DNO ASA has acquired ExxonMobil’s 32% interest in the onshore Baeshiqa license in the Kurdistan region of Iraq, doubling its operated stake to 64% (80% paying interest), pending government approval. DNO plans to continue an exploration and appraisal program on the license while fast tracking early production from existing wells in 2021.
DNO has demonstrated proof of concept of producing through temporary test facilities, having delivered 15,000 bbl of 40° API oil and 22° API oil for export from the Baeshiqa-2 and Zartik-1 wells, respectively.
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 m (2,549 meters TVDSS) Baeshiqa-2 exploration well. Following acid stimulation, the zone flowed variable rates of light oil and sour gas. Two zones flowed naturally at rates averaging over 3,000 b/d of light gravity oil each and another averaged over 1,000 b/d 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 second structure (Zartik) some 15 km southeast of the Baeshiqa-2 discovery well. The 3,021 m (2,322 meters TVDSS) well tested hydrocarbons to surface from several Jurassic zones, with the uppermost zone flowing naturally at rates averaging over 2,000 b/d of medium gravity oil.
DNO currently estimates gross license contingent recoverable resources from three of the tested zones in the two wells ranging from 12 million bbl of oil (1C) to 156 million bbl (3C), with a 2C volume of 43 million bbl.
DNO acquired its first 32% interest from ExxonMobil and assumed operatorship of the Baeshiqa license in 2018.
The 324-sq km license lies 60 km west of Erbil and 20 km east of Mosul. It 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% paying (16% net) interest and the Kurdistan regional government with a 20% carried interest.
