Genel Energy plc notes that DNO ASA, as operator of the Tawke field (Genel 25% working interest), has today published updated estimates of Tawke field reserves.

At 31 December 2016, Tawke gross proved (1P) reserves are estimated by DNO ASA at 348 mmbbls, compared to 387 mmbbls at year-end 2015.

At 31 December 2016, gross proved plus probable (2P) reserves are estimated at 504 mmbbls, compared to 543 mmbbls at year-end 2015.

Tawke production in 2016 totalled 39 mmbbls.

At 31 December 2016, Tawke 2C contingent resources are estimated at 100mmbbls, unchanged from year-end 2015.

At the Peshkabir field, gross 2P reserves at 31 December 2016 stood at 32 mmbbls, all of which is located in the Jurassic reservoir, discovered in 2012. Peshkabir’s 2C resources at 31 December 2016 are estimated at 111 mmboe, of which 104 mmbbls is oil and 7 mmboe is gas. The Cretaceous discovery at the Peshkabir field, announced by the Tawke field partners in January 2017, added 48 mmboe of gross 2C resources, which is principally oil. At year-end 2015, Peshkabir’s gross 2C resources stood at 63 mmboe.

(Source: Genel Energy)

By John Lee.

DNO ASA, the operator of the Tawke field, and its partner Genel Energy, have announced that they have received a payment of $35.45 million from the Kurdistan Regional Government (KRG) as payment towards November 2016 crude oil deliveries to the export market from the Tawke field.

The payment reflects full settlement of the invoiced amount for November 2016 oil sales, and includes $29.73 million towards monthly entitlement and $5.72 million towards recovery of historical receivables.

The payments will be shared pro-rata by DNO and Genel.

Tawke production in November averaged 115,363 bopd, of which 115,081 bopd was delivered for export through Turkey.

Genel Energy also announce that the Taq Taq field partners have received a gross payment of $16.55 million from the KRG for oil sales during November 2016. Genel’s net share of the payment is $9.10 million.

That payment reflects full settlement of the invoiced amount for November 2016 oil sales, and incorporates $13.83 million towards contractor monthly entitlement and $2.72 million towards recovery of historical receivables.

Gross oil sales from the Taq Taq field in November 2016 averaged 45,170 bopd, including both exports and Bazian refinery deliveries.

As agreed with the KRG, both exports and Bazian refinery deliveries during November 2016 were invoiced at the same pricing.

(Sources: Genel Energy, DNO)

By John Lee.

DNO ASA, the Norwegian oil and gas operator, today reported receipt of USD 8.41 million from the Kurdistan Regional Government as payment towards June 2016 crude oil deliveries to the export market from the Tawke field.

The payment completes settlement of the total invoiced amount for June 2016 of USD 38.41 million, for which a partial payment of USD 30.00 million was received in August 2016.

The funds are to be shared pro-rata by DNO and partner Genel Energy plc.

(Source: DNO)

DNO ASA, the Norwegian oil and gas operator, has announced that the Peshkabir-2 well currently drilling in the Kurdistan region of Iraq has discovered oil in the Cretaceous horizon in the southern flank of the Peshkabir field.

The well flowed at a stable rate of 3,800 barrels of 28° API oil per day on a 52/64 choke from an open hole test of a 170-meter interval. Pressure data supported by observations of oil shows from cuttings and side wall cores indicate a Cretaceous oil interval in excess of 300 meters.

Peshkabir-2 was spudded last October to explore the Cretaceous horizon and appraise the previously tested deeper Jurassic reservoir on a 2012 discovery 18 kilometers to the west of the company’s flagship Tawke field.

Following acquisition of new 3-D seismic, Peshkabir-2 was originally planned for 2015 but delayed following the drop in world oil prices and interruption in payments for the company’s production and exports from Kurdistan.

The well, currently drilling ahead of schedule and under budget, is expected to reach total depth of 3,500 meters and will be completed in the Jurassic by early February. Pre-spud estimates for drilling, open hole testing of the Cretaceous and completion stood at USD 17.5 million.

DNO is considering a number of options to step up appraisal of the new Cretaceous discovery including a geological side-track in the central part of the Peshkabir structure or a third well. Options are also under consideration for possible early Peshkabir production and trucking to the company’s gathering, processing and export facilities at Fish Khabur some 12 kilometers away.

Bijan Mossavar-Rahmani (pictured), Executive Chairman of DNO, said:

“We are very encouraged by what we have seen so far in this well … Certainly our subsurface and drilling teams have started the year on the right foot.”

The company will provide an update on the resource potential of both the Cretaceous and Jurassic horizons following post-well evaluation of all data acquired during Peshkabir-2 operations.

DNO operates and holds a 55 percent working interest in the Tawke license which holds the Peshkabir field. Genel Energy plc and the Kurdistan Regional Government hold a 25 percent and 20 percent interest, respectively.

(Source: DNO)

By John Lee.

Bloomberg reports that Sinopec — the state-owned China Petroleum & Chemical Corporation — is considering a takeover of the recently restructured Gulf Keystone Petroleum (GKP).

The news agency cites un-named sources as saying that the world’s biggest refiner is working with advisers and has made an approach to the company, which was taken over by creditors in September following a default on its bond payments.

Norway’s DNO withdrew an offer for the company last month, but said it would consider an all-cash offer at a lower price.

