DNO today issued an update on production and sales volumes for the third quarter of 2021.

Volumes (boepd)

Cash flows and financial items

In Q3 2021, DNO received USD 120.1 million net from the Kurdistan Regional Government (KRG), of which USD 88.2 million represents the entitlement share of May and June 2021 Tawke license crude oil deliveries. Of the balance, USD 11.4 million represents override payments equivalent to three percent of gross May and June 2021 Tawke license revenues and USD 20.5 million represents payments towards arrears built up from non-payment of certain invoices in 2019 and 2020.

In Q3 2021, DNO received tax refunds of USD 36.8 million in Norway in relation to tax losses in 2021.

Last quarter, DNO completed the placement of USD 400 million of new five-year senior unsecured bonds with a coupon rate of 7.875 percent, of which USD 300 million was used to buy back and redeem the DNO02 bond. The buyback and redemption were both priced at 103.5 percent of par value, plus accrued and unpaid interest.

Exploration

DNO participated in three exploration or appraisal wells on the Norwegian Continental Shelf. The Bergknapp appraisal program in PL 836S (30 percent working interest) resulted in an upgrade of the recoverable resource estimate, while the Black Vulture appraisal well in PL 159B (20 percent working interest) did not encounter hydrocarbons. The Gomez well in PL006C (65 percent working interest) encountered hydrocarbons, but there is uncertainty whether the reservoir can be commercially produced.

KeyFacts Energy: DNO Iraq country profile