DNO ASA - February Production and Yemen Report

DNO ASA announces the February 2006 production figures, status of drilling and testing activities in Yemen and acquisition of a new license in Yemen.
  • DNO's achieved  an oil production (WI) of 16.929 BOPD in February 06
  • The test performed in the Basement and Kohlan intervals in Nabrajah # 9 failed to flow oil to surface.
  • DNO has secured a 35 % Working Interest and Operatorship in Block 47 in Yemen.
February Production
DNO's oil production in February 2006 increased by 17,4 % compared to February 2005, and the 2006 YTD production increased by 21,4 % compared to YTD 2005.
The oil production net to DNO (WI) from Norway and Yemen was as follows (BOPD):
February 2006
      2006 YTD
The February 2006 production was down by 754 BOPD compared to January. The main reasons for this decline are some well repair work at the Tasour Field in Yemen and a planned shut down at the Glitne Field. These activities extended into March and will also impact the March production. Both Fields are now back on full production.
The Nabrajah Field delivered a stable oil production of > 11.000 BOPD (Gross) in February 2006. Nabrajah # 5, the Basement oil producer, is currently delivering a production of approximately 5.300 BOPD (Gross) under natural flow and zero water cut. Work is currently in progress to increase the capacity of existing wells at Nabrajah by increasing water handling capabilities and installation of gas treatment and injection facilities.
The next two wells on Nabrajah will be drilled in the Nabrajah # 5 fault terrace, and will have the primary objective to increase Basement production.
Yemen Drilling and Testing update
Nabrajah # 9 - Block 43, Yemen:
Nabrajah # 9 was drilled to a total depth of 2418 meters, some 213 meters into the Basement. Two production tests were performed in the well; one in the Basement interval and one in the overlaying Kohlan formation. Both tests failed to produce oil to surface. The well will now be temporarily abandoned and the rig will move to the Nabrajah # 5 fault terrace where the next to wells will be drilled (Nabrajah # 10 and #11).
Four wells have so far been drilled and tested the Basement section within the Nabrajah area. Both Nabrajah # 2 (gas well) and Nabrajah # 5 (oil well) confirmed good productivity from Basement. The two following appraisal wells, Nabrajah # 8 which is located at a fault terrace to the north-east of Nabrajah # 5 and Nabrajah # 9 which is located at a fault terrace to the west of the Nabrajah # 5 have failed to produce hydrocarbons to surface. This is currently being investigated and acquisition of new 3-D seismic will be undertaken in Block 43 later this year.
Tasour # 21 - Block 32, Yemen
After abandoning the testing in Bayoot SW # 1 in Block 53 the rig has been moved to the Tasour # 21 location in Block 32. Tasour # 21 will be drilled as an appraisal well at the Tasour area. The remaining two tests planned in Bayooyt SW # 1 will be undertaken be another rig at a later stage.
After drilling of Tasour # 21 the rig will move to drill the first exploration well in Block 44 located North of Block 32.
Godah # 2
Following the successful test in Godah # 1 ST, which flowed ca. 1.830 BOPD at natural flow, the rig was moved to the Tasour area for some well work. The rig will now be moved to the Godah # 2 location, to appraise the Godah oil discovery. DNO has commenced work to evaluate options to tie back Godah oil production to the Tasour main facilities.
Sharyoof # 20, Block 53, Yemen:
Drilling of Sharyoof # 20, which is the first of 4 infill wells planned at the Sharyoof Field in 2006 commenced on 11 March 2006.
New License in Yemen
DNO has entered into farm-in agreement to acquire a 35 % Participating Interest and Operatorship in Block 47 in Yemen. The concession is located immediately to east of Block 43 and extends to the coast.
Partners in Block 47 are:
DNO:                                                    35 % (Operator)
Oil & Gas Mine Company (OGMC):      35 %
The Yemen Company (TYC);               30 % (12.5 % carried)
Acquisition of seismic is planned within the license in 2006.
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, Northern Iraq and Africa.
Hydrocarbon production is focussed on its operations in Yemen and Norway, with current daily production of ca. 17,000 boepd. The Company has recently commenced production on its Nabrajah concession in the Yemen, which is expected to increase daily output in 2006.
During last twelve months, the Company increased its reserve base by 168 % primarily through exploration and acquisitions. Following one additional oil discovery early in 2006, DNO currently holds proven and probable reserves on Working Interest basis of 101 million barrels of oil..
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, of which 15 as Operator.