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November 2011

DNO reports a working interest production of 30,966 bopd in November 2011. DNO’s working interest production 2011 YTD was 39,760 bopd.

Yemen production

DNO's working interest (WI) production from Yemen in November 2011 was 4,388 bopd and the NE production was 2,467 bopd. DNO’s WI production 2011 YTD from Yemen was 5,040 bopd and the NE production was 3,004.

Production in Yemen is reported as follows:

(Bopd)

Nov'11

Okt'11

Q3 '11

YTD '11

Gross production

10,956

9,595

10,913

12,615

DNO’s WI

4,388

3,986

4,439

5,040

DNO’s NE

2,467

2,222

2,661

3,004

Achieved oil price USD/bbl

116

109

111

111

The production figures include crude oil consumed in the operation of the Company’s production facilities at an accumulated WI volume of 266 bopd and NE volume of 143 bopd in November 2011. 

Kurdistan production

DNO's WI production from the Tawke Field in November 2011 was 26,646 bopd. DNO’s WI production 2011 YTD from Kurdistan was 34,720 bopd.

The production figures from Tawke are reported as follows:

(Bopd)

Nov'11

Oct'11

Q3 '11

YTD '11

Gross production

42,798

42,806

52,053

51,636

DNO's WI 1)

26,646

26,649

32,334

35,517

1) The Tawke WI production is estimated to vary between 62% and 64% as described in the 2010 Annual Statement of Reserves.

The gross production from the Tawke field during November was 42,798 bopd. The production level is expected to increase to around 60,000 bopd for December.

Drilling and well operations

Kurdistan Region of Iraq

Erbil PSC: Bastora-1A horizontal test producer

Test production from Bastora-1A is continuing at increasing rates from natural flow. A maximum gross fluid rate of around 1,000 barrels per day has been achieved, of which around 60% is oil and 40% is water. The data and observations from the test production from Bastora-1A serve as important input to the design and locations of future development wells, and the development plan for the Benenan and Bastora oil discoveries has now been submitted to the Kurdistan Regional Government.

Dohuk PSC: Summail-1 exploration well

As previously reported results from the testing operations undertaken in Summail-1 confirm the presence of heavy crude oil in the Jurassic interval and natural gas in the Cretaceous interval.

The gas bearing interval in the Cretaceous flowed at a maximum rate of 11 million scf/d (standard cubic feet per day).

Sustainable rates were not achieved during the tests of the oil bearing Jurassic intervals and the results were therefore not conclusive. DNO will evaluate alternative methods for re-testing these zones at a later stage.

The significance of the oil and gas discoveries in Summail-1 will now be evaluated by DNO and it’s partners, and a 3D seismic acquisition across the entire Summail structure is being considered as part of the 2012 work program. The well has now been suspended for possible re-entry and further testing at a later stage.

Tawke PSC: Peshkhabir-1 exploration well:

The objectives of the Pehkabir-1 exploration are to test the hydrocarbon potential in the Cretaceous, Jurassic and Triassic intervals. The well has now reached the 9 5/8 casing point at the top of the Cretaceous interval, just above the first target zone. Drilling will proceed once the casing has been installed.

Drilling of Tawke-16 is expected to commence shortly and the drilling rig is currently at location undergoing the final rig-up operations. The main objective for this well is to test additional resource potential within the northern flank of the Tawke field.

Yemen

The are currently no drilling operations in Yemen, but work overs in wells to replace down hole pumps in production wells are ongoing.

 

Oslo, 30 December 2011

DNO International ASA

Corporate Communications

DNO International ASA Corporate Communications