DNO ASA: Completion of Jaguar Well

DNO ASA announces that DNO UK Ltd, its wholly owned subsidiary, has completed the drilling and final logging of Northern North Sea well 211/22b-5, located on the Jaguar prospect on the United Kingdom Continental Shelf.
Following the Company's announcement of 28 February 2006 providing negative information on the Upper Jurassic target, the well was drilled to a total depth of 13,050 feet (3,977 metres) by the Bredford Dolphin drilling rig.
Oil shows were observed over a 55 ft (17m) interval within the Middle Jurassic formations. However, obtaining representative fluid samples proved difficult due to low permeability. Consequently the well is now being plugged and abandoned.
Although the well has failed to intersect commercial volumes of hydrocarbons at this location, the results prove that a working hydrocarbon system exists in the licence. An extensive technical evaluation program will now be conducted to assess the remaining prospectivity in the Middle Jurassic at more favourable locations in the licence area as well as assessing the possibility of alternative locations of reservoir sands in the Upper Jurassic level.
As previously announced, DNO retained a 50% working interest on the Jaguar prospect, contributing to 77.1% of the total well cost.  DNO's partners on the well were Rocksource ASA and Elixir Petroleum plc, with the following interests:
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.
Formed in 1971, 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 xx,000 boepd. The Company has recently commenced production on its Nabrajah concession in Yemen, which will increase daily output in 2006.
During 2005, the Company increased its reserve base by 168%, primarily through exploration and development, with current proven and probable reserves being 105 mmboe.
The Company's exploration activities cross all of its areas of interest with 16 exploration wells completed in 2005. During 2006, the Company plan to drill 22 exploration wells, which is anticipated will materially add to the Company's reserve base.