DNO gains after new wells push Iraq' s Tawke field output to record
OSLO, Norway (Bloomberg) -- DNO International ASA gained the most in a month in Oslo after two new horizontal wells increased output at its Tawke field in the Kurdistan region of Iraq to a record.
The company rose 5.7%, the biggest gain since Feb. 20, to 23.17 kroner by 9:38 a.m. About 1.9 million shares were traded, a third of the average three-month daily volume. DNO began output from the wells at a combined flow rate of 37,000 bopd, pushing Tawke’s production to a record 129,000 bpd on March 5, it said today in a statement.
“With the exceptional results from these latest wells and the installation of early production packages and a new 24-in. pipeline, we are on track to meet our ambitious deliverability goal of 200,000 bpd in 2014,” Executive Chairman Bijan Mossavar-Rahmani said in the statement.
DNO and its Tawke partner Genel Energy Plc have been caught in a dispute between the semi-autonomous Kurdistan region and the central Iraqi government over oil-revenue sharing, contracts and land. The Kurds are now negotiating with the Iraqi government how to market crude flowing through a pipeline to Turkey that was completed last year.
DNO, the first foreign company to drill in Iraq after the U.S. invasion in 2003, has sold much of its output on the local market because of the dispute. It got two-thirds of its output from Kurdistan last quarter and has 55% of Tawke, with Genel owning 25% and the regional government 20%.