OMV Makes Huge Oil Discovery in Yemen

OMV has made another oil discovery in Block S2 (Al Uqlah) in the Shabwa province of Yemen. The OMV operated Al-Nilam-ST1 well, drilled to a total depth of 3,090 meters encountered a 430 meter oil column in fractured basement formation which tested at a stable flow rate of 1,800 bbl/day. The secondary target, tested at a flow rate of 200 bbl/day. This follows the successful test of the Habban-1 well, in the same structure, at a stable flow rate of 500 bbl/day in July 2005. These recent positive results lay the groundwork for assessing the development possibilities and commercial potential of the block.

Block S2 covers an area of 2,070 square kilometers and is located in central western Yemen in close proximity to Block 2 (Al Mabar) for which OMV has signed a Production Sharing Agreement on July 13, 2005.

Helmut Langanger, OMV Executive Board member responsible for Exploration and Production stated: "This further success in Yemen fits to our strategy to increase our exploration activities in our core regions. The positive test results further strengthen our position in Yemen. We are currently assessing the full potential of Block S2."

Participants in Block S2 are OMV (Yemen Block S2) Exploration GmbH with 44%; Sinopec of China with 37.5%; The Yemen General Corporation for Oil & Gs with 12.5% and The Yemen Resources Limited with 6%.

OMV has been active in Yemen since the early 1990s. The company has an office in Sana'a, Yemen, with 10 employees, including 3 expatriates.

Block S2 (Al Uqlah) was acquired with the international portfolio of Preussag. OMV assumed operatorship and discovered oil in the Al-Nilam-1 well in 2003. Then, following comprehensive block evaluation in 2004, the Habban-1 oil discovery was drilling in 2005. The Al-Nilam-ST1 successfully tested the potential of the fractured basement in another compartment of the Habban field.

A Production Sharing Agreement (PSA) for Block 2 (Al Mabar) was signed on July 13, 2005. Once the agreement has been ratified by the Parliament of Yemen, OMV will assume operatorship and commence exploration of the block.