Oil Search confirms Middle East Success

Oil Search and its partners in the Nabrajah-1 well in Block 43 Republic of Yemen have suspended as a potential future oil producer following the weekend's successful third drill stem test (DST-3) over the upper part of the Qishn S2 Sandstone.

The interval flowed at a stabilised rate of 1,973 barrels per day of 25.3 degree API oil, 2.420 MMscf/d of gas and 375 barrels of water per day.

DST-3 confirms the presence of an oil column in the Qishn S2 Sandstone reservoir in the Nabarajah-1 well, while DST-2 also flowed oil at an average rate of 544 barrels per day of 24 degree API oil, with 7,074 barrels per day of water and 0.23 MMscfd gas during a 9 hour flow period.

As a result of the encouraging test results from the Qishn S2 Sandstone, a two well appraisal drilling program will be conducted in order to determine the size and commercial viability of the Nabrajah discovery. The appraisal drilling program is likely to commence towards the end of the second quarter of 2004 once a suitable drilling rig has been contracted by Block 43 Operator, DNO.

In addition to the appraisal program, two further exploration wells will be drilled in Block 43 during 2004. The first well, Naheb-1, will be drilled immediately following the suspension of the Nabrajah-1 well using the same drilling rig17 kilometres east-south-east of Nabrajah-1. The objective of the well will be to test the same Qishn S2 Sandstone reservoir found to be oil bearing in Nabrajah-1.

The Nabrajah-1 well was the second of two farm-in wells that Oil Search is participating in to earn a 25% working interest (29.42% paying interest) in Block 43.

Participants in this well are DNO ASA 50%, operator, Oil Search (Yemen) 25%, First Calgary Petroleums 10% and The Yemen Company 15%, carried.