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DNO International ASA DNO is pleased to report second quarter 2008 production figures and a summary of ongoing drilling activities.
PRODUCTION REPORT
DNO's Working Interest (WI) production continued to increase in June to 22,545 bopd, and in the second quarter the WI production increased to 20,151 bopd. This is up 57 % compared to the second quarter 2007 and up 16 % compared to the first quarter of 2008.
The Net Entitlement (NE) production to DNO in second quarter was 12,809 bopd, and the achived oil price was 71,46 USD per barrel.
*) As part of the change in Tawke PSC terms DNO was entitled an additional volume of 82,558 barrels produced from start of production in June 2007 until 12th March 2008. This additional volume is booked in 1st quarter 2008
Gross production from the Tawke field in 2nd quarter 2008 was 11,361 bopd, up 65 % compared to 1st quarter 2008 (6,872 bopd). The increase is due to higher sales volumes in the domestic market.
Net Entitlement (NE) Production and Achieved Oil Price
Net entitlement production is shown in the table below:
The production figures (WI and net entitlement) include crude oil consumed in the operation of the Company's production s facilities, at an accumulated volume of 318 bopd during 2nd quarter 2008 compared to 306 bopd in 1st quarter.
SUMMARY OF ONGOING DRILLING ACTIVITIES
Yemen
Block 43
Rig 908 spudded Nabrajah #18 development well on 30 May 2008 and the well was completed as an oil producer. The initial gross flow rate is 30-40 bopd with high water production. The rig will now be moved to the eastern part of the Block to drill the Suwehed # 1 exploration well.
Block 47
On the Yaalen #1 discovery well, the test programme has continued with rig 900. As previously reported the first test was carried out as an open hole test of Basement, testing gas at a flow rate of 2,45 million standard cubic feet per day (scfpd) with associated condensate rate of 64 bopd. The well is currently testing the Qishn sand stone interval, as the final test in the well. The test undertaken in the carbonate section between the Basement and the Qishn intervals did not confirm commercial rates of hydrocarbons.
The Yaalen # 2 exploration well has confirmed oil in the Qishn sand stones from open hole fluid sampling. Testing of this interval has been undertaken but the test results to date are not conclusive. The rig will be now be released and moved to drill Tasour # 17 located east of the Tasour field in Block 32. Additional testing of the Qishn interval will be undertaken with Rig 900 as soon as the Yaalen # 1 testing is completed.
Block 53
The Bayoot #6 exploration well in Block 53 was spudded 17 June 2008, and the drilling is currently in progress.
Kurdistan Region of Iraq
Tawke PSC area
As previously reported the test of the Cretaceous interval in Tawke # 11 flowed at a maximum gross rate of 8,500 bopd. The well is now completed as a future oil producer / observation well.
The Sindy rig was then moved to drill the Tawke # 10 appraisal well targeting the Tertiary formation at the western part of the Tawke structure. The drilling has now been completed and the well flowed at a maximum gross rate of 9,300 bopd from the Tertiary interval. The well will be completed as a future oil producer.
The Tawke # 15 well was spudded 20 May 2008 with the GWD 9 rig. The well will be drilled as a combined Cretaceous delineation well and Jurassic/Triassic exploration well. Drilling is in progress but the well has not yet reached the primary target intervals.
Erbil PSC Area The Hawler #2 well was spudded 8 May 2008 with rig GWD 10. The well is primarily targeting Jurassic and Triassic intervals to further explore the oil discovery in Hawler #1 well. Drilling is in progress but the well has not yet reached the primary target formation.
Mozambique
Inhaminga block
The Sangussi #1 exploration well was spudded on 4 July 2008. The well has now reached the total depth without encountering hydrocarbons. The rig will now be released but further technical work and prospect evaluation will be undertaken to investigate additional prospects potential within this large Block.
