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DNO sees bigger Kurdistan oil discovery
14.11.2006
By Sumedha Senanayake |
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Oslo, Norway,
November 14, -- Norway's DNO, the first foreign oil
firm to drill in Iraq after the liberation, said its
oil discovery in Kurdistan autonomous Region in
(Iraq) is bigger than expected and confirmed
production would begin in early 2007.
Shares in DNO jumped by as much as 5.6 per cent in
early trade as investors cheered plans to launch
production in the first quarter of 2007 despite
Iraq's sectarian violence and uncertainties over
rights to tap its oil riches.
DNO said the Tawke 2 well in Kurdish-controlled
northern Iraq has tested 3,840 barrels of oil per
day, confirming a western extension of its Tawke oil
discovery.
'Preliminary results from the well indicate
increased reserves,' DNO said in a statement.
DNO chief executive Helge Eide said the company
would start production at two of its three wells in
the Tawke discovery.
'We are now (planning to) start two of the three
wells, so it (daily production) would not be far
from 10,000 barrels, but we will not say anything
exact now,' Eide said.
DNO also said it was in a process of finalising an
agreement with the Kurdistan Regional Government to
increase its working interest in the production
sharing agreement by 15 percentage points to 55 per
cent.
In return for the bigger stake, DNO would provide
all of the funding of the project costs, the company
said.
DNO, whose main production operations are in Yemen,
has a market capitalisation of around $1.8 billion. |
Oil fields in Kurdistan Region (Iraq)
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'The results from Tawke 2 are very encouraging and
confirm the robustness of the Tawke development,'
Eide said in a statement.
'We are on schedule to achieve our important near
term target to produce the first oil from Tawke
during the first quarter of next year,' he said.
DNO.no
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