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Norwegian DNO bought ExxonMobil's 32% stake in Baeshiqa license in Kurdistan

The company did not say how much it had paid to acquire Exxon’s interest. It is worth noting that DNO acquired the first 32% from ExxonMobil in 2018.

Erbil, February 12 - Neftegaz.RU. Norwegian oil & gas operator DNO has bought out ExxonMobil’s 32% stake in the Baeshiqa licence, increasing the company’s stake to 64%.
The other licence partners are TEC on a 16% net interest and the Kurdistan Regional Government (KRG) with a 20% carried interest.
DNO acquired its first 32 % interest from ExxonMobil and assumed operatorship of the Baeshiqa license in 2018.
DNO said it plans to continue with an exploration and appraisal drilling programme on the block and is aiming for fast-track early production from existing wells in 2021.
DNO has already demonstrated proof of concept of producing through temporary test facilities, having delivered 15,000 barrels of 40o API oil for export from the Baeshiqa-2 wells and and 22o API oil - from Zartik-1.

In November 2019 DNO issued a notice of discovery on the Baeshiqa license after flowing hydrocarbons from several Jurassic and Triassic zones to surface in the 3,204 meters Baeshiqa-2 exploration well.
Following acid stimulation, the zone flowed variable rates of light oil and sour gas.
2 zones flowed naturally at rates averaging over 3,000 barrels of oil per day (bopd) of light gravity oil each and another averaged over 1,000 bopd also of light gravity oil.
Subsequent analyses on surface samples collected during testing confirm that the Triassic reservoirs contain saturated oil with a gas cap.

An exploration well was completed in 2020 on a 2nd structure (Zartik) some 15 kilometers southeast of the Baeshiqa-2 discovery well.
The 3,021 meters well tested hydrocarbons to surface from several Jurassic zones, with the uppermost zone flowing naturally at rates averaging over 2,000 bopd of medium gravity oil.

The Company currently estimates gross license contingent recoverable resources from 3 of the tested zones in the 2 wells ranging from 12 million barrels of oil (mmbbls) (1C) to 156 mmbbls (3C), with a 2C volume of 43 mmbbls.

Bijan Mossavar-Rahmani, DNO's executive chairman said:
  • By increasing our stake in the Baeshiqa license now, we demonstrate our belief in its ultimate potential
  • Following the stabilization of oil prices and export payments in Kurdistan, DNO is stepping up spending on new opportunities
The Baeshiqa license contains 2 large, undrilled structures, which are expected to have multiple independent stacked target reservoir systems, including in the Cretaceous, Jurassic and Triassic.
The licence covers 324 sq. km.
It is around 60 km west of Erbil and 20 km east of Mosul.

DNO

DNO is the most active driller among the international operators in Kurdistan.
It holds a license:
  • for Tawke & Peshkabir fields which together produce over 110,000 barrels of oil per day (bopd);
  • for the Benenan & Bastora heavy oilfields, which are undergoing further appraisal and development.
The delay in receipt of entitlement payments from the KRG for November 2019 to February 2020 (USD 212 million) and override payments from November 2019 through June 2020 (USD 28 million) has contributed to DNO’s reduced activity levels in Iraq's Kurdistan.
The company probably managed to agree with the KRG on acceptable terms and conditions for these payments.

Despite these challenges, DNO achieved oil and gas output of 108,586 barrels of oil equivalent per day (boepd) in the 1st half of 2020 on a gross operated basis.
DNO's production in the 1st half of 2020 averaged 94,767 boepd.

Founded in 1971 and listed on the Oslo Børs, DNO is a Norwegian oil and gas operator focused on the Middle East and North Sea regions.
DNO also holds stakes in onshore and 116 offshore licenses at various stages of exploration, development and production, with 3 in Kurdistan, 97 in Norway, 12 in the United Kingdom, 2 in the Netherlands, 1 in Ireland and 1 in Yemen.


Source : Neftegaz.RU


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