3rd Quarter Production and Yemen drilling Update

The oil production net to DNO from Norway and Yemen were as follows (BOPD):
 
 
                 September        3rd  Quarter         YTD
                                                                     (9 months)   
 
Norway            602               1.171                 1.473                   
Yemen         14.224             13.514                12.553
 
Total           14.826             14.685                14.026
 
 
The September production was effected by lower production from the Glitne Field caused by the planned shut-down for maintenance purposes as well as some gas compressor down-time. The Glitne Field is now back on stream at ca. 15.000 BOPD (1.500 BOPD net to DNO). Nabrajah gross production in September increased to 4.760 BOPD (3.085 net to DNO). The September gross production from Tasour was 12.556 BOPD (4.996 BOPD net to DNO) and from Sharyoof 19.353 BOPD (6.143 net to DNO). DNO's net production from Yemen increased by ca. 550 BOPD compared to August.
 
Nabrajah Development Update:
 
The increase in gross field capacity on Nabrajah from 5 000 BOPD to 15 000 BOPD was completed at the end of September. Nabrajah is currently producing ca. 7.500 BOPD BOPD (gross) from 4 Qishn wells. As one of the Qishn producers is producing higher gas volumes than expected the full production capacity from Qishn, including the fifth well, can not be achieved until the gas handling capacity is expanded. Work is currently being undertaken to increase intermediate gas handling capacity, in order to allow for more oil production from Qishn as well as early production start-up from the Nabrajah # 5 (Basement). As previously reported more substantial contribution from Basement production is expected from mid December, after the gas injection facilities are installed.
As the Tasour gross production is currently running at ca. 12.500 BOPD there are now ca. 12.500 BOPD export capacity available for Nabrajah.

Yemen Drilling Update:
 
 
Block 43 / Nabrajah
 
Following the installation of the 9-5/8 casing Nabrajah # 8 has now reached a depth of 2306 meters in a 8-1/2 inch hole.
 
Whilst drilling the upper section of the Basement between 2,124 to 2,145 metres oil and gas shows were recorded. The significance of these shows will be evaluated during the programmed wireline logging and well testing programs, which will commence once the well reaches TD.
 
Nabrajah-8 is the first well in the Nabrajah Basement appraisal/development programme.  The Nabrajah-8 well is located 1.6 kilometres east-north-east of Nabrajah-5 and will be drilled as a near vertical well. The objectives of the well are firstly, to delineate the height and lateral extent of the oil column encountered by Nabrajah-5 by drilling up to ca. 1,000 metres into the Basement formation, and secondly, to provide data on the lateral and vertical characteristics of the Basement fracture system.
 
 
Block 32
 
The Balan #1 exploration well commenced drilling on October 1st.  The well is located approximately 20 kilometers North of the Tasour field.  Balan #1 will test for three potential oil accumulations, the Qishn sandstone, the Saar carbonates and the fractured basement.  The well is expected to be finished drilling by mid November.
 
A second rig is planned to start drilling on another exploration well close to the Block 14 North Hemiar minor oil and gas discoveries by the end of November. The North Hemiar wells are  located east of the Tasour field and the planned well will test for a potential oil accumulation in the Qishn sandstones.