Oil was discovered in the Cretaceous horizon in the Peshkabir field located in the Tawke license.

The company said that the well flowed at a stable rate of 3,800 barrels of 28° API oil per day on a 52/64 choke from an open hole test of a 170-meter interval.

Spudded in October 2016, the Peshkabir-2 was intended to explore the Cretaceous horizon as well as to appraise the previously tested deeper Jurassic reservoir on a 2012 discovery 18km to the west of the company's Tawke field.

DNO noted that the pressure data, which is supported by observations of oil shows from cuttings and side wall cores, indicate a Cretaceous oil interval in excess of 300m.

The firm initially planned to drill the Peshkabir-2 in 2015 following acquisition of new 3-D seismic. The work was delayed due to issues including a decline in world oil prices.

The well, which is currently drilling ahead of schedule, is expected to reach a total depth of 3,500m and is planned to be completed in the Jurassic by early February 2017.  

For the new Cretaceous discovery, DNO is considering a number of options to step up appraisal including a geological side-track in the central part of the Peshkabir structure or a third well.

DNO executive chairman Bijan Mossavar-Rahmani said: "Certainly our subsurface and drilling teams have started the year on the right foot.”

DNO operates the Tawke license with 55% interest. Genel Energy and the Kurdistan Regional Government hold a 25% and 20% interest respectively in the license.