DNO International ASA - October 2009 Production Report

DNO is today reporting October 2009 production. DNO's working interest production was 12,712 bopd in October 2009 and DNO's net entitlement production was 7,961 bopd.
 
 
PRODUCTION REPORT
 
Yemen production
 
DNO's working interest (WI) production from Yemen in October 2009 was 7,677 bopd and DNO's net entitlement production was 4,604 bopd. Average realized oil price in October was 74 USD/bbl.
 
As previously reported the decline of oil production from the Yemen fields is leveling out due to well optimization work and effect of infill wells. The production rate from the Bayoot area in block 53 is still increasing after the installation of down-hole pumps and the gross production from Bayoot in October 2009 was 4,654 bopd.
 
Production from Yemen is reported as follows:
 
The production figures include crude oil consumed in the operation of the Company's production facilities, at an accumulated volume of 263 bopd in October 2009.
 
Iraq production
 
DNO's working interest (WI) production from Kurdistan in October 2009 was 5,036 bopd and DNO's net entitlement production was 3,357 bopd.
 
Production from Tawke is reported as follows:
 
 
The operation of the Company's production facilities did not consume any crude oil in October 2009.
 
As previously reported DNO will now focus on local sales until a future payment mechanism for crude exports is in place. Since export halted 22 September all the production from Tawke is delivered to the domestic market.
 
SUMMARY OF DRILLING ACTIVITIES
 
The Tasour-26 infill well was brought on-stream in November and the well is currently producing 700 bopd (gross), as expected.
 
The planned sidetrack of Nabrajah-10 commenced in 21 November. The well is targeting the Jurassic Shuqra formation dolomite, already proved oil producing in the well Nabrajah-5.
 
Drilling of the Bayoot development well, Bayoot-7 commenced on 3 September. The drilling operations have been somewhat delayed due to drilling problems. The well has proved oil shows and gas reading at the top of basement, as expected. The well will be drilling a 900 m section in the basement reservoir.
 
There are currently no drilling activities in Kurdistan.
 
DNO International ASA
4 December, 2009