DNO International ASA (DNO), the oil producer focused on the Kurdistan region of northern Iraq, said it may increase its production target after a discovery at the region’s Tawke field and a successful test of another well.
The latest find, at the deep Tawke-17 well, tested at 1,500 barrels a day, the company said in a statement today. The find, more than 200 meters below the main field reservoir, “likely bumps recoverable reserves on the Tawke license to the one billion barrel mark,” Chairman Bijan Mossavar-Rahmani said.
The shares rose as much as 9.1 percent to 11.20 kroner, the highest intraday price since Oct. 2. DNO stock has gained 46 percent in the past year.
DNO, based in Oslo, also said the Tawke-20 well, its first horizontal well at the field, flowed at an average of 8,000 barrels a day from each of the first four of 10 fractured corridors penetrated by the well. If a second well, Tawke-23, backs up the results of Tawke-20, DNO will “consider further enhancements to our current target of 200,000 barrels a day of production capacity by 2015,” the company said.
DNO, the first foreign company to drill for oil in Iraq after the U.S.-led invasion in 2003, has been caught in a conflict between the semi-autonomous Kurdistan Regional Government and central Iraqi authorities over oil revenue sharing, production contracts and land.
DNO International is the operator of Tawke with a 55 percent stake. Genel Energy Plc (GENL) has 25 percent, and the Kurdistan Regional Government the remaining 20 percent.
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