DNO International ASA - March 2010 Production Report

DNO International ASA

 

("DNO" or "the Company")

 

DNO is today reporting first quarter 2010 production and a summary of ongoing drilling and well operations.


PRODUCTION REPORT

DNO reports a working interest (WI) production of 12,442 bopd and a net entitlement (NE) production of 8,225 bopd for the first quarter of 2010.

For March 2010 the WI production was 12,304 bopd and the NE production was 8,217 bopd.

Yemen production

DNO's working interest (WI) production from Yemen in first quarter 2010 was 7,437 bopd and DNO's net entitlement production was 4,889 bopd.

Production from Yemen is reported as follows:

 

(Bopd) Q1 2010 Mar-10 Feb-10 Jan-10 Q4 2009
Gross production 18,963 18,502 18,677 19,682 19,237
DNO's working interest (WI) 7,437 7,213 7,371 7,719 7,655
DNO's net entitlement (NE) 4,889 4,823 4,933 4,914 4,738
Achieved oil price (USD/bbl) 80 81 76 83 76
           

The production figures include crude oil consumed in the operation of the Company's production facilities, at an accumulated WI volume of 253 bopd and NE volume of 164 bopd in first quarter 2010.



Kurdistan production

DNO's working interest (WI) production from Kurdistan in first quarter 2010 was 5,005 bopd and DNO's net entitlement production was 3,337 bopd.

Production from Tawke is reported as follows:

 

 (Bopd) Q1 2010 Mar-10 Feb-10 Jan-10 Q4 2009
Total gross production 5,561 5,657 4,934 6,032 6,584
DNO's working interest (WI) 5,005 5,091 4,440 5,429 5,926
DNO's net entitlement (NE) 3,337 3,394 2,960 3,619 3,959

 

The production figures include crude oil consumed in the operation of the Company's production facilities, at an accumulated WI volume of 137 bopd and NE volume of 91 bopd in first quarter 2010.

The deliveries to the local market are varying from month to month as previously reported. The lower volumes for March were due to 15 days of halt in deliveries during that month.

SUMMARY OF DRILLING AND WELL OPERATIONS

Yemen
Drilling of the Yaalen-3 appraisal well in Block 47 commenced on 24 March. The well is part of the work program to be undertaken in relation to a possible development of the Yaalen & Sharnah oil discoveries in the block. As previously reported the combined gross resource potential of these two oil discoveries is 10 million barrels. A second well on the Sharnah structure is planned in the second quarter. DNO holds a 40 % interest in block 47.

Drilling of the Bayoot-8 basement development well in Block 53 commenced on 26 February. The total depth of the well is expected to be around 3900m, of which 670 meters is planned as a sub horizontal open hole reservoir section in the fractured Basement. Presence of oil  has been observed while drilling at the the top of the basement as predicted. The gross production of the  Bayoot field is now around 6,000 bopd and the plan is to drill another 3 development wells in 2010.

Kurdistan
Great Wall Rig-10 is still novated to Heritage, and based on the latest information the rig is now expected to be returned to DNO end August 2010. The drilling of the Summail-1 exploration, which is a commitment well in the Dohuk license, is therefore expected to commence during September this year.


DNO International ASA
19 April, 2010


This information is subject of the disclosure requirements acc. to ยง5-12 vphl (Norwegian Securities Trading Act)