DNO ASA - Q1 2006 Production and Middle East Drilling Update

DNO ASA is pleased to announce the Q1 2006 production figures and status of Middle East drilling activities.
Q1 2006 Production
DNO achieved an oil production (WI) of 16892 BOPD in Q1 which is an increase by 20 % compared to Q1  2005.
The oil production net to DNO (WI) from Norway and Yemen was as follows (BOPD):
March 2006
      Q1 2006
The March 2006 production was down by 859 BOPD compared to February which was caused by the continuation of some well repair work at the Tasour Field in Yemen and a planned shut down at the Glitne Field which commenced in February. 
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 Update
Nabrajah # 10 - Block 43, Yemen:
Nabrajah # 10 has now reached a depth of 1834 meters. The well is the first of two wells to be drilled back-to-back in the Nabrajah # 5 fault terrace.
DNO has previously reported that gross ultimate proven plus probable reserves combined from Qishn and Basement are estimated by the Company at 68 million barrels. Reserve estimates undertaken by independent engineers on behalf of DNO do not deviate materially from these figures applying a recovery factor of 35 % for Basement. DNO is planning to perform a review and update of the Nabrajah reserves later this year. Such update will incorporate the results from Nabrajah # 10 and 11 as well as additional production history from both Qishn and Basement.
Tasour # 21 - Block 32, Yemen
Tasour # 21 has now reached a depth of 1991 meters. The well is an appraisal well located at the south-east edge of the Tasour Field .
Godah # 2
Godah # 2 has now reached a depth of 1752 meters. The main objective of Godah # 2 is  to appraise the Godah oil discovery confirmed by Godah # 1 ST which flowed ca. 1.830 BOPD at natural flow.
Sharyoof # 20, Block 53, Yemen:
Sharyoof # 20 has reaced a depth of 2250 meters. The well is the first of 4 infill wells planned at the Sharyoof Field in 2006. Sharyoof # 20 will also be drilled to the Basement at this location.
Northern Iraq Drilling Update
Tawke # 1, Iraqi Kurdistan
As reported in the Stock Exchange Notice on 10 April 2006, interpretations of wire line logs and other well data show the presence of oil in five reservoir intervals. As a result of this it has been decided to perform several well tests in Tawke # 1, with the objectives of evaluating the production capacity of the individual reservoir intervals and to determine the characteristics of oil. The preparation of the testing program is progressing well and the first test is expected to commence during the next week.