DNO ASA - Yemen drilling update

DNO is carrying out an extensive drilling program in Yemen in 2007 through planned drilling of 22 wells, consisting of 13 exploration wells and 9 appraisal wells.
 
The status of ongoing drilling operations is as follows:
 
Appraisal and Development Wells
 
 
Sharyoof - Block 53 (24.45%)
 
Sharyoof # 20, which was drilled in 2006, was originally completed as a Qishn S1C sandstone producer, but was shut down after a short while due to high water production. The well has now been re-completed and the shallower S1A sandstone interval has been brought on stream at an initial gross oil rate of  2,400 bopd. This is another successful operation adding production from the Sharyoof Field following the completion of the two recent infill wells Sharyoof # 23 and # 24, which were brought on stream in November 06 and February 07 respectively.
 
Drilling of Sharyoof # 26 is expected to commence shortly, and the well is planned as an infill/appraisal well at within the Sharyoof Field area.
 
Nabrajah - Block 43 (56.67%)
 
Following the interpretation of the new 3-D seismic acquired across the Nabrajah Field during second half of 2006, drilling resumed at the Field earlier this year. There are currently two drilling rigs operating at the Nabrajah Field.
 
Nabrajah # 14 commenced drilling on 26 April and is the second Qishn appraisal well which is based on the new 3-D seismic interpretation.
 
Drilling of Nabrajah # 13 commenced on 29 March and is targeting a new play concept within the Nabrajah area.
 
There are several additional Qishn prospects identified from the new 3-D seismic which will be drilled later this year. Contingent on the results from Nabrajah # 13, additional deeper targets may also be drilled. Following the completion of Nabrajah # 14, the plan is to fully utilize one rig in Block 43 for the remainder of the year.
 
Godah - Block 32 (38.95 %)
 
In Block 32 the joint venture group has secured an additional drilling rig for two slots back-to-back as part of the additional development drilling on the Godah field.   Drilling of Godah #5 commenced on 11 April and will follow on with Godah #6 utilizing this rig. Godah #7 is planned to be drilled with another rig, and is expected to start beginning of June.
 
Exploration drilling
 
 
Block 44 (65.10 %)
 
Drilling of the Ardah #1 exploration well has been completed by DNO as Operator. The well penetrated both Qishn Formation as well as deeper targets without encountering hydrocarbons.
 
DNO has to date completed 4 of the 13 wells planned under the 2007 exploration program in Yemen. According to the current plan the remaining 9 exploration wells are expected to be drilled as follows:
 
Block 32:         3 wells
Block 43:         1 well
Block 44:         2 wells
Block 47:         1 well
Block 53:         2 wells
 
  
DNO ASA
4 May 2007
 
 
 

Notes to the Editor:
 
DNO ASA is an independent exploration and production company with activities in Norway, Middle East and Africa.
 
The Company has P50 reserves and resources of 151mmboe and produces approximately 12,500  boe per day. The oil production to the Company is planned to be increased to approximately 26,000 bopd by year end.
 
DNO has been operating in Yemen since 1998 and is currently holding 7 licenses, of which three in production.  In 2007 the Company plans to drill 22 wells in Yemen of which 17 as Operator.
  
DNO is quoted on the Oslo Stock Exchange, ticker DNO, and is currently capitalised at approximately NOK 10 billion.