DNO ASA - Jaguar well - Update

DNO ASA (DNO.NO), the Norwegian based Exploration and Production Company, with operations focussed on the United Kingdom, Norway and the Middle East, is pleased to announce that well 211/22b-5, located on the Jaguar prospect on the UKCS was spudded on 23 January 2006.
 
The planned total depth of the well is circa 4,000m, and drilling is expected to last approximately 45 days, assuming no downtime. The well will be drilled using the semi-submersible rig Bredford Dolphin.
 
The Jaguar prospect is a stratigraphic trap located in the Northern North Sea Block 211/22b (Licence P1067) to the northeast of the Cormorant North oil field.  The unrisked resource potential of the Jaguar prospect is estimated at 138 million barrels ( 69 million barrels net to DNO), assuming exploration and commercial success.
 
Under a farm-in agreement signed in July 2005, DNO UK Limited ("DNOUK"), a 100% subsidiary of DNO, agreed to secure a 60% working interest in Block 211/22b from Elixir Petroleum Ltd. ("Elixir") by contributing 92.5% of the Jaguar well costs. Elixir retains a 40% interest and will contribute the remaining 7.5% of the well costs.
 
In a subsequent earn-in agreement announced on 30 November 2005, DNO UK will transfer a 10% interest in Licence P1067 to Rocksource ASA ("Rocksource"), a Norwegian E & P Company specializing in front edge exploration technology, in return for Rocksource funding 15.42% of the well costs.
 
Commenting on drilling the Jaguar prospect, Helge Eide, Managing Director of DNO said:
 
"DNO is pleased to be back as an Operator on the UKCS. The Jaguar prospect is a new and exciting exploration play in the North Sea holding a substantial hydrocarbon potential. Drilling the Jaguar prospect forms a part of our extensive 2006 exploration program, where our continued focus and efforts will be to transform potential resources to reserves at low costs."
 
For further information please contact:
 
 
Website : www.dno.no
 
Notes to the Editors:
 
DNO ASA is an oil and gas exploration and production company based in Oslo, Norway.
 
The company has a diversified, risk balanced portfolio with interests in Norway, UK, Yemen and Iraq.
 
Hydrocarbon production is focussed on its operations in Yemen and Norway, with current daily production of 18,000 boepd. The Company has recently commenced production on its Nabrajah concession in the Yemen, which will increase daily output in 2006.
 
During 2005, the Company increased its reserve base by more than 150 % primarily through exploration and acquisitions.  Following one additional oil discovery early in 2006, DNO currently holds proven and probable reserves of more than 100 mmboe.
 
In 2006 the Company will increase its exploration activities across all of its core areas of interests , and DNO plans to participate in 22 exploration wells throughout the year.