North Sea investment planned by DNO following profit rise

DNO's increased bid values Faroe at values the company at £641.7million
Faroe news

Norwegian oil and gas operator DNO has pledged a multi-million North Sea investment after a slight Q1 profit rise for the firm.

DNO saw first quarter pre-tax profits of £12 million, a rise from £11.1m for the same period last year.

It also saw revenues of £156m, up from £108.8m in the first quarter of 2018.

In a statement following the firm’s results, DNO confirmed its planned expenditure in the North Sea would be more than £145m over 2019.

The firm said it had launched “an active drilling program of up to 36 wells across the portfolio”, representing the highest number of wells in the company’s history

DNO’s executive chairman Bijan Mossavar-Rahmani said: “With our recent acquisition, DNO has transformed into a more balanced company.

“We continue to generate significant cash from ultra-low cost, short-cycle, highly prolific fields in Kurdistan but now with a strong, second leg in the North Sea.”

DNO recently acquired a 50% controlling stake Faroe Petroleum through a compulsory purchase.

Last month, the firm completed an asset swap with Norwegian firm Equinor for several oil fields in Norway.

Faroe’s equity in the Njord, Hyme and Bauge developments were exchanged for Equinor’s interests in the producing Alve, Marulk, Ringhorne East and Vilje fields, in a cashless deal.

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