DNO Q1 production volume high

DNO,production,Q1 2011,milestone,crude oil export,Kurdistan,Tawke field, technical upgrades,Tawke CPF, Fishkabour tie-in point, Yemen production,Yaalen Image credit to www.ekurd.net

DNO's production in the Q1 2011 hit 39,945 bopd, up from 12,442bopd in the same quarter last year.

An important milestone for the company in this quarter was the start of crude oil export from Kurdistan in February of this year. Export production from the Tawke field commenced in February 2011.

The fast ramp up from an initial 10,000 bopd export rate in the beginning of February, to the present volumes being tested above 80,000 bopd has been achieved through technical upgrades at the Tawke CPF and the Fishkabour tie-in point. The Tawke facilities have proved stable gross production above 65,000 bopd.

The Yemen production continued to decline, as expected, and is reported to 5,881 bopd in the first quarter this year, down from 6,156 bopd in the fourth quarter 2010. DNO is working to increase production in Yemen through exploration and fast track field development. First contribution to increased production will be from the Yaalen field in block 47, expected to start production in the second quarter of 2012.

A horizontal sidetrack at the Bastora-1 well in the Erbil license in Kurdistan has been completed and production tests will commence in mid May. The Summail-1 well in the Dohuk license was spudded on 19 April and the Peshkabir well in the Tawke license will be drilled back-to-back with the Summail-1 well.

"DNO is producing high volumes of crude oil in Kurdistan. A first cash advance to DNO of US$110mn has now been confirmed by the Kurdistan Regional Government and forms a basis for increased activities by DNO in Kurdistan going forward", said Managing Director Helge Eide.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
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