DNO International ASA files the disclosure for hydrocarbon reserves as of 31.12.2007 in accordance with Oslo Stock Exchange Circular no 2/2007.
The total remaining P50 reserves class 1-3 net to DNO as of 31.12.2007 are estimated to 151,8 mill. bbl. This is higher than the previously reported figure of 127,9 mill. bbl.
The reason for this change is that the Company's working interest (pre-tax) share of the Tawke Field reserves has now been adjusted to incorporate DNO's share of cost oil related to carried interest in accordance with the reviewed terms of the Tawke PSC. The method for calculating DNO's pre-tax share of the reserves from Tawke is consistent with the method applied for Yemen (ref. section 3.2 of the ASR report).
The gross P50 reserves for Tawke are estimated to 230 mill bbls, which is unchanged compared to the previously reported estimates. A third party independent evaluation for Tawke reserves confirms this estimate.
The remaining P50 resources class 4-5 to DNO are estimated to 1,5 mill. bbl and P50 resources class 7 are estimated to 3,5 mill. bbl. These figures are unchanged compared to the previously reported volumes. The total reserves and resources class 1-7 as of 31.12.2007 are estimated to 156,8 mill. bbls.
Helge Eide, President and Managing Director says, "We are pleased to note that 2007 was another year with strong increase in reserves at low costs, which is in line with our overall strategy. Our P50 reserves increased by 72 million barrels at total FD&A costs of approximately 3,5 USD per barrel, which is a strong achievement compared to the continued increasing cost levels in the industry today.
"We are well positioned to continue this growth in 2008 on the back of our new oil discoveries in the first quarter and our exciting exploration program for the year."
DNO's share (36,9 %) of the P50 reserves and resources class 1-5 in Det norske oljeselskap ASA (DETNOR) are estimated to 31,4 mill. boe and the Company's share of the P50 resources class 7 in DETNOR are estimated to 16,2 mill. boe.
The figures related to DETNOR are defined as associated reserves and resources and are based on volumes reported by DETNOR to the market. The ASR report does not include resources class 7.
During the first quarter DNO has reported several new oil discoveries. The Hawler # 1 well in Kurdistan / Iraq tested 9,000 bopd from one zone in the Jurassic interval and additional testing of the well is currently ongoing.
In Yemen The Yaalen # 1 oil discovery in Block 47 is yet to be tested and two new wells proved oil in the Bayoot area in Block 53.
DNO will also continue with a high level of exploration drilling in 2008, targeting an unrisked resource potential of 280-390 mill. bbls net to DNO. In sum there is a potential for substantial further increase in the Company's reserves and resources in 2008.
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