Dana Gas has announced a new oil discovery in its fields in the Kurdistan Region of Iraq (KRI) and the largest gas reserves in Iraq, according to a press release.

The company revealed that its share of the proved plus probable (2P) hydrocarbon reserves at Pearl Petroleum Company’s Khor Mor and Chemchemal fields in the region have increased by 10%, following the recent certification of reserves by Gaffney Cline Associates (GCA).

This is translated to a gross increase in the share of Dana Gas in the field’s reserves to 1.087 billion barrel of oil equivalent (boe).

“We believe that this is just the tip of the iceberg confirming our estimate of oil resource potential of over 7 billion barrels. These additional resource declarations will underpin our future development plans which will provide a reliable source of energy to meet the needs of electricity generation as well as industrial development in the region.” CEO of Dana Gas, Patrick Allman-Ward, said.

Over 50 million of oil reserves have been booked in the Khor Mor Field for the first time. The two new gas production trains are expected to generate up to $350-400 million of annual revenues to Dana Gas in 2023.

Pearl Petroleum previously signed a 20-year gas sale agreement with the Kurdistan Regional Government to facilitate the production and sale of an additional 250 million standard cubic feet per day (mmscf/d).

Pearl’s plan is increasing the output to 650 mmscf/d in 2022, then to 900 mmscf/d by 2023. The two new gas productions will generate between $175 million and $200 million to the company’s share of revenues.