Shares in GKP have risen 20 percent since Tuesday, giving it a market capitalisation of £340 million.

(Source: Bloomberg)

By John Lee.

Bloomberg reports that Sinopec — the state-owned China Petroleum & Chemical Corporation — is considering a takeover of the recently restructured Gulf Keystone Petroleum (GKP).

The news agency cites un-named sources as saying that the world’s biggest refiner is working with advisers and has made an approach to the company, which was taken over by creditors in September following a default on its bond payments.

Norway’s DNO withdrew an offer for the company last month, but said it would consider an all-cash offer at a lower price.

Shares in GKP have risen 20 percent since Tuesday, giving it a market capitalisation of £340 million.

(Source: Bloomberg)

By John Lee.

Norway’s DNO has stated that its July 2016 proposal to acquire Gulf Keystone Petroleum (GKP) has expired, “as certain conditions to the recent financial restructuring set by Gulf Keystone itself appear not to have been met.”

In a statement, the company said:

“Given the resulting uncertainties about Gulf Keystone’s asset, commercial oulook and future rights and obligations at the Shaikan field, and following a careful review of Gulf Keystone’s latest reserves report, DNO is prepared to consider an all cash transaction but at a meaningful discount to the previous USD 300 million equivalent cash-and-shares offer.”

(Source: DNO)

DNO ASA, the Norwegian oil and gas operator, today announced a third consecutive quarter of operating profits and the completion of the first phase of the 2016-2017 drilling campaign at the Company’s flagship Tawke field in the Kurdistan region of Iraq.

Four new production wells at Tawke, three of which targeted the shallow Jeribe reservoir and one the deeper Cretaceous reservoir, have added more than 10,000 barrels of oil per day (bopd) of production at the field.

The Jeribe wells were drilled at a combined cost of USD 6 million and the Cretaceous well cost USD 7 million. Current field production averages just below 120,000 bopd.

With Tawke, it’s not just about field size and production level but about capital efficiency,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani, adding that the field is low cost, quick drill, high return and flexible.

We just drilled and completed a shallow well in ten days for less than USD 2 million that is now producing 3,000 barrels a day worth USD 3 million a month,” he reported. “This is one for the Guinness Book of World Records,” he said.

Elsewhere in Kurdistan, the Peshkabir-2 well was spudded in early October to appraise the Jurassic reservoir and explore the Cretaceous horizon on a previous discovery to the west of the main Tawke field. The well is currently drilling ahead at 2,000 meters and is expected to reach target depth of 3,500 meters in January 2017.

We can’t wait to take our foot off the brake at Tawke,” said Mr. Mossavar-Rahmani. The Company will drill two new Cretaceous wells in the first half of 2017 and plans have been drawn up to mobilize a third rig and drill additional wells at Tawke and Peshkabir.

But to proceed with significant new investments at Tawke, we need regular export payments from the Kurdistan Regional Government and a firm plan for repayment of the USD 1 billion in arrears to DNO,” he added.

While recent payments by the Kurdistan Regional Government for exports have been irregular and delayed, Tawke payments year-to-date have totaled USD 255 million, of which DNO received USD 184 million.

DNO reported operating profits of USD 9 million during the third quarter on revenues of USD 49 million, bringing year-to-date operating profits to USD 33 million. The Company exited the quarter with a cash balance of USD 266 million, up from USD 238 million at 1 January 2016.

(Source: DNO)

DNO ASA, the Norwegian oil and gas operator, today reported receipt of USD 31.33 million from the Kurdistan Regional Government as payment towards August crude oil deliveries to the export market from the Tawke field.

The funds, to be shared pro-rata by DNO and partner Genel Energy plc, include USD 26.27 million toward the monthly entitlement for August deliveries and USD 5.05 million toward the recovery of outstanding receivables for past deliveries.

Tawke production in August averaged 96,709 barrels of oil per day (bopd), of which 96,528 bopd was delivered for export through Turkey. This was down from July production levels of 117,992 bopd due to pipeline closures in Turkey and scheduled field facilities maintenance.

Tawke production during the third quarter averaged 109,159 bopd, of which 108,759 bopd was delivered for export through Turkey.

(Source: DNO)

By John Lee.

Norwegian oil and gas operator DNO has announced the completion of three new production wells at the Tawke field in the Kurdistan region of Iraq, as part of a stepped up drilling program kicked off in July 2016.

The Tawke-31 well, targeting the main Cretaceous reservoir will be brought on production following an acid stimulation program.

Two additional wells targeting the shallow Jeribe reservoir, Tawke-33 and Tawke-34, are also being readied for production.

A fourth well, Tawke-37, will be spud next week. The four wells are expected to cost less than USD 20 million in total and add about 10 percent to field output capacity.

Earlier this month the company also spudded the Peshkabir-2 well to appraise the Jurassic reservoir and explore the deeper Cretaceous horizon on a previous discovery to the west of the main Tawke field.

This well marks the completion of the current drilling program at the Tawke license which was initiated on the back of monthly export payments from the Kurdistan Regional Government.

Plans to engage a third drilling rig were dropped in September though the company expects to re-start investments to boost production to a targeted level of 135,000 barrels of oil per day (bopd) following the resumption of regular and predictable payments.

Tawke production during the third quarter averaged 109,159 bopd, of which 108,759 bopd was delivered for export through Turkey.

(Source: DNO)