DNO 2019 Spending to Rise Sharply

By Nerijus Adomaitis
Thursday, February 7, 2019

Norwegian oil firm DNO reported on Thursday a higher-than-expected operating profit in the fourth quarter and said it would hike 2019 spending as it planned to drill a record number of wells.

The Oslo-listed firm, which produces most of its oil in the Kurdistan region of Iraq, in January won a hostile takeover bid for London-based Faroe Petroleum, expanding its foothold in the North Sea.

"The Faroe transaction transforms DNO into a more diversified company with a strong, second leg," DNO's Executive Chairman Bijan Mossavar-Rahmani said in a statement.

"This represents not a pivot away from Kurdistan but a pivot to Norway."

The Faroe acquisition places DNO among the top five oil companies by production licenses held on the Norwegian continental shelf, which includes 22 operated licenses, DNO said.

The company said it would lift capital spending to $220 million in 2019, up from $138 million last year, and plans to raise total spending, including exploration spending, to $420 million, up 40 percent from the last year.

DNO's drilling program includes up to 20 exploration and production wells in Kurdistan, and another five wells in Norway. Including Faroe licenses, DNO plans to participate in up to ten wells in Norway this year, it added.

The company said it would publish pro-forma results and its 2019 investment program for the combined entity later this month and in March.

It would continued to pursue other bolt-on acquisitions in Norway to complement its exploration and development programs, it added.

Earnings before interest and taxes rose to $230 million in the fourth quarter from $25.7 million a year ago, beating a forecast of $68.5 million in a Reuters poll of analysts.

DNO's working interest quarterly production stood at 91,570 barrels of oil equivalent per day (boepd), up from 77,232 boepd in the same quarter a year ago.


($1 = 0.7711 pounds)

(Editing by Gwladys Fouche)

Categories: Finance Drilling Industry News Europe

Related Stories

KBR-SOCAR Joint Venture Secures Work for BP in Azerbaijan

Valeura Makes Progress with Multi-Well Drilling Campaign in Gulf of Thailand

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

UK Firm Secures Exploration Extension for Two Blocks off Vietnam

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Hanwha Ocean Marks Entry into Deepwater Drilling Market with First Drillship

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Current News

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

China Rolls Out 17MW Floating Wind Turbine Prototype

SBM Offshore’s Jaguar FPSO Enters Drydock in Singapore (Video)

EnQuest Picks Up Offshore Oil and Gas Block in Brunei

CNOOC Finds Oil and Gas in South China Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

KBR-SOCAR Joint Venture Secures Work for BP in Azerbaijan

Baker Hughes, Petronas Team Up for Asia-Pacific Energy Resilience

EnQuest Acquires Harbour Energy’s Vietnamese Assets

Woodside Finds South Korean Partners to Advance LNG Value Chain

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com