DNO International ASA - January 2010 Production...
("DNO" or "the Company")
DNO is today reporting January 2010 production and a summary of ongoing drilling
and well operations.
PRODUCTION REPORT
DNO's working interest production was 13,148 bopd and DNO's net entitlement
production was 8,533 bopd.
Yemen production
DNO's working interest (WI) production from Yemen in January 2010 was 7,719 bopd
and DNO's net entitlement production was 4,914 bopd.
Production from Yemen is reported as follows:
(Bopd) FY 2009 Q4 2009 Jan-10
-------------------------------------------------------------
Gross production 18,836 19,237 19,682
DNO's working interest (WI) 7,749 7,655 7,719
DNO's net entitlement (NE) 5,358 4,738 4,914
Achieved oil price (USD/bbl) 61 76 83
The production figures include crude oil consumed in the operation of the
Company's production facilities, at an accumulated WI volume of 275 bopd and NE
volume of 170 bopd in January 2010.
Kurdistan production
DNO's working interest (WI) production from Kurdistan in January 2010 was 5,429
bopd and DNO's net entitlement production was 3,619 bopd.
Production from Tawke is reported as follows:
 (Bopd) FY 2009 Q4 2009 Jan-10
------------------------------------------------------------
Total gross production 15,291 6,584 6,032
DNO's working interest (WI) 13,762 5,926 5,429
DNO's net entitlement (NE) 9,186 3,959 3,619
The production figures include crude oil consumed in the operation of the
Company's production facilities, at an accumulated WI volume of 139 bopd and NE
volume of 93 bopd in January 2010.
DNO has not received any new information from the KRG with respect to a payment
mechanism for past and future export of oil from the Tawke field. The Company is
therefore currently focusing on deliveries of crude oil to the local market in
Kurdistan from Tawke
SUMMARY OF ONGOING DRILLING AND WELL OPERATIONS
Yemen
The Nabrajah-10S/S2 well in Block 43 was completed in January and brought on
stream for clean-up and test production. The well is currently flowing 38 bpd of
oil and 543 bpd of water.
After finishing the pilot hole, the well was drilled as a horizontal well of
about 1000 meters in the Shuqra formation which is believed to be the producing
formation in Nabrajah-5. The well has confirmed movable oil 186 m vertically
deeper than Na-5 and opens up for improved recovery from this formation. Work
will be undertaken to further evaluate the results from the Nabrajah-10s/S2 well
and its impact on estimated reserves and production potential.
Drilling of the appraisal well Yaalen-3 in Block 47 is expected to commence
during March.
The Bayoot-7 Basement development well in Block 53 is now completed. A 650 meter
section has been drilled in the fractured basement reservoir and the well is
completed as a Bayoot basement producer. The well has been brought on stream and
is currently producing 149 bopd. The next well to be drilled on Bayoot is the
Bayoot-8, which is the first of a 4 well development drilling program to be
undertaken in 2010.
Kurdistan
The Sindy-1 rig was mobilized and moved to the Erbil PSC during January to
undertake testing of the Erbil-2 well. The testing is now nearing completion. A
total of 4 tests have been carried out in the well to date, with only the last
test flowing oil. The flow rate from this test has been in the order of 200-300
bopd. The oil appears to be of heavy quality (16 API) and similar to the oil
produced during a test in the equivalent formation in Hawler-1.
The remaining program is to test one more zone before the well is temporarily
suspended. The results from the tests will then be evaluated to clarify the
resource potential of the Benenan structure, and if this work is completed by
then, the resource potential will be reported as part of the Annual Statement of
Reserves (ASR) which will be disclosed by end April. A forward plan for the
Erbil license will be filed with the Ministry of Mineral Resources (MNR) by June
this year
DNO International ASA
3 March, 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#1390391]