Disruptive Investor
Long/short equity, deep value, event-driven, macro

DNO International: A Grossly Undervalued Kurdish Oil Play

DNO International (OTCPK:DTNOF) is an independent exploration and production company from Norway with a major presence in the Middle East and North Africa region.

DNO's stock price has increased by 46% in the last one year. However, the stock is still grossly undervalued and certain de-risking triggers can result in another 100% upside from current levels. This investment note discusses the current valuation, earnings quality, growth prospects and the de-risking potential over the next one year.

DNO Is Grossly Undervalued

DNO's 2P reserves have grown from 151 mmboe in 2005 to 520 mmboe in 2012. During the same period, the company's EV per 2P reserves ($) has declined from $26 to $3.2. This metric gives the level of...

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