20/01-2009 08:33:00: (DNO) DNO International ASA - Fourth quarter and December Production and Drilling Report
DNO is today reporting fourth quarter and December 2008 production
together with a summary of ongoing drilling activities.
DNO's production in 2008 was 15,482 bopd, which was 482 bopd above
the 2008 guided level of 15,000 bopd. The average realized oil price
for the full year was 66 USD/bbl.
In Yemen, the Raoq #1 exploration well has encountered strong
indications of hydrocarbons while drilling the Basement section. As a
result of these observations an extensive test program will be
carried out in the well.
PRODUCTION REPORT
Yemen production
DNO's WI production from Yemen in December was 7,778 down from 8,019
bopd in November. Fourth quarter WI production from Yemen was 8,210
bopd compared to 8,836 bopd in third quarter. Fourth quarter
production was lower due to unscheduled maintenance work at the
pipeline on block 32 in November, as well as required well workover
operations.
The YTD production to DNO from Yemen is 9,330 bopd, which is above
the guided level for the full year of 9,000 bopd.
DNO's oil production is reported as follows:
(Bopd) Q3 2008 Q4 2008 Dec YTD 2008
Working interest (WI) 8,836 8,210 7,778 9,330
Net entitlement (NE) 5,122 5,344 5,294 5,937
Achieved oil price (USD/bbl) 115 52 36 96
The production figures (WI and NE) include crude oil consumed in the
operation of the Company's production s facilities, at an accumulated
volume of 283 bopd during December 2008 and 329 bopd during fourth
quarter.
DNO's revenue entitlement from the Tawke test production
The revenue entitlement from Tawke test production is reported as
follows:
(MNOK) Q3 2008 Q4 2008 Dec YTD 2008
Kurdistan/Iraq 38.6 53.0 15.9 288.7
Due to temporary stop in production from Tawke in Q3, revenue
entitlement in Q4 increased with 37 % compared to Q3 revenue
entitlement. Achieved oil price in Kurdistan was at a constant level
in 2008 despite significant oil price fluctuations in the market.
SUMMARY OF ONGOING DRILLING ACTIVITIES
YEMEN
Block 32
Rig 905 spudded Tasour #25 development well 20 December 2008. The
well was completed as a producer 12 January 2009, and brought on
stream with an initial rate of 2,000 bopd.
Operations on rig 905 will be put on hold temporarily, awaiting
preparations for the next wells in the drilling campaign to be
completed. The next well is scheduled to be drilled on the Nabrajah
field with estimated spud mid March 2009.
Block 53
Exploration well Raoq #1 is being drilled with rig 919, and is
exploring the resource potential on a separate Basement structure to
the south of the Bayoot area.
The well has now reached TD in Basement, and logging has commenced.
Strong indications of hydrocarbons have been encountered while
drilling the Basement section. The forward plan is to complete the
logging program and prepare for an extensive test of the well. If the
test confirms commercial flow rates, the well is planned to be
equipped with facilities for long term test production, including
facilities for tanker trucking to nearby infrastructure.
OTHER ACTIVITIES
KURDISTAN
Tawke PSC
As previously announced, KRG has authorized DNO to proceed with the
remaining activities in preparation for export. These activities have
been pursued by DNO in close cooperation with KRG and NOC, and the
final tie-in construction work to the export pipelines is progressing
well.
DNO International ASA
20 January, 2009
DNO is today reporting fourth quarter and December 2008 production
together with a summary of ongoing drilling activities.
DNO's production in 2008 was 15,482 bopd, which was 482 bopd above
the 2008 guided level of 15,000 bopd. The average realized oil price
for the full year was 66 USD/bbl.
In Yemen, the Raoq #1 exploration well has encountered strong
indications of hydrocarbons while drilling the Basement section. As a
result of these observations an extensive test program will be
carried out in the well.
PRODUCTION REPORT
Yemen production
DNO's WI production from Yemen in December was 7,778 down from 8,019
bopd in November. Fourth quarter WI production from Yemen was 8,210
bopd compared to 8,836 bopd in third quarter. Fourth quarter
production was lower due to unscheduled maintenance work at the
pipeline on block 32 in November, as well as required well workover
operations.
The YTD production to DNO from Yemen is 9,330 bopd, which is above
the guided level for the full year of 9,000 bopd.
DNO's oil production is reported as follows:
(Bopd) Q3 2008 Q4 2008 Dec YTD 2008
Working interest (WI) 8,836 8,210 7,778 9,330
Net entitlement (NE) 5,122 5,344 5,294 5,937
Achieved oil price (USD/bbl) 115 52 36 96
The production figures (WI and NE) include crude oil consumed in the
operation of the Company's production s facilities, at an accumulated
volume of 283 bopd during December 2008 and 329 bopd during fourth
quarter.
DNO's revenue entitlement from the Tawke test production
The revenue entitlement from Tawke test production is reported as
follows:
(MNOK) Q3 2008 Q4 2008 Dec YTD 2008
Kurdistan/Iraq 38.6 53.0 15.9 288.7
Due to temporary stop in production from Tawke in Q3, revenue
entitlement in Q4 increased with 37 % compared to Q3 revenue
entitlement. Achieved oil price in Kurdistan was at a constant level
in 2008 despite significant oil price fluctuations in the market.
SUMMARY OF ONGOING DRILLING ACTIVITIES
YEMEN
Block 32
Rig 905 spudded Tasour #25 development well 20 December 2008. The
well was completed as a producer 12 January 2009, and brought on
stream with an initial rate of 2,000 bopd.
Operations on rig 905 will be put on hold temporarily, awaiting
preparations for the next wells in the drilling campaign to be
completed. The next well is scheduled to be drilled on the Nabrajah
field with estimated spud mid March 2009.
Block 53
Exploration well Raoq #1 is being drilled with rig 919, and is
exploring the resource potential on a separate Basement structure to
the south of the Bayoot area.
The well has now reached TD in Basement, and logging has commenced.
Strong indications of hydrocarbons have been encountered while
drilling the Basement section. The forward plan is to complete the
logging program and prepare for an extensive test of the well. If the
test confirms commercial flow rates, the well is planned to be
equipped with facilities for long term test production, including
facilities for tanker trucking to nearby infrastructure.
OTHER ACTIVITIES
KURDISTAN
Tawke PSC
As previously announced, KRG has authorized DNO to proceed with the
remaining activities in preparation for export. These activities have
been pursued by DNO in close cooperation with KRG and NOC, and the
final tie-in construction work to the export pipelines is progressing
well.
DNO International ASA
20 January, 2009
