DNO International ASA - February 2010 Productio...

DNO is today reporting February 2010 production and a summary of ongoing drilling and well operations. PRODUCTION REPORT DNO's working interest production was 11,811 bopd and DNO's net entitlement production was 7,893 bopd in February 2010. Yemen production DNO's working interest (WI) production from Yemen in February 2010 was 7,371 bopd and DNO's net entitlement production was 4,933 bopd. Production from Yemen is reported as follows: (Bopd) FY 2009 Q4 2009 Jan-10 Feb-10 ---------------------------------------------------------------------- Gross production 18,836 19,237 19,682 18,677 DNO's working interest (WI) 7,749 7,655 7,719 7,371 DNO's net entitlement (NE) 5,358 4,738 4,914 4,933 Achieved oil price (USD/bbl) 61 76 83 76 The production figures include crude oil consumed in the operation of the Company's production facilities, at an accumulated WI volume of 283 bopd and NE volume of 187 bopd in February 2010. The production performance for February is in accordance to expectations. In Block 53, operated by Dove Energy, the Bayoot Field production is continuing to increase primarily due full utilization of the ESP-pump capacity in the wells. Gross production from Bayoot is now more than 6,000 bopd. Kurdistan production DNO's working interest (WI) production from Kurdistan in February 2010 was 4,440 bopd and DNO's net entitlement production was 2,960 bopd. Production from Tawke is reported as follows:  (Bopd) FY 2009 Q4 2009 Jan-10 Feb-10 --------------------------------------------------------------------- Total gross production 15,291 6,584 6,032 4,934 DNO's working interest (WI) 13,762 5,926 5,429 4,440 DNO's net entitlement (NE) 9,186 3,959 3,619 2,960 The production figures include crude oil consumed in the operation of the Company's production facilities, at an accumulated WI volume of 155 bopd and NE volume of 103 bopd in February 2010. The deliveries to the local market are varying from month to month as previously reported. The lower volumes for February was due to several days of halt in deliveries during that month. SUMMARY OF DRILLING AND WELL OPERATIONS Yemen As previously reported the Bayoot-7 basement development well in Block 53 was put on stream 12 February and is now producing at 160 bopd. Spud date for Bayoot-8 basement development well in Block 53 was 26 February and drilling operations are progressing as planned. The total depth of the well is scheduled to 3907m, of which 670 meters is planned as an open hole reservoir section in fractured Basement. The Nabrajah-10S/S2 well was completed as production well in Block 43 in January and brought on stream for clean-up and test production. The well confirmed movable oil 186 m vertically deeper than Nabrajah-5, which has produced from the same reservoir for more than 4 years. Alternative options for improving oil production and recovery from the Shuqra formation are being evaluated. Drilling of the appraisal well Yaalen-3 in Block 47 is expected to commence in ultimo March. Kurdistan Testing of the Erbil-2 well with Sindi-1 rig was completed in March. The preliminary results confirmed only oil in the upper Najmeh reservoir, initially testing in the order of 200 bopd of 12-14 API oil. The well is now suspended and the rig has returned to Tawke. Evaluation of all test results will be presented in an updated appraisal program and a forward plan for the Erbil license will be filed with the Ministry of Mineral Resources (MNR) by June this year. Great Wall Rig-10 is still novated to Heritage and the rig is expected to return to DNO end July 2010 for drilling of the Summail-1 exploration well in the Dohuk PSC. DNO International ASA 29 March, 2010 This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act) [HUG#1398512]
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