DNO Says Testing Continues on Bayoot SW # 2 in Yemen

DNO says testing of the fractured basement in Bayoot SW # 2 resumed last week after installing a new Electrical Semi-submersible (ESP) pump. A maximum rate of approximately 1,400 barrels fluid per day was achieved, comprising a mix of drilling fluids, oil and gas. During the past few days the well has shown an increase in the oil fraction of the well flow, and a maximum gross oil flow rate of 700 barrels per day has been achieved. The well is currently shut in for pressure build up analysis. Thereafter the testing will continue to further clean-up the well flow.

Early transport of oil has also commenced by trucking to the Sharyoof central processing facilities some 10 km from the well, at daily gross volumes of ca. 200 - 250 BOPD. Contingent on the final test results, a pipeline and other facilities will be installed to connect the Bayoot oil production to the Sharyoof facilities on permanent basis.

As previously reported substantial mud losses occurred during drilling the basement interval. It is estimated that up to 8.000 barrels of drilling & completion fluid have been lost into the fractured basement interval. To date some 2 000 barrels of this fluid has been recovered trough back flowing. A full clean-up of the well flow is therefore assumed to take several additional days of testing.

The Bayoot structure is located on a very prospective basement trend between the Suna field in Block 14 some 14 km to the south east, and the Kahrir field in Block 10 some 15 km to the south west. The Suna and Kahrir fields have proven to be the most successful basement producing fields in Yemen to date.

The exploration well, Hekma # 1 is also currently being drilled some 5 km from Bayoot SW # 2.


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