RAK Petroleum Public Company Limited, the oil and gas exploration and production company, today announced a net profit of AED 48.4 million (unaudited) for the quarter ended 30 June 2011 on turnover of AED 118.9 million, after equity accounting for its share of the profit reported by associate company DNO International ASA in which RAK Petroleum owns a 30 percent stake. On a stand-alone basis, RAK Petroleum recorded an operating profit of AED 4.6 million.
“I am delighted to see our associate company DNO International begin to make a contribution to the RAK Petroleum bottom line,” said Bijan Mossavar-Rahmani, Chairman of the Board of Directors and Chief Executive Officer of RAK Petroleum.
Mr. Mossavar-Rahmani was elected Chairman of DNO International on 9 June 2011 at that company’s annual general meeting and the two companies announced plans on 4 July 2011 to merge RAK Petroleum’s oil and gas operating subsidiaries into DNO International if final agreement can be reached on valuation and other terms and conditions.
“Both companies have been working with their advisors to complete the necessary due diligence and other preparation for the merger and, subject to shareholder approvals, I believe a yearend closing is still on target,” Mr. Mossavar-Rahmani said. Following the merger, the enlarged enterprise is expected to be dual listed in London in addition to the current Oslo listing of DNO International.
RAK Petroleum-operated fields offshore the Sultanate of Oman produced a daily average of 8,664 barrels of oil and condensate in addition to 31 million cubic feet of gas and 506 barrels of LPG during the quarter. In other operations, RAK Petroleum commenced deepening of the Saleh-5 well offshore Ras Al Khaimah as a first step toward that field’s redevelopment and spud an exploration well on Block 31, onshore Oman, earlier this month, noted Mr. Mossavar-Rahmani.
He added that the previously reported re-frack of the Zad-2 well onshore Oman was inconclusive and required more study over the next several months, that 2-D seismic acquisition onshore Ras Al Khaimah has been completed and is undergoing processing and that 3-D seismic is underway in the Hammamet Block offshore Tunisia.
The Company’s current drilling campaign, which extends through the summer of 2012, also includes three wells to be drilled offshore Oman in the Bukha and West Bukha fields.
DNO International is a publicly traded Norwegian oil and gas company with exploration and production assets predominantly in the Middle East (Kurdistan Region of Iraq and Yemen). The company posted an unaudited net profit of AED 146.7 million for the second quarter following revenue recognition of a payment of AED 381.1 million in connection with recovery of prior expenditures in Kurdistan. DNO International’s previously announced second quarter financial results are as follows: sales AED 496.9 million; gross profit AED 292.8 million; operating profit AED 241.1 million; and net profit AED 146.7 million.