DNO ASA - Update on Tawke Field Development in the Kurdistan Region of Northern Iraq

As previously reported DNO has installed facilities for trucking oil from the Tawke Field.
Two of the wells, Tawke #1A and Tawke # 4, are currently undergoing long-term production tests. The purpose of the long-term tests is to gain additional reservoir information, as well as to confirm productivity and sustainability of production levels in preparation for finalizing export sales agreements under the guidance of the Kurdistan Regional Government (KRG). The crude oil is being delivered to the local market by trucking during the long term testing, which also serves to avoid any environmental damages during test production.
The Central Production Facility (CPF) is nearing completion, and remaining testing and commissioning work of the CPF is ongoing.
Two drilling rigs are operating on the Tawke Field for production and appraisal drilling, and both rigs are currently drilling wells targeting the deeper reservoir levels at a more central location of the field (Tawke # 5A and Tawke # 8). As previously reported both Tawke # 1 and Tawke # 3 confirmed oil in these deeper reservoirs and Tawke # 3 has now been completed as a future oil producer. Prior to completion of Tawke # 3 a new flow test was undertaken confirming an aggregate test production capacity from the deeper oil filled reservoirs of approximately 9,000 bopd (7,000 bopd reported from first tests).
A third smaller carrier rig has also been procured for drilling shallow Tawke wells and for performing testing and work-overs of wells. This rig is expected to be operational by the end of July.
The Tawke Field is within the Dihok PSA area and DNO holds a 55% working interest in this Production Sharing Agreement.
21 June 2007