DNO Boosts Production in Kurdistan

DNO reported the status of its activities in Kurdistan Region of Iraq.

Summail-1 exploration well update

The Summail-1 exploration well was spudded on April 19, 2011. The well has now been drilled ca. 25 meters into the Cretaceous interval and hydrocarbon shows were detected while drilling. An open hole test (DST) was undertaken of this top interval, and the well flowed 4 million standard cubic feet of gas per day (scf/d) through a restricted choke size (24/64 inches).

The drilling will now continue through the total Cretaceous section, which has an estimated total thickness of 800 meters, and testing will be undertaken as required. Thereafter the plan is to set casing and drill into the Jurassic and Triassic intervals.

Bastora-1A test production

The Bastora-1A well is a horizontal side-track drilled from the original Bastora-1 discovery well. A horizontal section of 660 m in length was drilled through one of the oil filled carbonate zones with the objectives of penetrating multiple fracture systems to enhance productivity and furthermore enable the well to be used in an early production concept. Testing of the well commenced by using artificial lift through installation of a down hole jet pump, and as previously reported, preliminary results indicated initial test rates of 2,000 to 2,300 bopd of crude oil of 18-19 API. The flow from the well has now stabilized at around 1,700 - 1,800 bopd and the crude oil produced is trucked to the DNO operated facilities at Tawke for export.

The forward plan is to continue flowing the Bastora-1A well in order to acquire more production and reservoir information, which will serve as an important input to the development plan to be prepared for the Bastora and Benenan oil discoveries. DNO as Operator will issue a declaration of Commercial Discovery for these two discoveries to the KRG by June 25, 2011.