DNO has strong operational performance in Q2

oil_iraq

DNO International had an impressive second quarter of 2011 with increased production to 48,582 barrels of oil per day (bopd) and the doubling of the reserves at the Tawke field in Iraq.

“DNO International achieved strong results so far this year. The excellent reservoir quality of the Tawke field in the Kurdistan Region of Iraq has been proved through stable high production in the first half of 2011,” said Managing Director Helge Eide.

The firm also released its results for the second quarter of 2011, with a return to profit after making a net loss in the last four quarters, including a loss in Q1 2011of US$12.02mn.

For Q2 2011 DNO profits hit US$39.6mn. Sales in the second quarter this year increased to US$134.5mn, up from US$52.31mn in the same quarter 2010. EBITDA was US4103.8mn in this quarter, up from US$31.4mn in the second quarter last year.

The Tawke field can currently deliver gross levels in excess of 70,000 bopd. The gross exported crude oil from the Tawke field was 66,502 bopd in the second quarter. Additional third party crude oil was delivered and exported via the DNO operated facilities at Fishkabour at an average rate of 15,369 bopd, bringing the overall exported rate through these facilities to 81,871 bopd in the second quarter.

In Yemen, the operations have been running as normal during the quarter. The second quarter working interest production was 5,390 bopd and the net entitlement production was 2,869 bopd. There is an overall decline in production as expected, but production year-to-date is maintained somewhat higher than forecast.

Test production from the Bastora-1A horizontal sidetrack in the Erbil license in Kurdistan commenced n the quarter. Test production to date has demonstrated sustainable gross fluid production of around 2,000 barrels of oil/water per day. A declaration of commerciality for the Benenan and Bastora discoveries was filed with the Kurdish authorities in June.

Drilling of the Summail-1 well commenced on 19 April. An open hole test (DST) was undertaken at the top of the Cretaceous interval, and the well flowed 4 million standard cubic feet of gas per day (scf/d) through a restricted choke size (24/64 inch). The well has now drilled through the remainder of the Cretaceous interval into Jurassic. Oil shows has been observed in several intervals. The forward plan is to drill into the Triassic interval and thereafter flow test the various intervals where hydrocarbons have been observed while drilling.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

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