DNO's oil production from Norway and Yemen were as follows (BOPD):
August YTD (8 months)
Norway 1.545 1.580
Yemen 13.678 12.347
Total 15.223 13.927
The increase in production from July was primarily due to higher production from Yemen caused by higher production volumes from Nabrajah. The development in the Yemen production during the coming months is dependent on the stepwise increase of Nabrajah production, the effect of the infill drilling program on Sharyoof and the performance of the Tasour Field.
Nabrajah:
The increase in gross field capacity on Nabrajah from 5 000 BOPD to 15 000 BOPD was expected to be ready in the beginning of September. This is now expected to take place during the last week of September due to late arrival of rental equipment from the contractor. As previously reported, the production from Nabrajah is currently sharing the tie-in transport capacity with the Tasour Field, allowing a combined total capacity of 25 000 BOPD and priority to the Tasour production. As reported below, the Tasour Field is currently producing ca. 13 000 BOPD (gross). The Nabrajah production export level is therefore dependent on both Tasour production level and Nabrajah well capacity. Nabrajah is currently producing 4 700 BOPD (gross) from 3 Qishn wells. As the processing capacities are to be expanded by the end of September, production from Nabrajah is expected to increase due to higher takeout from the 3 first wells and two more Qishn wells will be put on stream.
Depending on the gas handling capacities and possible allowance for gas flaring during a short test period, early start-up of Nabrajah-5 basement production could contribute with additional Nabrajah production volumes in November. More substantial contribution from Basement production is expected from mid December, after the gas injection facilities are installed. Delivery of equipment from USA for this upgrade has been delayed due to the hurricane Katrina. Further update on Nabrajah production performance will be given in the September production report due mid October.
Drilling of Nabrajah # 8 commenced 6 September and is currently drilling at 824 meters. The well is planned to drill more than 1000 meters into basement - which is more than 600 meters deeper than Nabrajah # 5. As previously reported this could have a impact on Nabrajah basement reserves, if this 600 meters or part of it containes oil.
Tasour Update:
Tasour # 19 was brought on stream on 26 August at an initial rate of ca. 1 300 BOPD. This was lower than anticipated due to higher than expected water production. This could be related to a well completion problem, which is currently being investigated. The Tasour 19 production reduced reservoir pressure in the area and two of the offsetting producers experienced a loss of approximately 1,100 BOPD. The small net gain of 200 BOPD from Tasour 19 combined with natural field declines has resulted in a current production level of approximately 13 000 BOPD from the Tasour field (gross). The next infill / appraisal well within the Tasour area is planned 1st Quarter 2006.
Drilling of an exploration well with a basement target located at the north-west corner of Block 32 is planned during 4th Quarter 2005.
Sharyoof Update:
After the infill well, Sharyoof # 15 was brought on stream Sharyoof gross production has increased to ca. 20 000 BOPD. Sharyoof # 16, a second infill well currently being completed is expected to be brought on stream within the following week. Thereafter two additional development wells will be drilled on Sharyoof.
Glitne Update:
The Glitne field delivered stable production during August at slightly above 15 000 BOPD (gross). In September there has been a one-week shut down for maintenance purposes. This is now completed and the field is back on stream.