DNO International ASA - October 2009 Production...

("DNO" or "the Company") DNO is today reporting October 2009 production. DNO's working interest production was 12,712 bopd in October 2009 and DNO's net entitlement production was 7,961 bopd. PRODUCTION REPORT Yemen production DNO's working interest (WI) production from Yemen in October 2009 was 7,677 bopd and DNO's net entitlement production was 4,604 bopd. Average realized oil price in October was 74 USD/bbl. As previously reported the decline of oil production from the Yemen fields is leveling out due to well optimization work and effect of infill wells. The production rate from the Bayoot area in block 53 is still increasing after the installation of down-hole pumps and the gross production from Bayoot in October 2009 was 4,654 bopd. Production from Yemen is reported as follows: (Bopd) Q1 2009 Q2 2009 Q3 2009 Oct 2009 YTD-09 Gross production 18,511 19,057 18,535 19,924 18,755 DNO's working interest (WI) 7,925 7,878 7,542 7,677 7,770 DNO's net entitlement (NE) 5,936 5,788 4,987 4,604 5,469 Achieved oil price (USD/bbl) 43 59 69 74 58 The production figures include crude oil consumed in the operation of the Company's production facilities, at an accumulated volume of 263 bopd in October 2009. Iraq production DNO's working interest (WI) production from Kurdistan in October 2009 was 5,036 bopd and DNO's net entitlement production was 3,357 bopd. Production from Tawke is reported as follows: (Bopd) Q1 2009 Q2 2009 Q3 2009 Oct 2009 YTD-09 Total gross production 3,179 9,929 41,157 5,595 16,938 DNO's working interest (WI) 2,861 8,937 37,036 5,036 15,244 DNO's net entitlement (NE) 1,908 5,965 24,796 3,357 10,197 The operation of the Company's production facilities did not consume any crude oil in October 2009. As previously reported DNO will now focus on local sales until a future payment mechanism for crude exports is in place. Since export halted 22 September all the production from Tawke is delivered to the domestic market. SUMMARY OF DRILLING ACTIVITIES The Tasour-26 infill well was brought on-stream in November and the well is currently producing 700 bopd (gross), as expected. The planned sidetrack of Nabrajah-10 commenced in 21 November. The well is targeting the Jurassic Shuqra formation dolomite, already proved oil producing in the well Nabrajah-5. Drilling of the Bayoot development well, Bayoot-7 commenced on 3 September. The drilling operations have been somewhat delayed due to drilling problems. The well has proved oil shows and gas reading at the top of basement, as expected. The well will be drilling a 900 m section in the basement reservoir. There are currently no drilling activities in Kurdistan. DNO International ASA 4 December, 2009 This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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