Following completion of wells Tasour #25 and Raoq #1 in January, rig operations have been temporarily suspended in Yemen. Drilling plans going forward are being assessed by DNO and the license partners.
DNO's WI production from Yemen in January was 8,140 bopd, up 5 % compared to the December 2008. The lower WI production in February was due to maintenance work and work-over of wells. The YTD production to DNO from Yemen is in line with management expectations.
DNO's oil production from Yemen is reported as follows:
The production figures (WI and NE) include crude oil consumed in the operation of the Company's production s facilities, at an accumulated volume of 273 bopd during January 2008 and 303 bopd during February.
DNO's revenue entitlement from the Tawke test production
The revenue entitlement from Tawke test production is reported as follows:
The 2009 YTD test production from Tawke has been lower than the previous months. As have been seen from the past experience, the Tawke test production volumes show significant variations, which is also expected going forward.
During the fourth quarter presentation DNO reported that the work to connect the Tawke production to the northern pipeline system in Iraq was nearing completion. This work has now been completed, but the Company has currently no new information with respect to commencement of delivery of Tawke oil into the northern pipeline system. However with reference to recent statements from KRG quoted in the media, this could happen during the coming months.
DNO International ASA
24 March, 2009