DNO increases in Block 43, Yemen

FCP's 10 % interest in Block 43 has now been distributed proportionally to DNO ASA by 6.67 & and Oil Search Ltd by 3.33 % following the failure of FCP to meet its obligation under the PSA (default). The resulting partners and their associated interests in the license are as follows:

 

DNO ASA:                 56.67 % (Operator)

Oil Search Ltd:          28.33 %

TYC:                     15.00  % (carried)

 

Block 43 contains the recent Nabrajah discovery with initial estimated reserves of 10 - 12 million barrels, of which DNO's pre-tax share is 5.7 - 6.8 million barrels.

 

Following the positive results from Nabrajah-1 discovery well reported earlier this year, two appraisal wells will now be drilled commencing within the next few weeks. The forward plan is to work towards a field development plan for submission to the Yemen authorities towards the end of 2004. If the field development starts early 2005 first oil production from Nabrajah could commence in 3rd quarter 2005.