DNO's working interest (WI) production from Yemen in May 2009 was 7,856 bopd. DNO's net entitlement production from Yemen in May 2009 was 5,794 bopd and average realized oil price was USD 59/bbl.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 267 bopd in May 2009 and 289 bopd YTD 2009.
DNO's revenue entitlement from the Tawke test production
The revenue entitlement from Tawke test production is reported as follows:
The May revenue entitlement from the Tawke test production has been in line with the first quarter figures.
As previously reported, DNO completed in May all outstanding work and undertook all necessary preparations and commissioning of the Tawke facilities, after which export of crude oil from the Tawke field commenced on 1st June 2009.
The first stage of the Tawke development has been designed to deliver 50,000 bopd and DNO is now for the first time in a position to test the full capacity of the facilities. Fine-tuning and adjustments of the facilities will be undertaken as required during the initial run-in period. The plan is to establish a stable export rate at full capacity as quickly as possible in a safe and prudent manner, in close cooperation with the operator of the tie-in facilities and Iraq Turkey pipeline.
The June production figures due to be reported in July will include both Tawke export volumes and local sales volumes.
DNO International ASA
22 June, 2009