DNO eyes accelerated Kurdistan Region work

Norway’s DNO presented operational updates and financial highlights on Thursday, signalling an intention to fast-track the development of its second field in the Kurdistan Region of Iraq.

The operator of the Tawke field said it was targeting a June spudding date for a new appraisal/production field in the Peshkabir field, as well as “finalising fast-track development plan involving early production facility.”

During tests in April, the Peshkabir-2 well yielded 3,000 bopd from the Jurassic horizon, which were trucked to the nearby Fish Khabur facilities for export.

Elsewhere on the Tawke block, DNO will be rolling out its expanded drilling programme that saw the mobilisation of a third rig. The revised plans for 2017 now call for two Jeribe wells and six Cretaceous wells.

The two Jeribe wells, Tawke-38 and 39, will begin production in the second half of the year, so too will the Cretaceous Tawke-42 well.

In its financial summary, DNO said it had recorded a quarterly profit of USD 14.7 million, overturning a USD 4.9-million loss over the same period n 2016. Quarterly revenue came out at USD 76.6 million up from USD 49.6 million one year ago.

Production during the first three months of 2017 averaged 115,900 bopd, the majority of which, 111,000 bopd, in the Kurdistan Region. DNO’s working interest hit 71,300 bopd.

The company added that it had entered into operation a 400,000-barrel third-party storage facility to cushion the impact of a halt in pipeline exports.

In related news, DNO on Thursday also announced it had acquired privately held explorer Origo Exploration Holdings. Upon regulatory approval, DNO will re-enter the Norwegian offshore arena after a six-year break.