Oslo, 5 July 2012 -- DNO International ASA, the Norwegian oil and gas company, today provides a drilling and operations update on its activities in the Kurdistan Region of Iraq and Yemen as follows:
Kurdistan Region of Iraq:
DNO International has completed testing of the Peshkabir-1 well and is preparing to submit a discovery notice pursuant to the terms of the production sharing contract covering the Tawke license.
Drilled to a total depth of 4,092 meters, the deepest yet for the Company in Iraq, the well targeted a large undrilled feature west of the currently producing Tawke field. Oil shows were encountered in the Cretaceous, Jurassic and Triassic intervals and six zones were tested. The Jurassic Sargelu formation tested 27-29 API oil and water at varying rates of oil and water cut. The Triassic Kura Chine A and B intervals and the Cretaceous Mushora, Quamchuqa and Shiranish intervals produced formation water.
The joint venture will now undertake detailed evaluation of the results of the well; a proposal to acquire approximately 200 square kilometres of 3-D seismic has already been submitted and approved by the authorities. The Peshkabir-1 well will be temporarily suspended for possible re-entry later this year and the drilling rig moved to the Erbil license to commence the Benenan and Bastora field development.
The first of two back-to-back wells, Benenan-3, is expected to spud in late July.
The Tawke-18 well, spud on 28 May, is drilling ahead at 1,462 meters, about halfway to the planned total depth of 3,085 meters. The well is designed for additional Cretaceous production towards the target 100,000 barrels per day yearend Tawke field deliverability. The well will also test an exploration target below the main field bounding fault.
In parallel with its stepped up operational activities in the Kurdistan Region of Iraq, the Company continues to ramp up production and sales of oil to the local market.
DNO International has resumed active drilling operations in Yemen following the return to the country of service contractors and rig personnel.
On Block 32, the Tasour-27 well, the first in a new drilling campaign to be undertaken by DNO International, was spud on 2 July using the ZEPB Rig 905, recently serviced and now under long-term contract to the Company.
On Block 53, operated by Dove Energy, the Bayoot-11 well is drilling ahead and has reached a depth of 2,800 meters.
On Block 47, DNO International and partners Geopetrol and state-owned Yemen Oil, Gas & Minerals Co. executed on June 21 the charter of South Hood, the first joint operating company set up under a new model for upstream development and production activities in the country. First oil from the Yaalen discovery on the block is expected by the end of 2013 with the installation of early production facilities capable of delivering 5,000 barrels per day, followed by a permanent facility with a capacity of 10,000 barrels per day at a later stage. DNO International holds a 50 percent stake in Block 47.
---DNO International ASA is an Oslo-listed, Middle East and North Africa focused oil and gas company holding stakes in 17 licenses in various stages of exploration, development and production both onshore and offshore in the Kurdistan Region of Iraq, the Republic of Yemen, the Sultanate of Oman, the United Arab Emirates and the Tunisian Republic. http://www.dno.no---
Oslo, 5 July 2012
DNO International ASA
Tom Bratlie ([email protected] or tel: +47 905 21 904)
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)