Norway’s DNO announced the acquisition of ExxonMobil’s 32 per cent interest in the Baeshiqa license in the Kurdistan region of Iraq.
The deal doubles DNO’s operated stake to 64 percent (80 percent paying interest), pending government approval. The Company plans to continue an exploration and appraisal programme on the license while fast tracking 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 and 22o API oil for export from the Baeshiqa-2 and Zartik-1 wells, respectively.
The Company currently estimates gross license contingent recoverable resources from three of the tested zones in the two wells ranging from 12 million barrels of oil (mmbbls) (1C) to 156 mmbbls (3C), with a 2C volume of 43 mmbbls.
"By increasing our stake in the Baeshiqa license now, we demonstrate our belief in its ultimate potential,” said Bijan Mossavar-Rahmani, DNO's Executive Chairman. “Following the stabilization of oil prices and export payments in Kurdistan, DNO is stepping up spending on new opportunities,” he added.
DNO acquired its first 32 percent interest from ExxonMobil and assumed operatorship of the Baeshiqa license in 2018.
The 324 square kilometer license is situated 60 kilometers west of Erbil and 20 kilometers east of Mosul. The license contains two large structures, Baeshiqa and Zartik, which have multiple independent stacked target reservoir systems, including in the Cretaceous, Jurassic and Triassic. The remaining partners in the license include TEC with a 20 per cent paying (16 percent net) interest and the Kurdistan Regional Government with a 20 per cent carried interest.