DNO said it reached a test production rate of 5,900 barrels of oil per day flowing from its Salsala-1 exploration well in Yemen.
The company said it started drilling the well in July. It cost $10 million to complete and test the well.
DNO Executive Chairman Bijan Mossavar-Rahmani said the Salsala-1 well was on the fast track to development. An extended production test is scheduled for early 2014.
"Yemen continues to be an important focus area for DNO International and this discovery reflects our commitment to continue to build on our in-country knowledge, expertise and investments," he said in a statement Wednesday.
The U.S. Energy Department said energy production from Yemen has been in decline since 2001 because of a lack of new investments. Its production capacity is small compared to other oil and gas-producing countries in the region, though it's strategically situated near one of the busiest shipping lanes in the world.
Yemen's energy infrastructure has been the target of frequent insurgent attacks.
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