Aug. 16 (UPI) -- Pointing to a high level of success for its assets in the Kurdish north of Iraq, Norwegian company DNO said it was paying its first dividend in 13 years.
The company reported Thursday that second-half revenue of $289 million represented an 83 percent increase from the same period last year. Singling out its assets in the Kurdish region of Iraq, the company said the fast-track development of its Peshkabir field alone will accelerate average production by more than 40 percent by the end of the year.
"With growing production and robust and reliable revenues, the dividend announcement underscores confidence in our strong growth prospects," DNO Executive Chairman Bijan Mossavar-Rahmani said in a statement. "Kurdistan is back and so is DNO."
DNO in April took over as the operator at the Baeshiqa license in the Kurdish north, working alongside Exxon Mobil, the Turkish Energy Co. and the semiautonomous Kurdish government in Iraq. From its Peshkabir and Tawke fields, the company said about 90,000 barrels of oil per day are targeted for exports through Turkey.
The company in July put its fourth well in service at the Peshkabir field in the Kurdish north. Its rate of production is around 8,000 bpd, meaning the entire field is now past DNO's target rate of 30,000 bpd.
Pointing to higher crude oil prices, the company's executive chairman said earlier this year that DNO was working with the wind at its back.
"Peshkabir is proving prolific in production and has generated over $300 million in gross revenue since startup last year, or three times the investment," Mossavar-Rahmani said Thursday.
The company's total operated production last year averaged 113,500 barrels of oil equivalent per day, up just 900 boe per day from 2016. The company in its second half report said production was well over 120,000 bpd, with the bulk of that coming from operations in the Kurdish region.
Consistent payments for exports of Kurdish oil from the semiautonomous regional government totaled $330 million year-to-date, an increase of 60 percent from the same period last year. Its annual dividend of $50 million will be divided out to pay all shareholders over two payments.