Norwegian operator DNO ASA will ramp up activity in the Kurdistan region of Iraq where fast track development of the Peshkabir field is expected to boost output to 50,000 bo/d by yearend. Growing production and strong half-year results—including an 89% year-over-year increase in revenues to US$289 million—contributed to company plans to pay its first dividend distribution to shareholders in 13 years. DNO reported a net profit of US$61 million and free cash flow of US$142 million during the first half of the year.
The company has three rigs operating across its licenses with a fourth to be added next month. Two rigs will be active at the flagship Tawke field to reverse natural field decline through workovers and the drilling of two wells in the main Cretaceous reservoir and two wells in the shallow Jeribe reservoir.
"Kurdistan is back and so is DNO," said Bijan Mossavar-Rahmani, DNO executive chairman.
Operations at the Baeshiqa license with begin with mobilization of another rig to spud the first well in September as part of a back-to-back, 3-well exploration program. DNO acquired a 32% interest in and operatorship of the license last year, joining ExxonMobil (32%), the Turkish Energy Co. (16%), and the Kurdistan Regional Government (20%).
At Peshkabir, the fourth rig will spud Peshkabir-8 in 10 days followed by Peshkabir-9 in October. Early production and successful appraisal have raised previous field proven (1P) and proven and probable (2P) reserves. Two newly completed wells, Peshkabir-6 and Peshkabir-7, will begin testing by the end of August before being placed on production. Peshkabir-6 is key to unlocking further Cretaceous and Triassic reserves, the company said (OGJ Online, July 30, 2018).
"Peshkabir is proving prolific in production and has generated over USD 300 million in gross revenue since startup last year or three times the investment," said Mossavar-Rahmani.
Elsewhere
Elsewhere, DNO closed the sale of its Tunisia assets and relinquished Block SL18 in Somaliland as part of its plan to divest non-core assets to focus on operations in Kurdistan and Norway.
Offshore Norway, the company added 6 new exploration licenses for a total of 21. Participation in one exploration well is planned for the fall, followed by at least 5 wells next year.
DNO retains indirect interests in North Sea assets through its 28.23% stake in Faroe Petroleum plc
The planned annual dividend distribution of US$50 million (NOK 434 million), payable in two tranches, is subject to shareholder approval.
