DNOs production in the first quarter of 2011 was 39,945 bopd, up from 12,442 in the same quarter last year. Commencement of crude oil export from Kurdistan in February 2011 was a milestone for DNO.

"DNO is producing high volumes of crude oil in Kurdistan. A first cash advance to DNO of USD 110 million has now been confirmed by the Kurdistan Regional Government and forms a basis for increased activities by DNO in Kurdistan going forward", says Managing Director Helge Eide.

Sales increased to NOK 281.2 million in the first quarter this year (export revenues from Tawke not included), up from NOK 258.6 million in the same quarter 2010. EBITDA was NOK 146.3 million in this quarter, down from NOK 155.6 million in the first quarter 2010. The somewhat lower EBITDA is mainly explained by lower achieved oil price and higher expensed exploration costs.

Revenue from export sales has not been included in the financials for Q1 2011. However, DNO has now received confirmation from the Kurdistan Regional Government (KRG) that cash advances will be made by the KRG to companies exporting oil from the Kurdistan Region in Iraq. An amount of USD 110 million will be released to DNO by the KRG as payment against some of the amounts due in respect of the Tawke PSC.

Tags: DNO International