DNO Makes Cretaceous Oil Discovery at Peshkabir

Oslo, 9 January 2017 - DNO ASA, the Norwegian oil and gas operator, today announced that the Peshkabir-2 well currently drilling in the Kurdistan region of Iraq has discovered oil in the Cretaceous horizon in the southern flank of the Peshkabir field.

The well flowed at a stable rate of 3,800 barrels of 28° API oil per day on a 52/64 choke from an open hole test of a 170-meter interval. Pressure data supported by observations of oil shows from cuttings and side wall cores indicate a Cretaceous oil interval in excess of 300 meters.

Peshkabir-2 was spudded last October to explore the Cretaceous horizon and appraise the previously tested deeper Jurassic reservoir on a 2012 discovery 18 kilometers to the west of the company's flagship Tawke field. Following acquisition of new 3-D seismic, Peshkabir-2 was originally planned for 2015 but delayed following the drop in world oil prices and interruption in payments for the company's production and exports from Kurdistan.

The well, currently drilling ahead of schedule and under budget, is expected to reach total depth of 3,500 meters and will be completed in the Jurassic by early February. Pre-spud estimates for drilling, open hole testing of the Cretaceous and completion stood at USD 17.5 million.

DNO is considering a number of options to step up appraisal of the new Cretaceous discovery including a geological side-track in the central part of the Peshkabir structure or a third well. Options are also under consideration for possible early Peshkabir production and trucking to the company's gathering, processing and export facilities at Fish Khabur some 12 kilometers away. 

"We are very encouraged by what we have seen so far in this well," said Bijan Mossavar-Rahmani, Executive Chairman of DNO. "Certainly our subsurface and drilling teams have started the year on the right foot," he added.

The company will provide an update on the resource potential of both the Cretaceous and Jurassic horizons following post-well evaluation of all data acquired during Peshkabir-2 operations.

DNO operates and holds a 55 percent working interest in the Tawke license which holds the Peshkabir field. Genel Energy plc and the Kurdistan Regional Government hold a 25 percent and 20 percent interest, respectively.

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DNO ASA is a Norwegian oil and gas operator focused on the Middle East and North Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Yemen, Oman, the United Arab Emirates, Tunisia and Somaliland.

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This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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Source: DNO ASA via Globenewswire