DNO Releases 2014 Annual Report and Accounts and Annual Statement of Reserves

The company reported record levels of production in 2014, driven by strong performance in the Kurdistan region of Iraq. Gross production across the portfolio averaged 117,482 barrels of oil equivalent per day (boepd) and company working interest (CWI) production averaged 68,958 boepd.

Gross production from DNO`s flagship Tawke field in Kurdistan jumped 131 percent to 91,255 barrels of oil per day (bopd) in 2014, up from 39,433 bopd the prior year. In addition to the rise in output, the company also made significant progress towards its plans to double Tawke capacity to 200,000 bopd by the first part of 2015.

DNO delivered operating revenue of USD 452 million in 2014 but a net loss of USD 226 million due to impairments. Excluding impairments, operating profit stood at USD 53 million. These audited financial results are unchanged from the previously reported preliminary figures.

Proved and probable (2P) reserves at the end of 2014 totaled 483.6 million barrels of oil equivalent (MMboe) on a CWI basis. The comparable figure at the end of 2013 was 541.9 MMboe. The decrease reflected the shift away from appraisal drilling to expansion of production capacity at Tawke and a record 33 million barrels produced from the field during the year. Lower oil prices and operational results led to downward revisions at other fields.

Estimates of oil-in-place at the Benenan field in the Erbil license climbed to more than two billion barrels, although in the absence of a comprehensive field development plan, 2P reserves remain unchanged at 27 million barrels on a CWI basis.