kipp440... late reply to your question about DNO. The big picture for DNO is short term potential. DNO has just started producing from their Nabrajah field in Yemen. Should be a major factor in their near term results this year and next. Projected to reach as much as 50,000bpd by 2007. This would mean a huge increase from current production of 13,312bpd. Reserves jumped from 33.2 to 74.7 mboe in 2005 and could jump further once the full extent of Nabrajah is confirmed by further drilling.
Cash of 54% of total balance sheet assets means they have the funds to continue drilling.
Declining production previously means that not all of Nabrajah's production will be a straight add to current production. Continued decline of existing fields is probable.
The loss in q2 looks like much higher taxes. In the Tasour field in Yemen, the consortium had recovered previous driling costs and so the formula reverted to a higher royalty to Yemen. Further drilling should help for the remainder of 2005. Besides the development of Nabrajah, DNO has recently received approval for their section 72 project with TGA. They should start drilling test wells in late 2006. They also have wells in the North Sea.
The possibility of tripling production in only a year is very exciting. DNO has proven to be a very good foreign drilling company. They are the experts in Yemen in basement oil drilling and the full development of Nabrajah will bolster that claim. I think RRainman has been proven correct in his constant pounding for this stock. Bobwins
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