DNO's big Tawke oilfield in Iraqi Kurdistan appears to be about 25 percent larger than previously thought, the Norwegian oil firm's chief executive told Reuters on Wednesday.

He estimated that the field's undeveloped northern flank contains about 500 million barrels of oil in place, of which he said 150 to 160 million is likely recoverable.

The Oliefield of Tawke have a current capacity to export more than 70.000 bopd, DNO is planning to increase the production capacity to a level of 100,000 bopd in 2012.

A total of 18 wells are scheduled to be drilled during 2012 in Iraqi Kurdistan. Two wells are currently in progress in Twake with results expected during the first quarter.

In the Erbil license in Kurdistan, the field development plan for the previously announced Benenan and Bastora discoveries was submitted to Kurdistan Region Government in December and approval is expected this month. The first stage of the development plan will commence in the second quarter, including drilling of two horizontal development wells back-to-back.

DNO result in 2011

DNO, the Norwegian oil and gas company, today announced record operational and financial results for 2011 and unveiled the most extensive drilling program in its 40-year history as it accelerated plans for a listing on the London Stock Exchange later this year.

Working interest (WI) production in 2011 more than doubled to 39,966 barrels of oil per day (bopd) versus 17,381 bopd in 2010. WI production in the fourth quarter was 34,656 bopd.

Record high 2011 production resulted in record high operating revenues of NOK 2,070 million in 2011, an increase of 65 percent over the previous year's NOK 1,251 million figure. For the fourth quarter, operating revenues were NOK 905 million.

Net profits for the fourth quarter 2011 hit NOK 203 million, bringing the full year figure to NOK 653 million compared to a loss of NOK 283 million in 2010.

The Company ended the year with a cash position of NOK 1,752 million.

DNO Short term priorities in Iraqi Kurdistan:

• Increase production capacity to 100,000 bopd at the Tawke field
• Commence field development of Benenan/Bastora
  
• Step-up drilling activities