Testing confirms oil discovery in block 43 - Yemen

Drilling of the Nabrajah-1 well commenced on 9 February, and on 5 March reached a total depth of about 2,200 metres. It was decided to test the well after downhole logging confirmed hydrocarbons in the the Qishn sandstone.
DST # 1:
The first test covered a deeper zone in which hydrocarbon traces had been observed during drilling, but without the downhole logging showing movable hydrocarbons. Because of mechanical problems test results were not conclusive,  and it may be relevant to test this zone in a possible future well.
DST # 2 (1784.5 - 1789.5 m):
The second test focused on the lower part of the main reservoir, the Qishn Sandstone, in which logs indicated an oil/water contact. Test production amounted to 544 barrels of oil and 7 074 barrels of water per day. The test confirmed that the oil/water contact was in the lower part of the tested interval.
DST # 3 (1769,0 - 1.781,5 m):
The third and final production test was implemented in the upper part of the main reservoir. Test production amounted to 1,973 barrels of oil and 375 barrels of water per day. The oil measured 25.3 degrees API, which is somewhat lower than the oil in the Tasour field. The gas content in the oil was also significantly higher than in Tasour.
Preliminary estimates indicate recoverable oil reserves of about 10 - 12 million barrels (of which DNO's share is some 5 - 6 million barrels before tax), which may be sufficient for a commercial development. By way of comparison it may be mentioned that the decision to develop the Tasour field was based on 8 million barrels of oil reserves.
The structure has not yet been sufficiently delineated, and a potential exists for additional reserves.

Two new wells will be drilled to delineate the discovery, planned for the second and third quarters of 2004. Parallel with this, various studies and analyses will be carried out of the discovery, with the aim to submit a possible development plan by the end of 2004. Based on DNO's experience from the development of the Tasour field in block 32, it will then be possible to start oil production in the third quarter of 2005.
A well will now be drilled in a smaller structure close to the new oil discovery.
At the end of 2003, DNO's proved and probable oil reserves (before tax) in Yemen were about 13 million barrels. A development of the new oil discovery will increase the company's oil reserves in Yemen by approximately 40 per cent.
DNO is operator and holds a 50% interest in the licence.