DNO drilling new Tawke wells on back of profitable second quarter

OSLO, Norway -- DNO has announced a second consecutive quarter of operating profits and the launch of an aggressive drilling campaign at the company's flagship Tawke field in the Kurdistan region of Iraq.

Following an extensive workover campaign at Tawke, five new production wells will be drilled in the second half of the year to boost capacity. Two rigs are currently active at Tawke; the Tawke-31 well, targeting the main Cretaceous reservoir, is the first production well to be drilled at the field since late 2014 and will reach target depth of 2,200 m in September. A third rig will be added to drill an appraisal well in the fourth quarter at the previously discovered Peshkabir field.

The company's operated production in the second quarter climbed 27% to 122,900 boed. Tawke production stood at 117,000 bopd, nearly all of which was exported at an average price of $34/bbl.

Company-wide revenues reached $61 million, marking the fifth consecutive quarter in which revenues totaled $50 million or higher. DNO's operating profit in the second quarter was $16 million, up from $8 million the previous quarter.

"Resumption of regular and predictable export payments underpin new investments at Tawke and other fields," said DNO's Executive Chairman Bijan Mossavar-Rahmani. "There is more value we can unlock in Kurdistan," he added.