START OF DRILLING IN BLOCK 32 ONSHORE YEMEN

The new seismic acquired in 1998 have now been interpreted and provide improved and encouraging definition of the Tasour structure, which was penetrated by the Tasour 1 well late1997. The Tasour 1 well tested 4.800 bbl oil pr day from this structure.

The work programme for 1999 includes drilling of 3 new wells. The two first wells will be drilled on the Tasour structure with the primary objective to appraise the Tasour 1 discovery. One well will also be testing for oil in deeper reservoir layers.

If this drilling programme proves commercial volumes of oil, a development could commence already in 1999. Oil developments Onshore Yemen should be profitable at oil price below USD 10 pr. bbl.

The Block 32 Partners are:
DNO ASA (Operator - 20 %)
Ansan Wikfs (Hadramaut) Limited (45.19 %)
Norsk Hydro Yemen AS (25 %)
Transglobe Energy Corporation (9.81 %)