DNO Says Tawke #4 Tests at 8,500 bpod

Tawke area of Iraqi Kurdistan
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A barefoot (open hole) test was undertaken and the Tawke #4 well produced at a maximum flow rate of 8,500 bopd through a 2-inch choke size. Oil samples were taken confirming similar crude oil quality as was produced during testing of Tawke # 1 / 1A and Tawke # 2. The well will now be completed as an oil producer before the rig is moved to the Tawke # 5 location, hence Tawke # 4 is drilled, tested and completed within a period of approximately three weeks.

Drilling of Tawke # 4 commenced on December 14, 2006, and the well is designed as an oil producer. The well is located 0.8 km northeast of Tawke # 1 in northern Iraq.

Tawke # 5 will also be designed as an oil producer and will be located 1.1 km east of the Tawke # 4 well.

Tawke # 3 will be drilled with the same rig which was used drilling Khanke # 1. The well is expected to spud within the first week of January. Tawke # 3 is an exploration / appraisal well to be located at the eastern boundaries of the Tawke area. The well will appraise the main Tawke oil producing interval as well as penetrate some deeper reservoir intervals (> 2,000 meters) which were found oil bearing in Tawke # 1 but not properly tested.

Commenting on the results Managing Director Helge Eide says:

"We are very pleased with Tawke # 4 which has turned out as the best oil producer in the field to date. Credit should also be given to the project team who have delivered this excellent well in a safe and very cost effective manner."


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