RAK Petroleum announces first quarter profits on back of DNO International results

RAK Petroleum

RAK Petroleum Public Company Limited, the energy investment company, today announced net profits of AED 81.3 million (unaudited) for the quarter ended 31 March 2012, continuing the Company’s profitability into the fourth consecutive year. The announcement follows the release by DNO International ASA of its quarterly financial and operating results.

“Integration of RAK Petroleum’s former operating subsidiaries into DNO International is now complete following legal closure of the merger in January 2012 and an organised handover and restructuring of key management positions,” said Bijan Mossavar-Rahmani, Chairman of the Board of Directors and Chief Executive Officer of RAK Petroleum.  “We are pleased with our investment  in  DNO International, our single largest asset, and will continue to do what we can to support  their management team, including many former RAK Petroleum staff, to build on the solid performance so far this year,”  Mr. Mossavar-Rahmani added.   Mr. Mossavar-Rahmani is Executive Chairman of DNO International.  Shelley Watson, RAK Petroleum’s General Manager, is a member of DNO International’s board of directors.

RAK Petroleum holds a 42.8 percent ownership stake in DNO International, a publicly traded Norwegian oil and gas company with assets in the Middle East and North Africa region Kurdistan Region of Iraq, Yemen, Oman, UAE and Tunisia. Under equity accounting rules for associated companies shareholding of 20 percent or more RAK Petroleum assumes a proportionate share of DNO International’s profit and loss in its own financial results.

DNO International recently announced an increase in its remaining proved plus probable 2P/P50 company working interest reserves to 502 million barrels of oil and 165 billion cubic feet of gas at 31 March 2012, up from 372 million barrels of oil at yearend 2011. The increase is largely from the Tawke field in Kurdistan where positive results from development drilling and production performance has led to a more than doubling of reserves since end 2010. Increased reserves also resulted from the addition of the former RAK Petroleum assets following closure of the merger.