continues to climb and we are proud of our operating teams who set stretch targets and then proceed to beat them,” he added. “With the fast-track, low-cost development of Peshkabir, DNO continues to tease out Kurdistan’s promise as a world class oil province,” Mr. Mossavar-Rahmani said.

The Company has four active rigs in Kurdistan, of which one is at the Peshkabir field, two at the Tawke field and one at the Baeshiqa license. In mid-October, the Company spud the Baeshiqa-1 exploration well to test the Cretaceous at the Baeshiqa structure. A back-to-back well to test the deeper Jurassic and Triassic on the same structure will follow in December. A third well is planned to test the Jurassic and Triassic on a separate structure during 2019.

At the Tawke field, two shallow Jeribe wells, Tawke-50 and Tawke-51, were brought onstream during October. The Tawke-49 well, drilled to the deeper Cretaceous, will follow later this month. The well has been drilled utilizing underbalanced technology, the first on the license, and is producing from the target zone while drilling. The Tawke-52 Cretaceous well will spud by the end of November. Tawke is currently producing at an average rate of 80,000 bopd.

Elsewhere, the Rungne prospect offshore Norway was spud last month by operator Faroe Petroleum; DNO separately holds a 10 percent interest in the license. The Company will participate in at least five additional wells offshore Norway next year.

The Company currently holds 21 Norway licenses, including the 20 percent interest in a Barents Sea license recently acquired from Chevron containing the Korpfjell prospect.

The Company has received ten monthly Kurdistan export payments year-to-date totaling USD 500 million net to DNO, of which USD 59 million was received in October. This compares to USD 380 million received net to DNO during the full-year 2017.

DNO expects to exit the year with operated Kurdistan production of at least 130,000 bopd, representing more than one-half of total production by international operators and around one-third of all Kurdistan exports.

(Source: DNO)

DNO ASA, the Norwegian oil and gas operator, today announced a rise in third quarter 2018 net profit to USD 63 million from operating revenue of USD 171 million on the back of solid production, regular export payments and higher oil prices.

Operated production averaged 117,600 barrels of oil equivalent per day (boepd) during the quarter including 81,500 boepd on a company working interest basis. DNO received three monthly export payments totaling USD 164 million net to its 75 percent operated interest in the Tawke license in the Kurdistan region of Iraq. Realized export prices averaged USD 61 per barrel during the quarter.

Net profit for the three months ending September was ahead of the USD 93 million net loss in the same period last year, excluding the one-time recognition of its Kurdistan Settlement Agreement in August 2017, and above the USD 43 million in the second quarter this year. Operating revenue was up from USD 73 million in the third quarter a year earlier and USD 147 million in the preceding quarter in 2018.

Notwithstanding third quarter spend of USD 71 million, DNO maintained its strong financial position with free cash balances of USD 640 million. In addition, the Company held USD 335 million in marketable securities as at 30 September, including a 28.22 percent stake in London-listed Faroe Petroleum plc, a 5.64 percent stake in Oslo-listed Panoro Energy ASA, a 4.83 percent stake in Olso-listed RAK Petroleum plc and a 3.23 percent stake in DNO held through treasury shares.

Going into the fourth quarter, on the Tawke license in Kurdistan containing the Tawke and Peshkabir fields the Company has ramped up production from the Peshkabir field to over 50,000 barrels of oil per day (bopd) from six wells less than 18 months after commencement of operations, beating its end-2018 target ahead of schedule and below budget. Six wells are currently producing from Peshkabir, and the seventh, Peshkabir-8, will shortly commence test production. Peshkabir-9 will spud in mid-November.

“Peshkabir is on steroids,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani. “Production continues to climb and we are proud of our operating teams who set stretch targets and then proceed to beat them,” he added. “With the fast-track, low-cost development of Peshkabir, DNO continues to tease out Kurdistan’s promise as a world class oil province,” Mr. Mossavar-Rahmani said.

The Company has four active rigs in Kurdistan, of which one is at the Peshkabir field, two at the Tawke field and one at the Baeshiqa license. In mid-October, the Company spud the Baeshiqa-1 exploration well to test the Cretaceous at the Baeshiqa structure. A back-to-back well to test the deeper Jurassic and Triassic on the same structure will follow in December. A third well is planned to test the Jurassic and Triassic on a separate structure during 2019.

At the Tawke field, two shallow Jeribe wells, Tawke-50 and Tawke-51, were brought onstream during October. The Tawke-49 well, drilled to the deeper Cretaceous, will follow later this month. The well has been drilled utilizing underbalanced technology, the first on the license, and is producing from the target zone while drilling. The Tawke-52 Cretaceous well will spud by the end of November. Tawke is currently producing at an average rate of 80,000 bopd.

Elsewhere, the Rungne prospect offshore Norway was spud last month by operator Faroe Petroleum; DNO separately holds a 10 percent interest in the license. The Company will participate in at least five additional wells offshore Norway next year.

