DNO announced on 15 November 2019 the issuance of a notice of discovery to the Kurdistan Regional Government (KRG) of Iraq, regarding the company's second exploration well on the Baeshiqa Block (Zagros Foldbelt). The notice was issued in accordance with the requirements of the Production Sharing Contract (PSC) after the Baeshiqa 2 NFW flowed hydrocarbons to surface from the upper part of the Triassic Kurra Chine B reservoir.<P />The Baeshiqa 2 NFW was spudded in February 2019 and reached a TD of 3,204m (2,549m TVDSS) by July 2019. It was subsequently suspended, with rigless testing understood to have commenced in late August 2019. Following acid stimulation, the upper part of Triassic Kurra Chine B reservoir flowed variable rates of light oil and sour gas. Further testing of this and other Jurassic and Triassic zones is ongoing and will determine the next steps towards appraisal and assessment of commerciality.<P />The well forms part of a three-well, exploration drilling programme on the Baeshiqa Block, which will target two large undrilled structures. The structures are expected to have multiple independent stacked reservoir systems in the Cretaceous, Jurassic and Triassic. Baeshiqa 2 follows the Baeshiqa 1 NFW, which targeted a shallower Cretaceous horizon. It is located on the same structure and targeted deeper Jurassic and Triassic formations. Baeshiqa 1 will be tested once testing on Baeshiqa 2 has been completed. The third well of the campaign, Zartik 1, will be drilled in early 2020 to evaluate a separate structure, with targets also in the Jurassic and Triassic.<P />DNO completed the farm-in to the Baeshiqa licence in April 2018, following government and partner approvals. The company announced on 8 September 2017 that it had signed an agreement with ExxonMobil by which it would join the Baeshiqa exploration licence. DNO assumed operatorship of the licence with a 32% interest, acquiring half of ExxonMobil's original stake. ExxonMobil retained a 32% interest, with the Turkish Energy Co (TEC) and the Kurdistan Regional Government (KRG) holding the remaining 16% and 20% (carried) interest respectively. <P />The Baeshiqa exploration licence (324 sq km) is located around 50 km south of DNO's existing Tawke licence, which is currently producing around 120,000 bo/d. ExxonMobil had previously conducted extensive geological and geophysical studies and constructed a drilling pad, before work was interrupted due to deteriorating security conditions.
Iraq, Baeshiqa