DNO Provides Update on Drilling Activities in Iraq

Tawke PSC area: The Tawke # 12 well was drilled to a total depth of 2.753 meters. The well tested approximately 9 000 bopd aggregated from two tests in the Cretaceous interval. The flow rates are assumed to be restricted by surface test equipment.

Oil shows were also observed in the Jurassic interval but no flow rate was achieved during testing. The Jurassic interval will be subject to further evaluation within the Tawke area and a future Jurassic well at a more optimal location will be considered.

Tawke # 12 ha now been completed as a Cretaceous producer. The rig will undertake a work-over in Tawke # 5 before it will be moved to the Tawke # 11 location to drill and test the Cretaceous reservoir section.

Dohuk PSC Area
The Summail Extension # 1 well is currently drilling at 3.539 meters meters, and is planned to be drilled to a total depth of 4.000 meters. Seismic acquisition is also ongoing in the Dohuk license area, and is approximately 50 % completed.

Erbil PSC Area
An open hole test in the Hawler#1 well was conducted in the Jurassic interval delivering approximately 9 000 barrels of oil and 11 million standard cubic feet per day through a 1" choke size. These flow rates are assumed to be restricted by surface test equipment.

After completing the open hole test in the Jurassic interval some equipment was left in the well bore. After failing to recover this equipment the well will now be plugged back and testing of the Cretaceous interval will be undertaken. After completing the full test program in Hawler # 1 an appraisal well is scheduled to be drilled targeting both the Cretaceous and the Jurassic intervals.