DNO International ASA - August Production and D...

DNO is pleased to report August 2008 production figures and a summary
of ongoing drilling activities.


PRODUCTION REPORT

DNO's Working Interest (WI) production in August was 8,349 bopd
compared to 20,584 in July. The decrease in WI production in August
is due to temporary halting of test production from the Tawke field.
The lower production in Yemen in August is primarily due to 3 days
shut in for regular maintenance and an update to the CPF at the
Nabrajah field in Block 43. The year to date WI production to DNO at
end of August was 17,812 bopd, which is well ahead of plan.

As previously reported the KRG put temporarily on hold all the
production for the local market in the Kurdistan Region, to enable
the local authorities to review the licensing, compliances and
uniformity of procedures applied to the small topping plant owners in
order to regulate the manner that crude oil is supplied to them,
including crude oil pricing issues and the quality of the products
generated by the topping plants. During this period, DNO has
installed pressure gauges for recording of updated static pressure
information across the field. In addition pressure gauges have also
been installed in new wells for monitoring pressure development
during the next stage of test production. This will provide important
information for the long term production potential as well as
production sustainability of these wells.

The next stage of test production from Tawke has now resumed, and the
volumes produced will be lifted by KRG who will also process the
crude oil for local needs. Future reporting of test production to the
Company from Tawke or any other fields, will be based on revenue
entitlements rather than volumes, as test production does not reflect
the normal operational performance or production capacity of the
fields.

Working Interest (WI) Production.

DNO's oil production (WI) is reported as follows:

    (Bopd)         Q1 2008 *) Q2 2008 July 2008 Aug 2008 YTD 2008
    Yemen            10,369    9,924    9,393    8,337    9,821
    Kurdistan/Iraq   7,083    10,228   11,191      11     7,991
    Total            17,452   20,151   20,584    8,349    17,812


*) As part of the change in Tawke PSC terms DNO was entitled an
additional volume of 82,558 barrels produced from start of production
in June 2007 until 12th March 2008. This additional volume was booked
in 1st quarter 2008


Net entitlement (NE) Production and Achieved Oil Price

Net entitlement production is shown in the table below:


(Bopd)                    Q1 2008 Q2 2008 July 2008 Aug 2008 YTD 2008
Yemen                      7,320   5,979    5,416    4,810    6,259
Kurdistan/Iraq             7,083   6,830    7,457      8      6,138
Total                     14,403  12,809   12,873    4,818    12,397

Achieved oil price         61.96   71,46    70,87    111,04   69,11
(USD/bbl)


The production figures (WI and net entitlement) include crude oil
consumed in the operation of the Company's production facilities, at
an accumulated volume of 309 bopd during August.



SUMMARY OF ONGOING DRILLING ACTIVITIES


YEMEN

Block 32

Rig 905 was moved from block 47 to block 32, to drill the Tasour
#17S development well. The well did not encounter hydrocarbons, and
the well was subsequently plugged and abandoned. The rig was moved to
drill Godah #10 development well, which has now been completed as an
oil producer.

Block 43

Following the Nabrajah #18 well , Rig 908 was moved to the eastern
part of the Block to drill the Suwehed #1 exploration well. The well
has now reached its total depth of 1.566 meters. The well penetrated
the Qishn target deeper than prognosis and indications of
hydrocarbons were encountered in the top of the Qishn reservoir. The
well was not tested and further evaluation of the Suwehed structural
complex will be undertaken prior to deciding on the drilling of
additional wells on this structure.

Block 47

On the Yaalen #1 discovery well, the test programme was completed and
the well was temporarily abandoned 29 August 2008. Oil was confirmed
by wire line fluid sampling both in Yaleen # 1 and Yaleen # 2.
However, due to inconclusive test results from both these wells, the
Yaleen area will be re-evaluated after completing a 3-D seismic
survey. Contingent on the results from this evaluation re-entry of
the wells for further testing will be considered. The Rig 900 has now
been re-located to block 53 to undertake work over operations.

As previously reported the Sharnah # 1 exploration well, which was
drilled on another structure in Block 47, flowed 600 bopd during
testing and was thereafter completed as a potential future production
well.


Block 53

Rig 919 drilled and completed the  Bayoot #6 exploration well 17 June
to 29 August 2008. The well encountered oil in the Basement and has
been completed as an oil producer. The rig was then moved to the Raoq
#1 exploration well location, to drill a different Basement structure
to the south of the Bayoot area.


KURDISTAN REGION OF IRAQ

Tawke PSC area

The Sindy rig completed the Tawke # 10 appraisal well as a future oil
producer, after which the rig was moved to Tawke #9 well location.
The Tawke #9 well was spudded 23 August 2008. The well is now
completed as a future oil producer, without prior testing.

The Tawke # 15 well is being drilled as a combined Cretaceous
delineation well and Jurassic/Triassic exploration well. Drilling has
taken longer than planned and the well is expected to penetrate the
Jurassic interval during the coming weeks.

Erbil PSC Area

The Hawler #2 well is primarily targeting Jurassic and Triassic
intervals to further explore the oil discovery in Hawler #1 well. A
7" liner is now installed into the Jurassic interval which produced
9,000 bopd from a test in Hawler # 1. The forward plan is to further
deepen the well into the lower Jurassic and Triassic intervals, and
then temporarily abandon the well. As the reservoir pressure is
likely to by higher than originally expected equipment with higher
pressure rating is required. Therefore testing of the well is planned
to be undertaken at a later stage.

The 3-D survey across the Hawler structure has now been completed.
This together with the well results will form the basis for the
evaluation of the resource potential and the forward plans for the
Hawler oil discovery.

It should be noted that the name "Hawler" is likely to be replaced
with another name for this structure in the future, but the new name
is yet to be decided.


MOZAMBIQUE

Inhaminga block

The Sangussi #1 exploration well was spudded on 4 July 2008. The well
reached the planned total depth without encountering hydrocarbons and
the rig was released from DNO. Further technical work and prospect
evaluation is currently undertaken to investigate additional
prospects potential within this large Block.


DNO International ASA
25th September 2008




Contact:

Media:
Helge Eide, MD DNO ASA                 Telephone:    [phone]
Lars Erik Lund, Crux Communication     Telephone     [phone]
(Norway)
Ben Willey, Buchanan Communications    Telephone:    [phone]
(UK)

Investor Relations:
Haakon Sandborg, CFO DNO ASA           Telephone:    [phone]