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Rak Petroleum posts $24m Q3 profit

Ras Al Khaimah, November 14, 2011

Rak Petroleum, a leading oil and gas exploration and production company, has posted a net profit of Dh91.8 million ($24.9 million) for the third quarter on a turnover of Dh107.2 million.

This profit figure for the quarter ended September 30 comes after equity accounting for its share of the profit reported by associate firm DNO International in which RAK Petroleum owns a 30 per cent stake.

On a stand-alone basis, RAK Petroleum recorded an operating profit of Dh33.1 million, said a senior official.

“RAK Petroleum shareholders can be pleased that DNO is contributing its second profitable quarter to our results and that its more positive share price reflects, in part, the market’s favorable outlook for the merger,” remarked Bijan Mossavar-Rahmani, CEO and chairman of the board.

He said the merger was on track to close in early 2012 with integration planning underway, following specially convened meetings in November at which both groups of shareholders voted in favour of the transaction.

Following the merger, the enlarged enterprise, which will include RAK Petroleum’s Mena operating assets, is expected to be dual listed in London in addition to the current Oslo listing of DNO International.

RAK Petroleum's offshore fields in Oman produced a daily average of 8,144 barrels of oil and condensate in addition to 35.4 million cubic feet of gas and 620 barrels of LPG during the quarter.

On the operations, Mossavar-Rahmani said RAK Petroleum had commenced deepening of the Saleh-5 well offshore in Ras Al Khaimah as a first step towards that field’s redevelopment.

However, the work was temporarily suspended following drilling difficulties and to meet scheduled commitments at the West Bukha and Bukha fields of Block 8, Oman, operated by the company and in which LG International is a 50 per cent partner.

The rig is being redeployed to Oman this week and is expected to return to Saleh at the end of 2012 following a three-well drilling program.

He said that RAK Gas had exercised its back-in rights for 30 per cent of the Saleh project by agreeing to pay its prorata share of past and future costs.

At Block 31 onshore Oman, the Wadi Jiffra well was spudded in August and reached total depth of 3,250 metres with positive gas indications during drilling.

The well has been temporarily suspended pending permitting for use of oil-based mud and to evaluate a sidetrack to access updip potential, said the Rak Petroleum in a statement.

DNO International recorded a working interest production (including exports from the Tawke field in the Kurdistan Region of Iraq) of 36,773 bpd in the third quarter versus 24,956 bpd last year it added.-TradeArabia News Service




Tags: Ras Al Khaimah | DNO | oil and gas | RAK Petroleum | merger | exploration |

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