DNO International ASA : DNO International Updates Operations
Oslo, 10 April 2013 -- DNO International ASA ("DNO International"), the
Norwegian oil and gas company, announced today that it has commenced extensive
testing of the Tawke-17 exploration well in the Kurdistan Region of Iraq. At
4,775 metres, the well is the deepest drilled by the Company in the Tawke
field and has encountered oil and gas shows in previously untested Jurassic
and Triassic intervals underlying the main Cretaceous producing zones of the
field. The planned test program, expected to last up to three months, will
focus on seven newly identified reservoir intervals with production potential.
"We are encouraged by what we have observed in the Jurassic and Triassic
intervals of the Tawke field and the test program now underway represents an
important step in hopefully confirming and unlocking the additional deeper
resource potential of what is already a world-class asset," said Bijan
Mossavar-Rahmani, DNO International's Executive Chairman.
DNO International holds a 55 percent interest in and operates the Tawke
license. Genel Energy plc holds 25 percent and the Kurdistan Regional
Government the remaining 20 percent interest.
Other wells currently drilling in Kurdistan are the Tawke-20 development, the
first horizontal well in the Tawke field, and the Bastora-2 appraisal well in
the Erbil license. The previously drilled Benenan-3 well, also in the Erbil
license, is undergoing completion and will be put on long term test production
Elsewhere, in Block 47, Republic of Yemen, the Yaalen-4 and Yaalen-5 appraisal
wells have been drilled and temporarily suspended; development of the Yaalen
field continues with first oil expected by yearend at a projected gross
initial rate of 5,000 barrels per day. The ZPEB-905 rig has been moved to
nearby Block 43 to drill the Nabrajah-9S3 appraisal well. This well will be
drilled as a sidetrack from the previously drilled Nabrajah-9 well and target
the deeper Shuqra/Basement interval at the southwest location of the field.
In Block 8, Sultanate of Oman, the Company is planning a two-well intervention
program to optimize field performance in the West Bukha field. After producing
around 0.5 million barrels of oil from a lower interval, the West Bukha-5 well
has been temporarily suspended until another previously identified interval is
brought on production later this month. In addition an attempt will be made to
initiate oil production from an additional unperforated interval in the West
Bukha-3 well. The Company has also completed drilling of a new development
well in the Bukha field. Work is currently ongoing to establish flow from the
Bukha-4 well as a gas producer. Current gross daily production from Block 8
averages 13,000 barrels a day of oil and condensate and 50 million cubic feet
The Noble Roy Rhodes rig is being mobilised to initiate redevelopment of the
Saleh field offshore the Emirate of Ras Al Khaimah. The first well to be
drilled, Saleh-8, is designed as a horizontal well targeting oil in the
previously untapped Thamama reservoir.
DNO International recorded gross production of 55,639 barrels of oil
equivalent per day (boedpd) during the first quarter of 2013, corresponding to
a Company Working Interest (CWI) production of 29,061 boepd. The
corresponding figures for 2012 were 67,238 boepd gross and 38,354 boepd CWI.
The decrease reflects reduced deliveries from the Tawke field in Kurdistan
following a 17-day maintenance shutdown of the Tawke refinery in February and
lower March deliveries to the local market during the Navruz or New Year
holidays. Higher deliveries have resumed in April.
Based on preliminary compilations, the Company expects first quarter revenues
will range between NOK 570 million to NOK 600 million. At the end of the
period, the Company's free cash position increased by approximately NOK 200
million to NOK 1.70 billion. Gross debt at period end was NOK 1.37 billion,
representing a net cash position of NOK 330 million. The Company's first
quarter results will be announced 7 May 2013.
--- DNO International ASA is an Oslo-listed, Middle East and North Africa
focused, oil and gas company holding stakes in 17 licenses in various stages
of exploration, development and production both onshore and offshore in the
Kurdistan Region of Iraq, the Republic of Yemen, the Sultanate of Oman, the
United Arab Emirates and the Tunisian Republic. http://www.dno.no ---
Oslo, 10 April 2013
DNO International ASA
Queries: Tom Bratlie (firstname.lastname@example.org or tel: +47 905 21 904)
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Source: DNO International ASA via Thomson Reuters ONE
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