DNO International Taps Additional Oil in Benenan Field

Source: www.gulfoilandgas.com 11/6/2012, Location: Middle East

DNO International ASA, the Norwegian oil and gas company, announced that the Benenan-3 well drilled on its Erbil license, Kurdistan region of Iraq, encountered an additional 210 meter oil column in the Najmeh reservoir which is expected to more than double the Benenan field's gross 2P oil-in-place volumes from 300 million barrels to an estimated 600-700 million barrels.

The well produced 800-1,000 barrels per day of 12-16 API gravity oil from an open hole test in the Lower Najmeh interval, having earlier confirmed movable oil from an open hole test in the Bekhme formation. The Bekhme formation is currently producing in the Company's Bastora-1A long-term test well in the neighboring Bastora field and the Upper Najmeh previously tested as productive in the Benenan field discovery and appraisal wells.

Benenan-3 was originally designed as a horizontal producer in the Upper Najmeh formation with a deeper deviated exploratory probe. The well will now be completed as a deviated well capable of producing from several Najmeh intervals as well as from the Bekhme formation. The Benenan and Bastora field development program is continuing with a second development well scheduled for mid-2013. DNO International holds a 40 percent working interest and is the operator of the Erbil license.

"Like Tawke before it, Benenan is starting to grow as we explore and appraise the field," said Bijan Mossavar-Rahmani, DNO International's Executive Chairman. "We are excited to continue to build reserves, production and value across our licenses in the Kurdistan region of Iraq."

Revised estimates of recoverable reserves for the Benenan field are under preparation and will be reported when completed. Further updates on DNO International's Kurdistan operations will be provided at the Company's third quarter presentation on 15 November 2012.


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