DNO Increases Stake in Block 43 in Yemen

DNO has increased its interest in Block 43, Yemen by 6.67% to 56.67%, following the previous co-venturer First Calgary Petroleum (FCP) withdrawal from the license.

FCP's 10 % interest in Block 43 has now been distributed proportionally to DNO ASA by 6.67 & and Oil Search Ltd by 3.33 % following the failure of FCP to meet its obligation under the PSA (default). The resulting partners and their associated interests in the license are as follows:

DNO ASA: 56.67% (Operator)
Oil Search Ltd: 28.33%
TYC: 15.00 % (carried)

Block 43 contains the recent Nabrajah discovery with initial estimated reserves of 10 - 12 million barrels, of which DNO's pre-tax share is 5.7 - 6.8 million barrels.

Following the positive results from Nabrajah-1 discovery well reported earlier this year, two appraisal wells will now be drilled commencing within the next few weeks. The forward plan is to work towards a field development plan for submission to the Yemen authorities towards the end of 2004. If the field development start