DNO International ASA , the oil company focused on the northern Iraqi region of Kurdistan, rose the most in two weeks in Oslo trading after striking more oil at one of its discoveries in the area.
The Oslo-based company rose as much as 3.6 percent, the most since Aug. 28, and traded up 2.6 percent at 8.915 kroner as of 2:33 p.m. in Oslo, making it the second-biggest gainer on the benchmark OBX index. DNO has climbed 19 percent this year.
Drilling at the Benenan-3 well at the field in northern Iraq encountered movable oil in a rock formation that wasn’t previously tested conclusively, DNO said in a statement. It is testing the well to acquire more data and also said it is continuing drilling at its Tawke field.
“Through these wells and others planned next year, the company is targeting in excess of 500 million barrels of gross unrisked oil and gas reserves, predominantly in Kurdistan,” said Bijan Mossavar-Rahmani, DNO’s executive chairman. “Our drilling campaign is aggressive, it is balanced between exploration and development and it is consequential.”
Oil producers including Total SA, ExxonMobil Corp. and Chevron Corp. have recently entered Kurdistan. DNO became the first foreign company to drill for oil in Iraq since the 1970’s after the U.S.-led invasion of 2003.
DNO maintained its goal to boost total capacity at the Tawke field in the same region to 100,000 barrels a day by the end of this year, it said Aug.22.