DNO is pleased to announce an update on the ongoing drilling activities in Yemen.

DNO is undertaking an extensive drilling program in Yemen throughout 2007 with the planned drilling of 22 wells, consisting of 13 exploration wells and 9 appraisal wells.
The status of ongoing drilling operations is as follows:
Nabrajah - Block 43 (56.67%)
Following the interpretation of the new 3-D seismic acquired across the Nabrajah Field with the extension that covers the full width of Development Block during the second half of 2006, drilling resumed at the Nabrajah Field earlier this year.
Nabrajah # 14 commenced drilling on 26 April as the second Qishn appraisal well which is located based on the new 3-D seismic interpretation. The well has now been brought on stream at an initial gross flow rate of 1,400 bopd. There are additional Qishn locations identified at the Nabrajah structure by the new 3-D data and one new Qishn target will be drilled during the next month. Exploration prospects are also identified within the new 3D area outside the Nabrajah structure. The partners have agreed to drill one of these prospects during the 3rd Quarter of 2007.
Drilling of Nabrajah # 13 commenced on 29 March and which targeted a new play concept within the Nabrajah area.  After the well was drilled to a total depth of 3.345 meters three tests were undertaken comprising of one combined open-hole test of (basement and overlaying carbonates) and two tests in the Naifa carbonates.
The first test produced oil at a flow rate of 400 bopd, however the production rate was not sustainable.  The second test was undertaken in the lower part of the Naifa carbonates and flowed formation water. The third and final test flowed gas and condensate. The gas rate was 11.1 million scf per day, equivalent to 1.850 bopd and the condensate rate was 325 bopd. 
Prior to drilling Nabrajah # 13, Nabrajah # 2 and Nabrajah # 5 are to only two wells which have confirmed good productivity in the deeper reservoir zones (Naifa / Basement). Nabrajah # 13 is drilled 765 m southwest of Nabrajah # 5. Drilling and testing of Nabrajah # 13 has proved the fault block with productive Naifa formation carbonate reservoir to be wider that mapped before. Further evaluation of the gas/condensate discovery in Naifa will now be undertaken. A long-term test is planned in Nabrajah #13 for the purpose to get more reservoir information.
Sharyoof - Block 53 (24.45%)
As previously reported, the Sharyoof # 20 well, which was drilled in 2006, was originally completed as a Qishn S1C sandstone producer, but was shut down after a short while due to high water production.  The well was re-completed and the shallower S1A sandstone interval has been brought on stream at an initial gross oil rate of 2,400 bopd. The well is still producing at a gross oil rate of more than 2,000 bopd.
This is another successful operation adding production from the Sharyoof field following the completion of the two recent infill wells Sharyoof # 23 and # 24, which were brought on stream in November 2006 and February 2007 respectively.
Drilling of Sharyoof # 26 was commenced on 3 May and the well was planned as an infill /appraisal well within the Sharyoof Field area. Due to drilling problems, the well has now been abandoned. The drilling rig is now moved to the Bayoot area, to drill the appraisal/development well Bayoot SW-3.
In the Bayoot / Hekma area all the three oil discovery wells drilled in 2006 are now on production. The oil is being transported to the Sharyoof facilities by trucking. The gross production from the three wells is approximately 900 bopd.
Godah - Block 32 (38.95 %)
In Block 32 drilling of Godah #5 commenced on 11 April. The well has now been brought on stream at an initital flow rate of 400 bopd. Drilling of two additional development wells (Godah # 6 and #7) is currently in progress.
11 June 2007
Notes to the Editor:
DNO ASA is an independent exploration and production company with activities in Norway, Middle East and Africa.
The Company has P50 reserves and resources of 151mmboe and produces approximately 12,500  boe per day. The oil production to the Company is planned to be increased to approximately 26,000 bopd by year end.
DNO has been operating in Yemen since 1998 and is currently holding 7 licenses, of which three in production.  In 2007 the Company plans to drill 22 wells in Yemen of which 17 as Operator.
DNO is quoted on the Oslo Stock Exchange, ticker DNO, and is currently capitalised at approximately NOK 10 billion.