DNO Reports Sharyoof Start-up
DNO said that the Sharyoof # 24 well in Block 53 (DNO, 24.45%) in Yemen was brought on production with an initial gross oil rate of 1,100 bopd. Another infill well on the Sharyoof Field, Sharyoof # 25, is set to be spudded this week. Sharyoof # 25 is planned as a water injector, and drilling is estimated to take approximately 20 days.
Testing of Bayoot South # 1 has been completed and the well flowed at stable rate of 370 bopd from carbonate reservoirs.
Bayoot South # 1 is the one of three oil discovery wells that has been drilled and tested within the Bayoot / Hekma area located some 10 km south of the Sharyoof Field.
As previously reported Bayoot SW # 2 flowed 700 bopd from fractured basement, and Hekma # 1 flowed 800 bopd and 1,200 bopd from two individual deeper sandstone reservoirs respectively.
Based on the results from the three oil discovery wells the P50 gross reserves within the Bayoot / Hekma area is estimated at approximately 17 million barrels (5 million barrels net to DNO, pre-tax).
From the recent drilling results it is becoming clear that this area in the southern part of Block 53, contains an exciting potential. Out of four recent wells drilled within this area, three wells have proven oil. Although tests to date has not yielded production rates at levels achieved from the shallower Qishn sandstones, higher production rates could be achieved through other drilling, completion and stimulation techniques.
Initial test production from the three oil discovery wells has commenced by trucking back to the Sharyoof Field, but tie-back to Sharyoof facilities on permanent basis is under consideration.
Block 43 (56.67%)
Following the interpretation of the new 3-D seismic acquired across the Nabrajah Field during second half of 2006, drilling has been resumed at Nabrajah. Drilling of Nabrajah # 12 commenced on 21st February and will be a Qishn infill target. Thereafter the plan is to drill Nabrajah # 13 which will test a new possible play concept.
Block 44 (65.1 %)
Ardah-1 exploration well has been spudded 24th February to test a Qishn reservoir prospect as well as explore for deep carbonate reservoirs. This is the second exploration well drilled by DNO as the Operator in the block, and the drilling of the well is estimated to take 35 days.
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