DNO International has reported oil shows at the Pehkabir-1 exploration well in Iraqi Kurdistan, although analysts believe the commerciality of the discovery is ”uncertain”.
The probe being drilled on the Tawke production sharing contract is targeting gross unrisked mean resources of 304 million barrels at the West Dohuk structure.
It struck oil shows while drilling the top section of the Cretaceous interval and core samples are now being collected, the Norwegian independent stated in a drilling update.
An open-hole test will be considered before drilling restarts at the well, which was earlier delayed due to casing repairs, the company added.
However, Oslo-based analyst Teodor Sveen Nilsen of Swedbank First Securities said in a note that no volumes have been announced and “the commerciality of the well is in our view still uncertain”.
DNO said drilling of the Tawke Deep exploration well is set to kick off in the third quarter after gaining approval from partners, targeting 200 million barrels of gross unrisked mean resources in Jurassic and Triassic intervals.
The partners, including Genel Energy, are seeking to further boost production volumes in the PSC with the ongoing Tawke 16 appraisal well on the northern flank of the Tawke field, which is expected to reach the main target within the next few weeks.
DNO reported higher working interest oil production from its Kurdistan and Yemen operations in December of 42,183 barrels per day, compared with 31,034 bpd the previous month, mainly driven by a 41% increase in Tawke output.
The company’s working interest production for the fourth quarter was 34,656 bpd with the full-year figure at 39,966 bpd.
From this year, Rak Petroleum’s working interest output from its Oman assets, which amounted to 5706 barrels of oil equivalent per day in the fourth quarter, will be included in DNO’s figures following a recently completed merger.
Elsewhere in Kurdistan, Nilsen sees “upside potential” to DNO’s Summail-1 oil and gas discovery on the Dohuk PSC, where further testing is to be carried out as well as additional 3D seismic acquisition.
Source: Upstream Online