On the weekend production test 1B, over the upper section of the Qishn S2 Sandstone of the Neheb-1 well in Block 43, tested the interval between 2,000.5 metres and 2,016 metres flowed formation water at approximately 3,446 barrels per day. No oil or gas was produced during the flow period.

A review of the well and production test data is now being undertaken by Block 43 Operator, DNO, in order to fully understand the results, given that the well encountered elevated gas readings and oil shows when drilling and subsequent MDT pressure data indicated a potential oil gradient, yet it did not flow oil or gas.

Previously production test 1A flowed formation water at a rate of 4,100 barrels per day. The test was run between 2007.5 and 2016 metres and no oil or gas was produced during the test over the lower part of the possible oil bearing zone in the Qishn S2 Sandstone. The Neheb-1 well will now be temporarily suspended.

The Neheb-1 well is the first of two additional exploration wells the Block 43 Joint Venture agreed to drill following the oil discovery at Nabrajah-1 in March 2004. The well is 17 kilometres from the Nabrajah-1 location and is testing a four-way dip closed structure in the hanging wall immediately south of the Nabrajah fault block.

Activity is planned to recommence in mid July 2004 with the drilling of two appraisal wells on the Nabrajah discovery, followed by at least one additional exploration well towards the end of 2004.

The Block 43 Joint Venture will also acquire a minimum of 60 kilometres of new 2D seismic data over the Nabrajah structure and other potential exploration targets in the block.

The participants in this well are DNO ASA 50% (operator), Oil Search (Yemen) 25%,

First Calgary Petroleums 10%, The Yemen Company 15%.