(Updates with additional detail)
OSLO (Thomson Financial) - DNO International ASA said its average daily oil production rose to 17,760 barrels per day during February, up from 17,355 bpd the previous month, on growing output from Kurdistan, adding it now expects to produce more than the guided target of 16,000 bpd for the first quarter.
'The accumulated net production to DNO in Feb. 2008 was 0.52 million barrels, equivalent to 17,760 bopd and up 2 percent compared with Jan. 2008,' the Norwegian oil firm said. 'The company (now) expects to deliver a first-quarter production above the guided target of 16,000 bpd.'
During February, a continued rise in output from Kurdistan in Northern Iraq managed to offset lower production from Yemen.
DNO recently announced new production sharing agreements with the Kurdistan Regional Government. It said on Tuesday these new deals came into force on March 14.
'As a result of the reviewed production sharing terms... DNO will receive 60 percent of the Tawke production going forward (net of 10 percent royalty), until the company has received a total cumulative revenue of $290 million,' it said.
DNO has an ambitious drilling campaign planned and said drilling is continuing in both Kurdistan and Yemen. alastair.reed@thomson.com ar/slm/ar/ms1 COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.