UAE-based RAK Petroleum Public Company, which operates key oil blocks in the Gulf region, has posted a net operating profit of Dh19 million ($5.17 million) for the first quarter on turnover of Dh63 million.

Announcing the results for the quarter ended March 31, the Ras Al Khaimah-based oil and gas exploration company, said after equity accounting for its share of  loss reported by associate company DNO International, in which RAK Petroleum owns 30 per cent, its net earnings for the quarter was Dh5.9 million.

“During the first quarter, RAK Petroleum posted continued positive operating results and steady production averaging 9,000 barrels of oil and condensate and 33 million cubic feet of gas per day,' said Bijan Mossavar-Rahmani, chairman of the board of directors and CEO of RAK Petroleum.

He said the company was now preparing to drill four new wells, deepen an existing well and fracture and test still another well.

Mossavar-Rahmani said the drilling program will begin in June and continue through the summer of 2012.

'This includes three development wells on Block 8 offshore Oman (50 per cent operated interest with balance held by Korea’s LG International), an exploration well on Block 31 onshore Oman (100 per cent) and deepening of an existing well on Saleh field, offshore Ras Al Khaimah (100 percent) as a first step towards full field redevelopment,' he added.

Also in June, RAK Petroleum plans to re-enter and re-frack the Zad-2 well on Block 47 onshore Oman (50 per cent operated interest with balance held by Spain’s Repsol Exploracion), revealed Mossavar-Rahmani..

The well was drilled and completed earlier this year with good gas shows in the Amin sandstones though insignificant flow was obtained at the surface.

On April 28, the company concluded an exchange agreement with RAK Gas for the remaining 60 per cent of RAK B field offshore Ras Al Khaimah in exchange for a legacy stake in RAK Airways shares held since the airline’s inception.

“In addition to our own core operations, our strategic investment in DNO International will   provide significant value for our shareholders over time,” said Mossavar-Rahmani, who joined DNO International’s Board of Directors in March.

DNO International is a publicly traded Norwegian oil and gas company with assets predominantly in the Middle East (Kurdistan Region of Iraq and Yemen) and posted an unaudited net loss of Dh43.7 million for the quarter.-TradeArabia News Service