DNO Jumps Most in Month as New Wells Push Tawke Output to Record
DNO International ASA (DNO), a Norwegian oil producer focused on northern Iraq, gained the most in a month in Oslo after two new horizontal wells increased output at its Tawke field in the Kurdistan region of Iraq to a record.
The company rose 5.7 percent, the biggest gain since Feb. 20, to 23.17 kroner by 9:38 a.m. About 1.9 million shares were traded, a third of the average three-month daily volume. DNO began output from the wells at a combined flow rate of 37,000 barrels of oil daily, pushing Tawke’s production to a record 129,000 barrels a day on March 5, it said today in a statement.
“With the exceptional results from these latest wells and the installation of early production packages and a new 24-inch pipeline, we are on track to meet our ambitious deliverability goal of 200,000 barrels per day in 2014,” Executive Chairman Bijan Mossavar-Rahmani said in the statement.
DNO and its Tawke partner Genel Energy Plc (GENL) have been caught in a dispute between the semi-autonomous Kurdistan region and the central Iraqi government over oil-revenue sharing, contracts and land. The Kurds are now negotiating with the Iraqi government how to market crude flowing through a pipeline to Turkey that was completed last year.
DNO, the first foreign company to drill in Iraq after the U.S. invasion in 2003, has sold much of its output on the local market because of the dispute. It got two-thirds of its output from Kurdistan last quarter and has 55 percent of Tawke, with Genel owning 25 percent and the regional government 20 percent.
To contact the reporter on this story: Mikael Holter in Oslo at email@example.com
To contact the editors responsible for this story: Will Kennedy at firstname.lastname@example.org Tony Barrett, John Viljoen