DNO ASA - More oil in Tasour field

DNO as operator completed two wells on the western extension of Tasour field in 2003. Based on the positive production development, especially from the last well, and improved understanding of the field's extension through interpretation of seismic data, oil reserves have now been further upgraded by approx. 10 million barrels. The field's oil reserves were also upgraded in 2002, based on positive drilling results in the main field.
When the field came onstream in November 2000, total oil reserves were estimated at about 8 million barrels, of which DNO's share amounted to approx. 3.3 million barrels (before tax). Three years later, the field has produced almost 13 million barrels of oil, of which DNO's share is close to 5 million barrels (before tax). After this most recent reserve revision, remaining oil reserves in Tasour field at the end of the third quarter of 2003 are about 17 million barrels, with DNO's share amounting to some 7 million barrels (before tax).
DNO and the partners in the licence are planning a 3-D seismic survey of the entire Tasour area in 2004, which will be the first undertaken. The company believes that there is a potential for additional oil reserves in the area, including on the eastern flank, where a possible field extension analogous to the western extension has been identified.
The Sharyoof field has also developed more favourably than expected since it came onstream in December 2001. Production from the field is now past plateau, and a new well has been spudded in the field, scheduled to come onstream in December 2003. Installation of high-capacity downhole pumps to increase production from existing wells (similar to those installed at Tasour field with good results) is being considered. Two new wells may be drilled in Sharyoof field in 2004.
19 November 2003
For further information, please contact:
Helge Eide
Group Managing Director
Telephone: (47) 23 23 84 80 / (47) 55 22 47 00