Yemen production
DNO's WI production from Yemen in August 2011 was 4,400 bopd and the NE production was 2,639 bopd.
The production from Yemen is reported as follows:
|
(Bopd)
|
Aug '11
|
Jul '11
|
YTD '11
|
|
Gross production
|
10,868
|
11,723
|
13,513
|
|
DNO’s WI
|
4,400
|
4,739
|
5,362
|
|
DNO’s NE
|
2,639
|
2,762
|
3,222
|
|
Achieved oil price USD/bbl
|
107
|
117
|
110
|
The production figures include crude oil consumed in the operation of the Company’s production facilities at an accumulated WI volume of 249 bopd and NE volume of 141 bopd in August 2011.
The lower production in Yemen is a result of three production wells being temporarily shut down in Block 53 due to ESP pump failures. The operator is currently searching a work over rig for the purpose of replacing the pumps in order to get the wells back on production.
Kurdistan production
DNO's WI production from the Tawke Field in August 2011 was 33,591 bopd.
The production from Tawke is reported as follows:
|
(Bopd)
|
Aug '11
|
Jul '11
|
YTD '11
|
|
Gross production
|
54,119
|
65,330
|
54,668
|
|
Gross Delieveries to
local market 1)
|
1,307
|
1,185
|
4,884
|
|
Gross production export
|
52,812
|
64,145
|
49,784
|
|
DNO’s WI 2)
|
33,591
|
40,553
|
38,250
|
1) The volumes represent primarily diesel produced from crude oil delivered to the Tawke refinery.
2) The Tawke WI production is estimated to vary between 62% and 64% as described in the 2010 Annual Statement of Reserves
The gross production from the Tawke field during August was 54,119 bopd of which 52,812 bopd was delivered for export. Additional third party crude oil was delivered and exported via the DNO operated facilities at Fishkabour at an average rate of 4,513 bopd, bringing the overall exported rate through these facilities to 57,325 bopd in August.
As reported in the July production report, the gross production at Tawke was temporary reduced to around 50,000 bopd during August for reservoir monitoring activities. As a result of this the Tawke production is lower in August compared to previous months.
The oil production allocated for export during September has continued to be set at 50,000 bopd. However, the regularity of the Iraqi-Turkey pipeline has been lower during September due to various technical problems. As a result of this the Tawke gross production in September is expected to be around 37,000 bopd.
As previously reported, DNO has initiated efforts towards crude oil sales to the local market in Kurdistan, a program that had been successfully implemented previously, but terminated when all production was earmarked for export in early February this year.
Going forward DNO expects to deliver at least 5,000 bopd to the local market at a realized oil price of around 50 USD per barrel. The oil price is set based on a recent auction undertaken by the KRG for Tawke crude oil to be delivered to the local market. However the oil price level may be changed subject to market conditions. The revenues from the local sales are expected to be allocated directly to the Company.
Drilling and well operations
Kurdistan Region of Iraq
Erbil PSC: Bastora-1A horizontal test producer
Test production at Bastora-1A recommenced in August. The surface equipment has been modified to optimize the production process. Various alternative methods for artificial lift are currently being assessed before putting the well into long term test production at higher sustainable rates. Produced crude oil has so far been transported to Tawke CPF to be reprocessed and made ready for export. Going forward DNO will also evaluate the feasibility to deliver the crude oil from Bastora-1A to the local market in Kurdistan
Dohuk PSC: Summail-1 Exploration well
The Summail-1 well in the Dohuk license has now reached the total depth and well logging is currently being performed. Oil shows have been observed in several of the target zones in the Cretaceous, Jurassic and Triassic intervals. A comprehensive test program is planned for this well and the testing is expected to commence within the next few weeks.
Tawke PSC: Peshkhabir-1 exploration well:
The drilling of Peshkabir-1 exploration well within the Tawke PSC area commenced on 4 September. After drilling down to around 400 meters it was decided to halt the drilling operations to repair some of the foundations to the rig sub-structure. This is expected to cause a few weeks delays until the drilling operations can resume.
Yemen
There are currently no ongoing drilling operations in Yemen.
Oslo, 29 September 2011
DNO International ASA
Corporate Communications
DNO International ASA Corporate Communications