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DNO to raise oil production after discovery of Tawke field in Kurdistan region
13 Jun 2013
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DNO International ASA (DNO), the oil producer focused on the Kurdistan region of northern Iraq, stated that it will increase its production after the discovery a new oilfield in the region, namely Tawke field. Also tests are going on finding wells in the region for oil production increment.
The latest find, at the deep Tawke-17 well, tested at 1,500 barrels a day, the company said in a statement today. Chairman Bijan Mossavar-Rahmani said, “The find, more than 200 meters below the main field reservoir, likely bumps recoverable reserves on the Tawke license to the one billion barrel mark.”
The shares rose as much as 9.1 percent to 11.20 kroner, the highest intraday price since Oct. 2. DNO stock has gained 46 percent in the past year.
DNO, based in Oslo, also said the Tawke-20 well, its first horizontal well at the field, flowed at an average of 8,000 barrels a day from each of the first four of 10 fractured corridors penetrated by the well. If a second well, Tawke-23, backs up the results of Tawke-20, DNO will “consider further enhancements to our current target of 200,000 barrels a day of production capacity by 2015,” the company said.
It has to be noted that the DNO is the first company to drill for oil in Iraq after the U.S.-led invasion in 2003. The company has been caught into the conflict between the autonomous region Kurdistan and Baghdad. The conflict is not new and it was started regarding oil revenue and exploration policy. Kurdistan region government is always keen to explore oil at a robust speed, whereas Baghdad showed some lethargy at the initial stages. Even the conflict between the two almost led the country to get broken into two pieces.
DNO International is the operator of Tawke with a 55 percent stake. Genel Energy Plc (GENL) has 25 percent, and the Kurdistan Regional Government the remaining 20 percent.
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