By John Lee.
Shares in Dragon Oil closed up 0.2 percent on Wednesday following the discovery of oil at Block 9.
Kuwait Energy, Dragon Oil's partner in Block 9, issued the following update on the exploration well, Faihaa-1, being drilled in the block:
Kuwait Energy announces that the consortium comprised of Kuwait Energy (70% and operator) and Dragon Oil (30%) has made its first oil discovery at 'Block 9', Iraq.
The successful discovery was at the consortium's first target, the Mishrif formation at 2,700 meters, in its Block 9 exploration well, 'Faihaa-1', located in Northern Basra, Iraq.
Preliminary tests of the Faihaa-1 Mishrif formation resulted in a flow rate of circa 2,000 BOPD of 20 API oil on 32/64" choke. The consortium will conduct more detailed testing on Mishrif towards the end of the year.
The consortium's strategy is to continue drilling activities, exploring deeper horizons and collecting further data, to fully evaluate the discovery and to define an appraisal plan."
Dr Abdul Jaleel Al Khalifa, CEO, Dragon Oil plc, commented:
"We are pleased to report along with our operating partner Kuwait Energy an oil discovery in the first target, the Mishrif formation, in Block 9, Iraq. This represents the first significant success in Dragon Oil's exploration portfolio. Drilling continues towards the second target, which will be tested later this year, and we look forward to a full evaluation of the discovery and the drawing up of a block appraisal plan by the consortium."
(Sources: Dragon Oil, Yahoo!)