Shares in DNO ASA, the Norwegian oil and gas operator, were trading up 5 percent on Thursday morning after the company announced expanded investments, including doubling of planned 2017 wells at the Tawke field in the Kurdistan region of Iraq, on the back of strong first quarter results.
The Company reported quarterly net profit of USD 15 million, reversing a net loss of USD 31 million in the previous quarter. Revenues were up 83 percent to USD 77 million on operated production averaging 115,900 barrels of oil equivalent per day.
The expanded 2017 Tawke program includes eight new production wells, of which six are Cretaceous and two shallow Jeribe wells. A third drilling rig has been mobilized following receipt of regular payments for oil exports through Turkey. Year to date, the Company has been paid USD 122 million net, including USD 23 million towards DNO's booked receivables for previous deliveries.
Elsewhere on the Tawke license, the Company produced an average of 3,000 barrels of oil per day from the Jurassic horizon of the recently drilled Peshkabir-2 well during a two-week test period in April. These volumes were trucked to DNO's facilities at Fish Khabur and exported. Extended testing of the shallower Cretacous discovery in the Peshkabir-2 well has commenced. The Peshkabir-3 appraisal/production well will spud this summer.
The Company is preparing an accelerated development plan utilizing an early production facility to bring the Peshkabir field onstream by the end of this year.
In a separate release, the Company today announced a fast-track reentry into Norway with the acquisition of privately-held Origo Exploration Holding AS.