DNO Drills Yemen for Exploration Success

DNO International reported that the Yaalen # 1 exploration well commenced drilling on 4 January 2008 and is the first exploration well drilled by DNO on this license. The well has been drilled to a depth of approximately 2,550 meters. Oil has been observed while drilling through several intervals, and oil was also retrieved from wire line fluid sampling both in the Qishn sandstone as well as in the Kohlan sandstone immediately above the Basement.

The Dahgah # 1 exploration well commenced drilling on 9 January 2007 and has now reached its total depth of 2,696 meters. The well did not encounter hydrocarbons in the Qishn interval, but oil shows were observed while drilling through a 27 meter thick interval in the Naifa dolomites. The significance of the oil shows is currently being evaluated by wire-line logging and fluid sampling. Decision to test the well is contingent on the results from these ongoing evaluations. Dahgah # 1 is located approximately 5 km east of the Nabrajah field.

Drilling of Bayoot SW # 4 commenced on 18 November 2007. Oil shows were observed while drilling both in a carbonate interval in the Naifa formation just above the Basement, as well as in the fractured Basement interval. The well has been temporarily abandoned and the rig was moved to the Bayoot # 5 location, which is another Basement target within this area. A smaller drilling and work-over rig is being mobilized to undertake the testing of Bayoot SW # 4, and the carbonate reservoir in the Naifa formation will be tested before testing the fractured Basement. As previously reported Bayoot SW # 3 tested 1.600 bopd from Basement within this area, and oil from this well is transported by tanker trucks to the Sharyoof facilities. It is expected that several additional Basement wells within this area will be drilled in 2008.