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DNO waits on Tawke export nod

Norwegian player DNO International said it would inform the financial markets once it has been granted an Iraqi export licence, adding the permit has not yet come through.

DNO's shares surged more than 54% this morning after a report from Dow Jones newswires, citing sources, said Iraq's government was about to issue a long-awaited export licence.

"When we receive information of that character we will of course notify the market," DNO boss Helge Eide told Reuters.

He said test production at the Tawke oilfield was continuing, which was part of the preparation for exporting.

Up to now DNO has sold the Tawke oil on the domestic market, which is less lucrative than exporting it.

"We have said that we have have a licence to finish all work towards preparing for exports," Eide said. "The last information is that we are finishing the technical work towards exports."

He declined to say how quickly DNO would be ready to export oil once it gets a licence.

Shares in DNO were briefly suspended on the Oslo bourse after they leapt as much as 43%. They extended gains after the suspension climbing to Nkr5.69 ($0.93) before easing to Nkr5.29 - still up 42.3%.

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