DNO Makes Discovery in Tasour West Area

DNO has completed drilling of Tasour #10 located to the west of the Tasour-Field in Yemen. The well found moveable oil in the same oil producing zone as in the Tasour-Field. Tasour #10 is now connected by pipeline to the Tasour Central Production Facilities, and is currently producing ca. 1,200 BOPD.

Tasour #10 was directionally drilled to test a possible western extension of the Tasour-Field, and discovered moveable oil in the Qishn S-1A which is the main producing zone in the Tasour-Field. The well is the 8th production well on the Tasour-Field and is currently producing at a rate of approximately 1,200 barrels of oil per day (BOPD) and 3,750 barrels of water per day (BWPD). The well production capacity is lower than has been observed on the main Tasour-Field.

After Tasour #10 was put on production, and with all the remaining Tasour wells producing at full capacity, the total field production is now approximately 20,000 BOPD.

This new oil discovery has extended the Tasour-Field towards the west. Additional remapping work is underway to select additional drilling locations within the western field extension area. It is anticipated that the first of these locations will commence drilling in the fourth quarter of 2003.

The Tasour #10 well results are expected to increase the reserves assigned to the Tasour-Field, and DNO is currently undertaking work to revise the reserve figures. A third party engineering firm will also conduct a revised reserve evaluation at the year-end.

The rig is now being transported from Block 32 to Block 53 to commence drilling of the first of two satellite structures located close to the Sharyoof field.

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