DNO ASA, a Norwegian oil and gas operator controlled by RAK Petroleum PLC, reported it is using increased revenues for a drilling program at Tawke oil field in the Kurdistan region of Iraq, and executives said the company is on track toward increased profitability for 2016 (OGJ Online, Aug. 20, 2015).
Earnings statements showed DNO reported its first quarterly profit from operating activities since 2014. First-quarter 2016 revenue was just under $50 million, up from $26 million for the same quarter last year. DNO said earnings before interest, tax, depreciation, and amortization were nearly $24 million compared with losses of more than $34 million for first-quarter 2015.
First-quarter Tawke workovers to three wells reversed production declines, adding 10,000 b/d of incremental oil output. The three workovers cost $1.5 million total and were completed in about 30 days. Another seven workovers are planned yet this year.
DNO also plans to drill five new Tawke production wells, three targeting the field’s main Cretaceous reservoir and two targeting the shallower Jeribe reservoir.
Tawke first-quarter production averaged 91,700 b/d, of which 87,200 b/d went into an export pipeline through Turkey. Closure of the Turkish export pipeline during the second half of February and first half of March hampered output in those months.
Once pipeline operations were restored, Tawke production averaged 118,900 b/d in April, of which 117,800 b/d was exported.
Later this year, DNO plans to drill an appraisal well to evaluate the Peshkabir discovery. If successful, Peshkabir could be quickly tied into existing infrastructures. Excluding Peshkabir, DNO has set a Tawke production target of 135,000 b/d following its 2016 investments.