The Company currently holds 21 Norway licenses, including the 20 percent interest in a Barents Sea license recently acquired from Chevron containing the Korpfjell prospect.

The Company has received ten monthly Kurdistan export payments year-to-date totaling USD 500 million net to DNO, of which USD 59 million was received in October. This compares to USD 380 million received net to DNO during the full-year 2017.

DNO expects to exit the year with operated Kurdistan production of at least 130,000 bopd, representing more than one-half of total production by international operators and around one-third of all Kurdistan exports.

(Source: DNO)

DNO ASA, the Norwegian oil and gas operator, today announced production at the Peshkabir field in the Kurdistan region of Iraq has ramped up to 50,000 barrels of oil per day (bopd), meeting the end-2018 target ahead of schedule and below budget.

One of two recently completed wells, Peshkabir-7, is producing over 10,000 bopd from nine Cretaceous zones through temporary test facilities and exported. The other, Peshkabir-6, drilled as a production well, but with the additional objective of appraising deeper formations, has established a deeper Cretaceous oil/water contact level than previously estimated. Further testing is underway, including test production of multiple producing zones.

The Peshkabir-8 well, spud in late August, is drilling ahead at 2,325 meters. Once completed, the rig will move to spud Peshkabir-9 in November.

Four other wells at Peshkabir now produce at a combined rate of close to 40,000 bopd following a workover at Peshkabir-3 which boosted production from that well to 11,000 bopd from 8,000 bopd.

Peshkabir production is processed through temporary test facilities until commissioning of a central processing facility with a capacity of up to 50,000 bopd by end-2018. The Company is also installing a 10-inch pipeline from Peshkabir to Fish Khabur with a capacity of 60,000 bopd. Field production is currently transported to Fish Khabur by tanker truck and a 6-inch pipeline.

At the Company’s flagship Tawke field, the Tawke-50 shallow Jeribe well drilled to a depth of 320 meters will be brought on production within several days. The Tawke-49 Cretaceous well is drilling ahead at 2,245 meters and will be completed later this month. Two additional Tawke wells, one each in the Jeribe and the Cretaceous, will be drilled by the end of the year. Workovers are also underway at two wells. Tawke production currently stands at just over 80,000 bopd.

Elsewhere in Kurdistan, the Company is about to spud its first well at the Baeshiqa license. Baeshiqa contains two undrilled structures with multiple target reservoirs in the Cretaceous, Jurassic and Triassic. The first well will target the Cretaceous and will be followed by a back-to-back well to test the deeper Jurassic and Triassic on the same structure. A third well to test the Jurassic and Triassic on a separate structure will be drilled in 2019.

“We are all in on our Kurdistan operations and delivering,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani (pictured). “Peshkabir continues to exceed expectations and we are eager to probe the promising potential at Baeshiqa,” he added.

In Norway, the Company will participate in two exploration wells to be spud in 2018. DNO currently holds 21 licenses in the country and plans an additional five exploration wells next year. The Company’s growing Norway portfolio is complemented by a 28.22 percent shareholding in UK-listed Faroe Petroleum plc.

“With USD 1 billion in financial assets, including more than USD 600 million in cash and the balance in marketable securities and treasury shares, we are well-positioned to grow our footprint in Kurdistan and Norway with the drill bit and the acquisition of producing assets,” said Mr. Mossavar-Rahmani.

(Source: DNO)

By John Lee.

DNO ASA, the Norwegian oil and gas operator, has reported receipt of USD 69.03 million as payment for May 2018 crude oil deliveries to the export market from the Tawke license in the Kurdistan region of Iraq.

The funds will be shared by DNO and partner Genel Energy plc pro-rata to the companies’ interests in the license.

Separately, a payment of USD 5.99 million has been received net to DNO, representing three percent of gross Tawke license revenues during May, as provided for under the August 2017 receivables settlement agreement with the Kurdistan Regional Government.

DNO operates and has a 75 percent interest in the Tawke license, which contains the Tawke and Peshkabir fields.

Following regularization of export payments for Tawke license production since February 2016, the Company will no longer make monthly receipts announcements. The Company will instead update the market on export volumes and values as part of its quarterly financial reporting.

(Source: DNO)

By John Lee.

DNO ASA, the Norwegian oil and gas operator, has reported receipt of USD 69.03 million as payment for May 2018 crude oil deliveries to the export market from the Tawke license in the Kurdistan region of Iraq.

The funds will be shared by DNO and partner Genel Energy plc pro-rata to the companies’ interests in the license.

Separately, a payment of USD 5.99 million has been received net to DNO, representing three percent of gross Tawke license revenues during May, as provided for under the August 2017 receivables settlement agreement with the Kurdistan Regional Government.

DNO operates and has a 75 percent interest in the Tawke license, which contains the Tawke and Peshkabir fields.

Following regularization of export payments for Tawke license production since February 2016, the Company will no longer make monthly receipts announcements. The Company will instead update the market on export volumes and values as part of its quarterly financial reporting.

(Source: DNO)