DNO to Accelerate Yemen Drilling Program

DNO is planning to accelerate the drilling activity in Yemen. The revised plan is to drill another 13 wells by the end of 2005, of which two are already in progress in the Tasour area. In order to meet this program a third drilling rig will have to be contracted from 4th Quarter 2005, which will mean that 3 drilling rigs could be in operation in DNO's Yemen licenses. The revised drilling plan may be altered depending on the drilling results and is also is subject to final approval among the partners in Block 32, Block 53 and Block 43.

Tasour / Block 32 (4 planned wells):

Two new wells are currently being drilled in the Tasour Area. Tasour # 18 is an infill production well located at the top of the Tasour main structure, and is expected to be completed early July. Tasour # 19 will appraise an area southwest of Tasour # 8, and will be drilled both into the Qishn reservoir as well as into the Basement level.

In 4th Quarter 2005 two exploration wells are planned in Block 32, one Basement prospect and one Qishn prospect.

Nabrajah / Block 43 (5 planned wells):

The next well on Nabrajah, Nabrajah # 7 is planned to spud in July, and is likely to be drilled as a dedicated Qishn oil producer. From August and throughout the year the plan is then to drill 4 back-to-back Narbrajah Basement wells (Nabrajah # 8, 9 10,11).

Sharyoof / Block 53 (4 planned wells):

Drilling of two back-to-back infill wells at the Sharyoof Field is expected to commence in August 2005. In the 4th Quarter two additional wells are planned to be drilled in Block 53. The targets of these wells are not yet defined.


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