During September of 1999 DNO completed the final well in a 3 well appraisal programme on Block 32 in Yemen. The objective of the drilling programme was to appraise the Tasour 1 oil discovery made in January 1998. The Tasour 1 well tested approximately 4.800 bopd from the Qishn reservoir, which is the main producing reservoir in the area. The Tasour Discovery is located approximately 10 km north of the Masila Field operated by Canadian Oxidental with a current production in excess of 200.000 bopd.
Tasour 3, being the second appraisal well drilled by DNO, encountered oil in a reservoir formation similar to the Tasour 1 discovery well. The well tested approximately 2.100 bopd together with similar quantities of water. The source of the water is inconclusive at the present time. Two deeper reservoir zones were also penetrated by the well. One of these zones was tested but only water was produced.
The first appraisal well, Tasour 2 was drilled about 4.5 km east of the Tasour 1 well, and penetrated the Qishn reservoir below the expected oil water contact. The well provided important geological information about the eastern extension of the Tasour Discovery.
Tasour W-1, was completed in September as the final well in the current programme and was drilled on structure separate from the Tasour Discovery, some 2.5 km west of Tasour 1. The well had good oil shows while drilling the Qishn reservoir, but from well logs and other information it was concluded that the well could only produce water. The well was cased off and suspended as a potential water injector.
DNO is currently preparing a Phase 1 Early Production Development Plan for the Tasour Discovery. The Phase 1 plan will include production from the two oil wells, Tasour 1 and Tasour 3 with minimum initial investments. The Development Plan will be presented to the Block 32 Partners for approval by Mid December. Following the partners approval, the Development Plan will be presented to Ministry of Oil and Mineral Resources (MOMR
Production start-up is planned by mid-year 2000 with an initial production of 5.000 - 7.000 bopd. Concurrent with the construction and start-up of Phase 1 Development additional technical work will be carried out within the development area. Several untested structures have been identified within the development area and drilling of additional production wells with early tie back to the Phase 1 facilities will be evaluated. The outcome of this work, together with the information from the Phase 1 production will form the basis for a possible Phase 2 Full Scale Development of the Tasour Area.
As reported in the DNO Stock Exchange Notice 1047 on August 26th 1999 the MOMR have revised the License Terms in favour of the Block 32 Joint Venture Group. The new License Terms significantly improve the economics of the Tasour Development.
Joint Venture Partners on Block 32 are:
DNO ASA: 20,00 % (Operator)
Norsk Hydro Yemen AS: 25,00 %
Ansan Wikfs (Hadramut) Limited: 45,19 %
TransGlobe Energy Corporation: 9,81 %