DNO's Yemeni Well Passes Test

DNO reported initial results from the testing of Yaalen-3, in the Republic of Yemen. 

The first test in Yaalen-3 flowed 1,400 barrels of oil per day, with no water. The test rate was restricted by the equipment used during the test, and the Company expects that this interval has the capacity to flow in the order of 4,000 - 5,000 bopd. 

As previously reported, the Yaalen-3 appraisal well in Block 47, Yemen was drilled to a total depth of 1.898 meters. The well encountered two oil bearing intervals in the Qishn sandstones, of a total combined net thickness of around 20 meters ("net pay"). Two tests will be undertaken in the well, one in each of the oil bearing intervals. 

The first test was undertaken in the lowermost interval. This interval flowed around 1,400 barrels of oil per day (bopd), with no water. The flow rate was restricted by the electrical down hole pump used during the test. Based on the flow and pressure data observed during the test, it is anticipated that the initial flow capacity of this reservoir interval is in the in the range of 4,000 - 5,000 bopd. No formation water was observed during the test. The well proved the reservoir thicker than expected and the oil reserves potential in the structure will be improved. 

The forward plan is to undertake one test in the uppermost reservoir interval. This interval is expected to have similar reservoir characteristics compared to the interval already been tested. 

Drilling of the Yaalen-3 appraisal well is part of the work program in preparation for a development of the Yaalen & Sharnah oil discoveries in the block. As previously reported the combined gross recoverable resource potential of these two oil discoveries prior to this oil test was 10 million barrels. The resource potential will be re-evaluated based on the final results from Yaalen-3. A second well on the Sharnah discovery is planned to be drilled towards the end of the second quarter. 

With the positive results observed in Yaalen-3, DNO intends to accelerate the development of this area where the first step is to file a development plan with the Yemen authorities. DNO holds a 40 % interest in block 47.


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