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April 10,
2006, -- Shares of Norwegian oil firm DNO jumped
more than 10% on Monday amid optimism it will start
pumping crude in Iraq.
DNO said that if tests go well, it should start
production at its Tawke field in northern Iraq early
in 2007.
In mid-morning trading, the stock was trading at
54.50 crowns, valuing the firm at 12.2bn crowns
($1.9bn: £1bn).
DNO has been one of the best performers on the Oslo
stock exchange over the past year, buoyed by higher
crude prices and the outlook for new wells.
DNO ASA (DNO.NO) is pleased to release an
update on the preliminary evaluation results and
forward plans for the Tawke Area in Kurdistan
(Northern Iraq).
As reported in the Stock Exchange Notice on 23 March
2006 the Tawke # 1 well was nearing its total depth
and all exploration objectives had been met.
The well data acquired to date have been reviewed
and evaluated. Interpretations of wireline logs and
other well data show the presence of oil in five
reservoir intervals. Based on these results it has
been decided to perform several well tests in Tawke
# 1.
The objectives of the well tests in Tawke # 1 are to
evaluate the production capacity of the individual
reservoir intervals and to determine the
characteristics of oil.
Testing of Tawke # 1 will be undertaken before
moving the rig to the next well location. Following
the completion of the testing program the rig will
move to the location of Tawke # 2 some 2 km west of
Tawke # 1. Tawke # 2 is planned to be drilled to
approximately 2,000 meters.
DNO is currently undertaking feasibility studies for
future possible oil production from the Tawke Area,
including a fast-track option. Based on the results
to date and contingent on successful outcome of the
well tests, first test production of oil from the
Tawke Area could commence first quarter 2007.
DNO has also contracted a second rig from Greatwall
Drilling Company Ltd. which will be mobilized to the
PSA area of operations in June 2006. This rig has
the same drilling capabilities as the first rig. In
addition 3D seismic acquisition over the Tawke Area
is planned to commence in May 2006.
On Saturday 8th April a press conference was
arranged in Erbil by Kurdistan Regional Government
("KRG") announcing the status of Tawke # 1.
Representatives from the Ministry of Oil in Baghdad
were present during this press conference, including
the Deputy Minister of Oil, Mo'tasam Akram.
Commenting on the results Managing Director Helge
Eide says:
"We are very pleased to have drilled our first
exploration well in Iraqi Kurdistan, which
represents another milestone achieved by DNO. The
considerable efforts by our project team have
ensured that the drilling has been undertaken
successfully and safely. This demonstrates DNO's
capabilities of undertaking challenging operations
as a prudent Operator.
"We would also like to give credit to the Kurdistan
Regional Government for their valuable assistance
and cooperation in planning and execution of our
operations. We are looking forward to receiving the
results from the well testing, which will serve as
an important and valuable strategic indicator for
the future plans of our joint project with the KRG
in Iraqi Kurdistan".
www.dno.on | BBC
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