DNO reported the preliminary results from the Chite-1 exploration well in the Inhaminga Block in Mozambique.
The well spudded on November 19, and has now reached the targeted total depth of 3,500 meters. No hydrocarbons were detected in Chite-1 but valuable geological and strategraphical information have been collected to further assist in evaluating the hydrocarbon potential in the Inhaminga Block. The drilling operation has been performed according to the drilling program, with no health, safety or environmental issues.
Chite-1 is the first well ever to be drilled in the Urema Graben in Mozambique, a potential new play fairway that DNO is testing for source rocks, reservoir rocks and potential hydrocarbon trapping mechanisms. DNO will continue exploration in the Inhaminga Block and has exercised an option with the contractor to drill a second well named Inhaminga High-1. This is another high impact frontier exploration well east of the Chite-1 location. Information from the two wells is expected to provide valuable information in assessing the hydrocarbon prospectivity and potential in the block.
Work has been undertaken to prepare the well site for Inhaminga High-1 and the spud of the well is estimated to take place during January, 2011.
As previously reported, DNO has been awarded the rights to negotiate an EPC for the Lower Zambezi Block in the fourth licensing round in Mozambique. Lower Zambezi is located north of the Inhaminga Block in a previously unexplored area.
DNO is currently drilling two additional exploration wells, the Gabdain-1 basement exploration well in Block 72 in Yemen, and the Bastora-1 exploration well in the Erbil license in the Kurdistan Region of Iraq. Drilling operations are progressing in accordance with the plan and there is currently no new information from these wells beyond what was reported to the market on December 21.
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