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DNO International Provides Operational Update on Activities in Oman

18.07.2012  |  Globenewswire Europe
Oslo, 18 July 2012 -- DNO International ASA, the Norwegian oil and gas company,
today provides a drilling and operations update on its activities in the
Sultanate of Oman as follows:

The Company has completed drilling of the West Bukha-5 well in offshore Block 8
and is preparing to resume operations on the West Bukha-4 well whose top hole
section was previously drilled.

Results from the initial flow test of West Bukha-5 confirm the presence of oil
in the Thamama reservoir, with an estimated flow capacity of 1,500-2,000 barrels
per day.

Samples and measurements taken during the initial test flow period indicate an
oil gravity of 35 degree API and a gas-oil ratio of 5,000 standard cubic
feet/barrel. While these measurements are somewhat uncertain as the well cleanup
process has not been completed and only about a third of the cumulative spent
acid recovered, they are consistent with the values observed in neighboring
wells. Cleanup operations will be resumed and the well put on production later
this summer once normal offshore pipeline operations resume.

West Bukha-5 is the first of a three well development drilling campaign in Block
8. Drilled to a total depth of 5,200 meters, including a 700 meter horizontal
section with good fracture indications, West Bukha-5 is the deepest yet for the
Company in Oman. Three intervals in the horizontal section were acidized and
stimulated. The shallower Wasia interval has not been perforated at this stage.

Following completion of West Bukha-4, the Noble Roy Rhodes rig will move to
drill a third well on the nearby Bukha gas condensate field.

As reported previously, during a routine pigging operation a blockage occurred
in the 12-inch pipeline connecting the West Bukha and Bukha platforms in late
March. Efforts to clear the pipeline have been unsuccessful and a decision has
been taken to replace a 4.3 kilometer section of the blocked pipeline.
Production from the shut-in West Bukha field is now expected to be restored
within six weeks. Prior to the blockage, the West Bukha field produced about
7,000 barrels per day of oil and liquids and about 25 million cubic feet per day
of gas. Operations at the Bukha field have continued without interruption with
daily deliveries of averaging over 20 million cubic feet of gas and 1,000
barrels of liquids.

The temporary halt in production from the West Bukha field will result in lower
production volumes in the second and third quarter of the year. Once production
is restored and West Bukha-5 brought on stream, the Company believes that the
overall cash from Block 8 operations in 2012 should not be materially impacted
with the accelerated recovery of the deferred production.

--- DNO International ASA is an Oslo-listed, Middle East and North Africa
focused oil and gas company holding stakes in 17 licenses in various stages of
exploration, development and production both onshore and offshore in the
Kurdistan Region of Iraq, the Republic of Yemen, the Sultanate of Oman, the
United Arab Emirates and the Tunisian Republic. http://www.dno.no ---

Oslo, 18 July 2012

DNO International ASA
Corporate Communications

Queries: Tom Bratlie (Tom.Bratlie@dno.no or tel: +47 905 21 904)

This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)




This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: DNO International ASA via Thomson Reuters ONE
[HUG#1627486]




Unternehmen: DNO International ASA - ISIN: NO0003921009
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