DNO ASA - Middle-East Exploration Drilling Update

 

Following the intermediate production test which was undertaken in the upper 470 meters of the Basement flowing gas and slugs with oil, the well was drilled down to a total depth of 2950 meters. Thereafter wire line logs have been run and a 7" liner was installed down to 2301 meters. The purpose of the liner is to plug off the upper section which was flowing gas.

 

A production test of the Basement interval 2301 - 2950 meters using an Electrical Submersible Pump (ESP) will now be undertaken. Contingent on the results from the test, a side-track of the well will be considered.

 

Nabrajah # 9 is the second well in the first phase of the Nabrajah Basement appraisal/development program. The well is located 2.7 kilometers north west of Nabrajah # 5 and is being drilled as a deviated well.  Nabrajah # 5 which was initially testing 5.800 BOPD with an ESP has delivered a stable gross oil production of 4.500 BOPD without ESP since the well was brought permanently on stream early December 2005. Artificial lift using gas will be installed in Nabrajah # 5 during 1st Quarter 2006 which could bring the oil flow from the well up to the initial test production level.

 

 

The Godah # 1 exploration well has been drilled at a separate structure ca. 14 km east of the Tasour Field. The main target is the Qishn S1A sandstone and the well has now reached a total depth of 1.712 meters. Interpretation of wire line logs, pressure data and fluid samples confirm the presence of oil and gas in the Qishn reservoir. The well will now be side-tracked down-dip of the current location with the objective to penetrate a full oil bearing Qishn S1A section. Based on the outcome of the side-track, a production test will be considered. Should a test confirm the well to flow oil at commercial rates, the well will be tied back to the Tasour main CPF facilities, resulting in increased production and reserves within Block 32.

 

 

 

The exploration well Bayoot South West # 1 is drilling at a prospect some 9 km south of the Sharyoof Field. The main target is Basement but the well will also penetrate prospective carbonates above. The well has now reached a depth of 2.924 meters, which is at the top of Basement. 9 5/8 casing will now be installed and the plan is to continue drilling the Basement section down to a total depth of ca. 3.380 meters. If commercial volumes of oil are confirmed at this location, production could be tied back to the Sharyoof main CPF facilities.

 

 

 

 

Tawke # 1 was spudded on 28th November 2005. Following the influx of oil under pressure at the top of the first prospective reservoir interval at approximately 350 meters (reported on 22 December 2005) the casing program for the well was revised, which has caused some delay in the drilling progress.  It was decided to install a 13 3/8 "casing down to 379 meters, before drilling down to 1.112 meters. At this depth, wire line logs were run and a 9 5/8 "casing was installed down to 1.110 meters.

 

This morning the well is drilling at 1.550 meters and the intention is still to drill down to approximately 3.000 meters as originally planned. It should be noted that the plan for the well may be revised based on observations during drilling.

 

Tawke # 1 is an exploration well drilled in a region with limited reference data. The primary objective of the well is to acquire relevant data and information in order to fully evaluate the prospect. Interpretation of wire line logs will be undertaken incorporating the maximum of such data, and conclusions are unlikely to be reached until after the well has reached the total depth. Further plans, including possible testing are contingent on these conclusions.

 

 

For further information please contact:

 

 

 

 

 

Website : www.dno.no

 

 

 

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 and Northern Iraq.

 

Hydrocarbon production is focussed on its operations in Yemen and Norway, with current daily production of 18,000 boepd. The Company has recently commenced production on its Nabrajah concession in the Yemen, which will increase daily output in 2006.

 

During 2005, the Company increased its reserve base by more than 150 % primarily through exploration and acquisitions. Following one additional oil discovery early in 2006, DNO currently holds proven and probable reserves of more than 100 million boe.

 

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.