New Qishn Test in Nabrajah-2

DNO Nabrajah Field Area, Yemen
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A new test of the Qishn level in Nabrajah-2 in Yemen produced approximately 1,300 barrels of clean oil per day.

As reported on September 28, 2004, the Nabrajah-2 test in the Qishn level produced about 379 barrels of oil and 7 020 barrels of water per day. The test results did not correspond to the evaluation of open hole logs, and the water production was therefore assumed to come from water bearing sands in the lower Qishn intervals. The water production from below was assumed to be caused by leakage behind casing due to poor cement seal, which was later confirmed by production logs.

The leak has now been repaired and a new test was performed in the uppermost part of the oil bearing Qishn reservoir. After a clean-up period this test produced about 1,300 barrels of clean oil per day.

As only the uppermost part of the oil bearing interval could be perforated after the leak repair this production rate does not necessarily represent the full capacity of the well.

Nabrajah-1 flowed about 1 973 barrels of oil and 375 barrels of water from the this section.

As previously reported proven plus probably reserves for the Nabrajah structure are now estimated by DNO at ca. 20 million barrels of which DNO's pretax share is ca. 11 million barrels. Block 43 partners are now preparing for an early production development scheme with possible first oil in May 2005, some 4-5 months earlier than previous plans.

DNO is the Operator of Block 43 holding of 56.67 % interest.

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