DNO Q1 results out, expands drilling in Kurdistan
DNO reported quarterly net profit of US$15 million, reversing a net loss of US$31 million in the previous quarter.
DNO ASA, the Norwegian oil and gas operator, recently announced expanded investments, including doubling of planned 2017 wells at the Tawke field in the Kurdistan region of Iraq, on the back of strong first quarter results.
The company reported quarterly net profit of US$15 million, reversing a net loss of US$31 million in the previous quarter. Revenues were up 83 percent to US$77 million on operated production averaging 115,900 barrels of oil equivalent per day.
The expanded 2017 Tawke programme includes eight new production wells, of which six are Cretaceous and two shallow Jeribe wells. A third drilling rig has been mobilised following receipt of regular payments for oil exports through Turkey. Year to date, the company has been paid US$122 million net, including US$23 million towards DNO's booked receivables for previous deliveries.
Elsewhere on the Tawke licence, DNO produced an average of 3,000 barrels of oil per day from the Jurassic horizon of the recently drilled Peshkabir-2 well during a two-week test period in April. These volumes were trucked to DNO's facilities at Fish Khabur and exported. Extended testing of the shallower Cretacous discovery in the Peshkabir-2 well has commenced. The Peshkabir-3 appraisal / production well will spud this summer.
DNO is preparing an accelerated development plan utilising an early production facility to bring the Peshkabir field onstream by the end of this year.
Separately, DNO announced a fast-track re-entry into Norway with the acquisition of privately-held Origo Exploration Holding AS.