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DNO ASA - Nabrajah Field on Production

Source: www.gulfoilandgas.com 7/18/2005, Location: Middle East

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The Nabrajah Field commenced oil production on 12th July 2005. Completion of this fast track field development project marks a new milestone to DNO in Yemen. Nabrajah is the third oil field development for DNO in Yemen since the entry in 1998, of which two as Operator.

At this initial stage the Nabrajah Central Processing Facilities ("CPF") will be in testing mode in order to secure stable and safe build up of production. The first well (Nabrajah # 2) was brought on stream 12th July, and the plan is to hook up 3 more oil producers (Nabrajah # 1, # 3 and # 4) during the course of the coming week. Nabrajah # 7 is due to drill through the reservoir this week-end and will be completed as the 5th Qishn oil producer. Nabrajah # 6 has been drilled and completed as a Qishn water injector.

Initially the wells will be opened at moderate rates due to clean up. The CPF capacity in this first stage is designed at 5,000 BOPD (gross) and is serving oil production from the Qishn sandstone reservoir only. The results of the early Nabrajah production are currently providing reservoir information with significance for further optimization of the production and the development strategy. The first Nabrajah production figures will be reported as part of the July monthly production report due mid August.

As previously reported the current plan is to increase the CPF capacity to 15,000 BOPD (gross) by end August 2005. As a consequence of the Nabrajah Basement oil discovery the CPF capacity will thereafter be increased stepwise to 50,000 BOPD (gross), and full capacity is expected to be achieved during 4th Quarter 2006.

As reported by DNO in the Stock Exchange Notice of 23rd May 2005, the combined proven plus probable oil reserves in Qishn and Basement/Kohlan is estimated at 68 million barrels (gross) of which DNO's pre-tax share is 44 million barrels.

The Nabrajah Field is located in Block 43, Yemen and the partners are:
DNO: 56,67 % (Operator)
Oil Search (Yemen) Ltd: 28,33 %
The Yemen Company: 15,00 % (carried).


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