DNO ASA - Q1 2006 Production and Middle East Drilling Update

The March 2006 production was down by 859BOPD 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