Kurdistan’s Tawke ‘Sea of Oil’ for DNO as Well Flow Hits Record

A well at DNO International ASA (DNO) and Genel Energy Plc (GENL)’s Tawke oilfield in northern Iraq flowed at a record rate, bolstering prospects for higher output from the region as it completes an export pipeline to Turkey.

The Tawke-23 well flowed at 32,500 barrels of oil a day after horizontal drilling, DNO said in a statement in Oslo. The companies have initiated sales from the well, which is the second horizontal one to be drilled at the field.

“The exceptional results from Tawke-20 and Tawke-23 have fundamentally changed our approach to developing this field and also our expectations for its performance,” said Bijan Mossavar-Rahmani, DNO International’s executive chairman. "By any measure, these are prolific wells tapping into what increasingly feels like a sea of oil.’’

Kurdistan is building a pipeline to Turkey after years of disputes with the central government in Baghdad over oil payments. The Kurds expect to export 1 million barrels a day of oil by 2015 and 2 million by 2019, said Ashti Hawrami, the KRG’s minister of natural resources, in comments published on the government’s website on Oct. 3.

DNO rose 5.1 percent to 15.4 kroner, the highest level since June 2006. Genel rose 0.9 percent to 983 pence as of 8:31 a.m. in London.

DNO holds a 55 percent stake in the Tawke license and Genel owns 25 percent. The Kurdistan Regional Government holds the remaining 20 percent.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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