DNO sees ‘ex­cep­tional re­sults’ at Kur­dis­tan oil­field

The Kurdish Globe - - NEWS -

A pioneer of oil ex­plo­ration in Iraqi Kur­dis­tan has re­ported “ex­cep­tional re­sults” from its first hor­i­zon­tal well in one of the re­gion’s main oil­fields, with the well pro­duc­ing more than twice the max­i­mum from ex­ist­ing drillings.

The new hor­i­zon­tal well in the Tawke field is pro­duc­ing 25,000 bar­rels per day, Nor­way-based oil and gas com­pany DNO In­ter­na­tional an­nounced on Mon­day. Its pre­vi­ously most pro­duc­tive well pro­duces 10,000 bpd.

“We are pleased with the ex­cep­tional re­sults from this well and ex­cited about the prospects for hor­i­zon­tal drilling at Tawke,” said Bi­jan Mos­savar-Rah­mani, DNO’s ex­ec­u­tive chair­man, in a state­ment.

“Our next task is to op­ti­mise pro­duc­tion . . . while as­sess­ing the po­ten­tial of hor­i­zon­tal wells in terms of drilling ef­fi­ciency, well re­cov­ery fac­tor and over­all Tawke field out­put ca­pac- ity.” DNO holds a 55 per cent in­ter­est in the Tawke li­cence. Genel En­ergy holds 25 per cent and the Kur­dis­tan Re­gional Gov­ern­ment (KRG) the re­main­ing 20 per cent.

Genel is led by for­mer BP chief ex­ec­u­tive Tony Hay­ward. In 2011 he joined with fi­nancier Nat Roth­schild to launch a cash shell, Val­lares, which raised £1.35bn in a Lon­don flota­tion in June 2011 be­fore ne­go­ti­at­ing a merger with Turkey’s Genel.

To­gether with Genel, DNO was among the first to ar­rive in Kur­dis­tan af­ter the US-led in­va­sion of 2003, sign­ing its pro­duc­tion-shar­ing agree­ment with the KRG in June 2004. The com­pany found oil shortly af­ter­wards.

Since then, DNO has spent more than $800m de­vel­op­ing the Tawke field and ex­plor­ing for oil nearby, mak­ing it one of the big­gest in­vestors in the re­gion.

The semi-au­ton­o­mous Kur­dish re­gion of Iraq sits on more than 45bn bar­rels of oil, mak­ing it one of the hottest desti­na­tions for oil com­pa­nies in re­cent years.

ExxonMo­bil de­cided to en­ter the re­gion in 2011, fol­lowed by Chevron, To­tal and Gazprom.

But en­thu­si­asm has been tem­pered by ten­sions be­tween the re­gion and Iraq’s fed­eral gov­ern­ment based in Bagh­dad, which has led to bor­der skir­mishes and rows over oil.

DNO’s shares climbed to a six-year high on Mon­day, up more than 4 per cent dur­ing heavy trad­ing on the Oslo stock ex­change. The com­pany’s shares have gained more than 60 per cent dur­ing the past 12 months.

DNO said drilling was under way at a sec­ond hor­i­zon­tal well in Tawke, and the com­pany was pre­par­ing to start drilling a third.

An em­ployee of the DNO Com­pany is work­ing at the Tawke Oil­field in Kur­dis­tan Re­gion.

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