Trade Arabia reported that Rak Petroleum, a leading oil and gas exploration and production company, has posted a net profit of AED 91.8 million for the Q3 on a turnover of AED 107.2 million.

A senior official said that 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 30% stake. On a stand alone basis, RAK Petroleum recorded an operating profit of AED 33.1 million.

Mr Bijan Mossavar Rahmani CEO and chairman of the board said that “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.”

He said that 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 favor 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, Mr Mossavar Rahmani said that 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% 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% 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 meters with positive gas indications during drilling.

(Sourced from Trade Arabia)