DNO International ASA - DNO is today reporting ...
DNO International ASA
("DNO" or "the Company")
DNO is today reporting final results from the testing of Yaalen-3, in the
Republic of Yemen.
The second test in Yaalen-3 flowed 2,650 barrels of oil per day (bopd). As the
first test flowed 1.400 bopd, the aggregated flow rate from the two tests is
4,050 bopd. The test rate from both tests intervals were restricted by
the capacity of the down hole electrical pump used during the test, and the
Company expects that the aggregated flow capacity of the well is in the order of
10,000 bopd.
As previously reported, the Yaalen-3 appraisal well in Block 47 encountered two
oil bearing intervals in the Qishn sandstones, of a total combined net thickness
of around 20 meters ("net pay"). Two tests have been undertaken in the well,
one in each of the oil bearing intervals.
The first test was undertaken in the lowermost interval. This interval flowed
around 1,400 bopd, with no water. The second test, which was undertaken in the
uppermost interval flowed 2,650 bopd. The flow rates were restricted by the
electrical down hole pump used during the tests. Based on the flow and pressure
data observed during the two tests, it is anticipated that the initial
aggregated flow capacity of this well is in the order of 10,000 bopd. No
formation water was observed during the test, and the well proved the thickness
of the reservoir to be larger than expected.
The gross combined reserve potential of the Yaalen / Sharnah oil discoveries was
estimated at 10 million barrels prior to the drilling of the Yalen-3 well. Work
will now be undertaken to incorporate the Yaalen-3 results into the geological
model. Based on the observations to date, it is expected that the reserve
potential of the Yaalen structure will increase, hence the reserves basis for
the Yaalen / Sharnah field development project is expected to improve.
Drilling of the Yaalen-3 appraisal well was part of the work program in
preparation for a development of the Yaalen and Sharnah oil discoveries in the
block. With the positive results observed in Yaalen-3, DNO intends to
accelerate the development of this area, with possible first oil production in
the third quarter of 2011. DNO holds a 40 % interest in block 47.
DNO International ASA
18 May, 2010
Contact:
Media:
Helge Eide, MD DNO International ASA Telephone:Â Â Â +47 23 23 84 80
Ketil Jørgensen, Crux Communication Telephone +47 930 36 866
(Norway)
Mark Edwards, Buchanan Communications (UK) Telephone: +44 207 466 5000
Investor Relations:
Haakon Sandborg, CFO DNO International ASA Telephone: +47 23 23 84 80
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1416529]
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