DNO's Tawke #1 Well in Iraq Encounters Oil

Iraq - N. Kurdish Territory
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The first well within DNO's PSA's located in the Kurdish area of Northern Iraq, Tawke # 1 has encountered movable oil at the top of the first prospective reservoir interval.

Tawke # 1, which was spudded on November 28, 2005 has reached the first prospective reservoir interval at approximately 350 meters. While drilling into the top of the reservoir section the well took influx of oil under pressure. The oil was circulated out and flared off in a controlled manner. Samples of the oil were taken confirming an API gravity of approximately 24 API. This API grade corresponds to oil produced from other fields at similar reservoir level in Northern Iraq.

The forward plan is to continue drilling the full reservoir section, which could be up to 800 meters thick according to the prognosis. Thereafter wireline logging will be undertaken to evaluate the reservoir with respect to reservoir characteristics and movable oil content.

DNO is the Operator of the PSA with a 40 % beneficial interest.


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