By John Lee.
Shares in DNO, the Norwegian oil and gas operator, closed up more than 10 percent on Wednesday as the company announced the startup of an active drilling program at its flagship Tawke field in the Kurdistan region of Iraq.
The company said it will boost investments on the back of seven consecutive monthly oil payments, the last three of which were in line with its contractual entitlements.
The company also reported the first quarterly profit from operating activities since mid-2014 of USD 8 million and indicated it is on track towards increased profitability in 2016.
At Tawke, workover operations at three existing wells reversed production declines and added 10,000 barrels of oil per day (bopd) of incremental output in the first quarter. Another seven workovers are planned this year. In addition, the company will drill five new Tawke production wells, three targeting the field's main Cretaceous reservoir and two targeting the shallower Jeribe reservoir.
Tawke production during the first quarter averaged 91,700 bopd, of which 87,200 bopd was delivered for pipeline export through Turkey. Output was down as a result of the extended closure of the Turkish portion of the export pipeline in the second half of February and first half of March. Once pipeline operations were restored, Tawke production averaged 118,900 bopd in April, of which 117,800 bopd was delivered for export.