DNO UK Ltd., a 100 % subsidiary of DNO ASA, has entered into an agreement with Peak Well Management Ltd. for the use of the semi-submersible drilling unit Bredford Dolphin for a one well program on Block 211/22B on UKCS . Block 211/22B hosts an upper Jurassic prospect named Jaguar and the spud date of the well is estimated at around mid January 2006.
DNO secured a 60% working interest and operatorship in Block 211/22B earlier this year through a farm-in agreement with Elixir Petroleum Ltd. (Elixir) by funding 92,5% of the costs of drilling one exploration well on the Jaguar Prospect. Elixir retained a final 40% working interest in the block.
Unrisked resource potential given oil discovery is estimated by DNO in the range of 54-280 million barrels full field, with a most likely estimate of 138 million barrels - which is 83 million barrels net to DNO.