Tawke # 1 Test Results
The Tawke # 1 discovery well was drilled at the Tawke structure during the spring of 2006. During the initial testing of the well a flow rate of 5,000 bopd from one test in the upper reservoir horizon was achieved. Several tests in the lower reservoir horizons were also undertaken but only minor oil flow rates were achieved due to lack of reservoir treatment materials at the time. The well was suspended in June 2006 pending further testing to be undertaken at a later stage.
The Tawke # 1 discovery well was drilled at the Tawke structure during the spring of 2006. During the initial testing of the well a flow rate of 5,000 bopd from one test in the upper reservoir horizon was achieved. Several tests in the lower reservoir horizons were also undertaken but only minor oil flow rates were achieved due to lack of reservoir treatment materials at the time. The well was suspended in June 2006 pending further testing to be undertaken at a later stage.
The well has now been re-entered with the smaller carrier rig as planned, and the well was deepened passing the initial total depth before the commencement of testing. The well has been testing the lower reservoir horizon applying proven testing techniques (including acid stimulation) as was the case for the Tawke # 3, #5A and # 8 wells. To date the well has delivered a maximum flow rate of 23,000 bopd aggregated from three tests. The tests have also confirmed oil to a deeper level than was observed in the other wells penetrating the lower reservoir horizon, with the depth of the oil/water contact yet to be defined.
Adding the 5,000 bopd flow rate achieved from the upper reservoir brings the total initial maximum flow rate to date from the well to 28,000 bopd aggregated from 4 tests.
Two additional tests will be undertaken in Tawke # 1 before the well is completed as an oil producer. The carrier rig will then finish drilling the lower reservoir horizon in Tawke # 11 and # 12 before testing and completing the wells.
Exploration Activity.
The two larger rigs under operations by DNO have been moved from the Tawke field after drilling Tawke # 11 and # 12 down to the top of the lower reservoir horizon. Both rigs are now drilling exploration wells; One rig is drilling at the Hawler prospect within the Erbil PSA area and the other rig is drilling at the Summail Extension prospect within the Dihok PSA area.
A larger 2-D seismic acquisition program is currently ongoing within the Dihok PSA area in preparation for further exploration drilling. This campaign is expected to be completed during Q2 2008. To date at least 8 additional leads and prospects have been identified within the Dihok and Erbil PSA areas.
Reservoir Information
One of the objectives for commencing test production was to gain additional reservoir information, in addition to confirming well productivity and sustainability of well production levels. The information gathered to date confirms good communication across the field and the wells have so far shown no signs of decline in production. These are encouraging results and provide important and valuable input to improve the understanding of the Tawke reservoir properties.
Several new wells does also provides additional important information to understand better the extent of the Tawke field, and the re-testing of Tawke # 1 confirms a deeper oil column in the lower reservoir horizon compared to the observations in the previous wells.
All this new information will be incorporated in the Tawke reservoir model and the Company expect to have updated reserve figures to be reported to the market at around mid-December.
Tawke Facilities
Another important milestone in the Tawke development project has now been reached with the final testing and commissioning of the Central Processing Facilities (CPF). Although the test production is currently being delivered directly from the well site, the CPF is now ready to receive and process oil when required.
Installation of equipment and preparatory work at the tie-in location for the Tawke 12" export pipeline is progressing in line with the overall project plan, but final completion of this work is subject to receiving the necessary permits for tie-in and export.
The total processing capacity of the Tawke facilities is 50,000 bopd. With the cumulative initial maximum well capacity of the field significantly above this level the full capacity of the Tawke facilities can be exported when the necessary approvals are in place and the tie-in work is completed.
Helge Eide, President and Managing Director comments:
"The Tawke field continues to deliver positive and encouraging results. A total initial field production capacity of 90,000 bopd from 8 wells exceeds management expectations. The results to date confirm the high quality of the Tawke field which could also set the standard for the potential within the whole region."
"It is now two years since we put the drill bit in the ground for the first time in Kurdistan. This resulted in the Tawke # 1 discovery well followed by the Tawke full field development. Our achievements in this project demonstrate the Company's ability to undertake fast track exploration, development and production operations also in frontier areas."
"The cooperation and excellent support from the Kurdistan Regional Government has been key to our successes in this project"
DNO ASA
30 November 2007
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Contact:
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Media: |
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Helge Eide, MD DNO ASA |
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+47 23 23 84 80 |
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Ketil Jørgensen, Crux Communication (Norway) |
Telephone |
+47 930 36 866 |
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Ben Willey, Buchanan Communications (UK) |
Telephone:
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+44 207 466 5000 |
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Investor Relations: |
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Haakon Sandborg, CFO DNO ASA |
Telephone: |
+47 23 23 84 80 |
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Robert Arnott, Advisor (UK) |
Telephone |
+44 207 839 7764 |