DNO Updates Progress of 2007 Yemen Drilling Program

DNO has an extensive drilling program in Yemen during 2007 and rig capacity has been secured for all the wells. A total of 22 wells are planned to be drilled this year; 13 exploration wells and 9 appraisal / development wells. To date three exploration wells and one infill well have been completed.

Block 43 (56.67%)

Following the interpretation of the new 3-D seismic acquired across the Nabrajah Field during second half of 2006, drilling has resumed at the Field. Drilling of Nabrajah # 12 commenced on February 21st, and was drilled as a Qishn infill well.

The well has been brought on stream at an initial gross flow rate of 1,450 bopd. The results from the well together with the interpretation of the new 3-D seismic form the basis for the location of several additional Qishn infill targets.

The rig will now move to the location of Nabrajah # 13, which will test a new play concept within the Nabrajah area. Based on the results from this well along with the Nabrajah # 12 reported above, a revised drilling plan for Nabrajah will be prepared.

Block 53 (24.45%)

Drilling of Sharyoof # 25 commenced on 28 February and the well is planned as a water injector. This is the third infill well at the Sharyoof Field drilled over the past 6 months. The Sharyoof # 23 and # 24 were both drilled as infill oil producers and was brought on stream at initial gross flow rates of 1,700 bopd (November 6th) and 1,100 bopd (February 7th) respectively.

Block 44 (65.1 %)

Drilling of Ardah #1 exploration commenced on February 24th. The primary objective of the well is a Qishn Formation target, but the well is also planned to explore for deeper carbonate reservoirs. This is the second exploration well drilled by DNO as the Operator in the block.


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