DNO International ASA provides the following update on well testing operations being undertaken in ongoing exploration wells in the Republic of Yemen and Iraq.

Gabdain-1, Block 72, Republic of Yemen The Gabdain-1 basement exploration well commenced drilling on 19 November, 2010. The well was drilled to total depth of 3,485 meters measured depth (approximately 636 meters measured depth into the Basement). Hydrocarbons were observed while drilling through the Kohlan sandstone overlaying the basement interval and an oil sample was recovered from the Kohlan using a wire line MDT tool prior to running intermediate casing.

Hydrocarbon charged fractures were also observed while drilling the upper basement interval. An open hole test was conducted on the basement interval, but no flow to surface was achieved due to the limited fractures encountered in the wellbore at this location.

Following the basement test, a 15 meter interval was perforated in the Kohlan. The Kohlan was placed on test using a small electric submersible pump. The well continued to clean up and was producing at an unstabilized rate of approximately 130-180 barrels per day of 39° API oil at the end of the five-day test.

The presence of oil shows in the basement and the Kohlan demonstrates a working hydrocarbon generation and migration system. Studies are underway to determine if a more optimal drilling location is feasible.

The Block 72 partners have approved a second exploration well, Gabdain-2, subject to Government approval. DNO is now preparing to suspend Gabdain-1 and move to the Gabdain-2 location. The Gabdain-2 exploration well will drill a shallow Qishn formation prospect.

Bastora-1, Kurdistan Region of Iraq Drilling of exploration well Bastora-1 in the Erbil license commenced on 7 September. The well has been drilled to total depth of 3,600 meters. As previously reported hydrocarbons were observed while drilling through several of the prospective intervals.

Two tests were undertaken in the lower part of the Cretaceous interval, both flowing water. A third test in the Cretaceous has now been completed. A flow rate of 500 - 600 barrels per day of 16-18 API was achieved during the test. The test was undertaken after acid stimulation of the perforated interval, and the well was flowed using a submersible jet pump. The well flow was not fully stabilized during the test. Various options for improving the flow rate from this zone at a later stage will be investigated.

Additional three tests are planned to be undertaken in the well. Once the full test program is completed and the results are evaluated, a further update will be reported to the market.

Tags: DNO International