DNO Says Production at Nabrajah Field Delayed

The Nabrajah Field is expected to commence oil production within the next two weeks, which is slightly behind the original schedule of achieving first oil by end of June.

This minor delay is due to late delivery and installment of third party equipment.

DNO is very satisfied with the overall performance of this fast track field development project, which is securing first oil production less than 1.5 years after the field was discovered.

As previously reported the initial production capacity will be 5,000 BOPD (gross), increasing to 15,000 BOPD (gross) during August 2005. As a consequence of the increased oil reserves in the Basement interval, the capacity of the production facilities will thereafter be increased stepwise to 50,000 BOPD, and full production capacity is expected to be achieved during 4th Quarter 2006.

The next well on Nabrajah, Nabrajah # 7 was spudded 2nd July, and this well will be drilled as a dedicated Qishn oil producer. From August and throughout the year the plan is then to drill 4 back-to-back Nabrajah Basement wells (Nabrajah # 8, 9 10,11). The Nabrajah Field is located in Block 43 (Yemen) and the partners are: DNO: 56.67% (Operator), Oil Search (Yemen) Ltd: 28.33%, The Yemen Company: 15.00% (carried).


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