2013-09-16 08:04:03 -
Oslo, 16 September 2013 -- DNO International ASA ("DNO International"), the
Norwegian oil and gas company, announced today that it has commenced extensive
testing of the Tawke-23 exploration well in the Kurdistan region of Iraq. The
well is the second horizontal well drilled by the Company in the Tawke field and
has encountered continuous oil shows within a 930 metre horizontal section in
the main Cretaceous reservoir. The test program, expected to last up to three
weeks, will focus on ten fracture zones with production potential.
The Company's first horizontal well in the field, Tawke-20, tested 8,000 barrels
per day from each of ten producing intervals in the Cretaceous reservoir and is
currently on stream at an average rate of 25,000 barrels per day.
Also currently drilling in Kurdistan are
two other Tawke horizontal development
wells, Tawke-21 and Tawke-22, and the highly deviated Benenan-4 well in the
Erbil license designed to appraise the additional reserves encountered in the
Benenan field by the Benenan-3 well earlier this year. Benenan-3 has been
completed and temporary production facilities installed, pending government
approval to commence sales.
The Bastora-2 well in the Erbil license has been completed and temporary
production facilities are undergoing installation. The Bastora field development
plan was previously approved and the Ministry of Natural Resources now has
authorized sales from the field with first deliveries anticipated in October.
Elsewhere, drilling of the Saleh-8 well offshore the Emirate of Ras Al Khaimah
has concluded and the rig released. The 5,205 metre well, including a 327 metre
horizontal section, was drilled into the Thamama reservoir and delivered initial
rates of 15 million cubic feet of natural gas and 1,000 barrels of condensate
per day. The well subsequently exhibited a decline in flowing wellhead pressure
and rates along with increasing water production. Saleh-8 will be tied into the
existing infrastructure to enable production and pressure monitoring. In the
interim, artificial lift studies will be undertaken on the partially depleted
upper Wasia reservoir. An exploration well is also planned to be drilled to the
east of the Saleh field by another operator in 2014. DNO International will be
carried for a 16 percent interest on this well.
In Block 32, Republic of Yemen, the Salsala-1 exploration well has drilled
through the primary Shugra formation target prospect. The well has reached
3,840 metres and is currently being logged and samples taken before resumption
of drilling to a depth of 4,100 metres.
Based on current trends, DNO International expects third quarter production from
its fields in Kurdistan, Oman and Yemen will reach record gross levels of around
85,000 barrels of oil equivalent per day (boepd), corresponding to an estimated
Company Working Interest (CWI) production of 50,000 boepd. Gross production for
full year 2012 was 67,238 boepd, corresponding to 38,354 boepd on a CWI basis.
The Company expects third quarter revenues will be around NOK 750 million.
--- DNO International ASA is an Oslo-listed, Middle East and North Africa
focused oil and gas company holding stakes in 20 blocks 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, the Tunisian Republic and Somaliland.---
Oslo, 16 September 2013
DNO International ASA
Queries: Bjorn Dale (email@example.com
or tel: +47 909 79 889)
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
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Source: DNO International ASA via Thomson Reuters ONE