Presentation

DNO is a Norwegian E&P company which historically has been focused on the Middle East, with significant success in the Kurdish region of Iraq (KRI). The company re-entered the North Sea through the acquisitions of Origo in 2017 and Faroe Petroleum in 2019 which added ~20% to reserves and production. DNO is listed on the Oslo Stock Exchange with a market cap of USD 1bn and net debt of USD ~470m as of Q4’20. RAK Petroleum is the largest shareholder in the company, holding a 45% stake.

The company’s main asset is the Tawke license (75% WI) which commenced production in 2007 with net remaining 2P reserves of 268 mill bbl as of year-end 2020. With continued investments in production wells, production from the Tawke block is expected to remain above 100,000 bbl in 2021e.

For 2021, the company expects to drill 27 wells up from 17 in 2020, including the high impact exploration wells Edinburgh and Gomez in the North Sea. The temporary tax incentives in Norway are posed to drive a step up in investments, with concept selection on the Brasse field, infill drilling at Ula, Tambar and Brage, and evaluating another five discoveries for sanctioning in 2022.