DNO Considers Sidetrack for Nabrajah #8 Well

Following the investigations of the operational integrity of the production test on the Nabrajah #8 well, including the possibility of a mechanical failure, it has now been concluded that the reservoir is not able to yield any fluid flow at this location.

Alternative plans for Nabrajah # 8 is pending further work and includes a possible sidetrack to another basement location to penetrate producible reservoir or alternatively conversion into to a Qishn water injector. Nabrajah # 8, which is located 1.6 kilometers east-northeast of Nabrajah # 5 will now be temporarily abandoned and the rig will be moved to the Nabrajah # 9 location some 2.5 kilometers west of Nabrajah # 5.

Previous production tests in the Nabrajah area have confirmed excellent productivity of the fractured basement intervals:

Nabrajah #2 flowed in excess of 3,000 barrels of oil equivalents per day (approximately 15 million standard cubic feet per day of gas plus approximately 400 barrels of condensate per day) and Nabrajah #5 flowed 5,800 barrels of oil per day.

The fractured basement behaves very different from a conventional reservoir, and information from additional drilling together with further technical work should help improving the J/V's understanding of the fractured basement reservoir in the Nabrajah area.

Nabrajah drilling and development schedule are progressing according to plan and early basement oil production from Nabrajah # 5 is expected to start within the coming week.

The participants in Block 43 are DNO as operator with 56.67%; Oil Search (Yemen) Limited with 23.88%; and The Yemen Company with 15% carried interest.