DNO Cites Ongoing Drilling Activities in Yemen, Kurdistan Region


Tawke area of Iraqi Kurdistan
(Click to Enlarge)

DNO has provided a summary of ongoing drilling activities in Yemen and the Kurdistan region of Iraq.

YEMEN

Block 43

On October 14, 2008 the rig 908 completed the Nabrajah #19 well as a water injector on the south-east flank of the Nabrajah field. The rig was then moved to drill the Wasaa #1 exploration well on the same block. This well was spudded October 23, 2008.

Block 44

Rig 905 spudded the Ghatel #1 exploration well on September 21, 2008. Two sidetracks were drilled, and indications of hydrocarbons were encountered. The structural complex will be further evaluated prior to deciding on drilling additional wells. The well was permanently abandoned October 23, 2008. The rig was moved to block 72 to drill exploration well Seer #1.

Block 53

Exploration well Raoq #1 was spudded October 1, 2008 with rig 919, and will explore the resource potential on a separate Basement structure to the south of the Bayoot area.

KURDISTAN REGION OF IRAQ

Operations with the Sindy drilling rig finished on October 16, 2008. The rig was moved to the outside of the CPF area, and a minimum crew will remain to maintain the rig. In the longer term, the rig is planned to be upgraded to enable it to undertake testing and completion operations of the Erbil #2 well and other deep wells, in addition to supporting onging Tawke well operations.

GWD #9 rig was released from the contract 16 October 2008. In addition, GWD #10 rig has been assigned to another operator. Further plans for GWD #10 going into 2009, are being reviewed by DNO.

OTHER AREAS

New Award on UKCS


DNO is has been awarded interest in Blocks 211/27d in the UK Continental Shelf 25th Seaward Licensing Round ("the Round"), further consolidating the Company's position in this area.

Block 211/27d is located immediately adjacent to Block 211/22b containing the Mulle appraisal project. Block 211/27d hosts a mapped southern extension of the Mulle accumulation and was applied for by the Mulle joint venture participants in proportion to their existing interests in the Mulle project.

The Mulle accumulation was discovered through the drilling of an exploration well in 1977 which encountered a 17m gross oil column in the middle Jurassic Brent sequences, but was not flow tested at the time. In May 2008, DNO International ASA published a most likely in-place resource estimate of 17 million barrels of oil, providing DNO with a net interest of 8.5 million barrels of oil. With the award of Block 211/27d, this resource estimate is likely to increase.

DNO International ASA is the Operator and holds 50% working interest in Block 211/22b and the newly awarded Block 211/27d.

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