DNO International ASA - DNO is pleased to annou...

The Tawke PSC contract area has now been extended to include an area
to the west of The Tawke Field including the West Dohuk Structure,
increasing DNO's working interest in this structure by 15 % to 55 %.
In return for this extension of the Tawke PSC contract area DNO will
pre-relinquish most of the Dohuk area, except for the Summail
Prospect and the Summail Extension area in the southern part of the
current Dohuk contract area. In addition all Petroleum Costs incurred
within the Dohuk area to date will be recovered from the Tawke
production. This is currently estimated to be in the range of USD 40
million.


Commenting on this Helge Eide, Managing Director of DNO International
ASA said:

"With these amendments in place DNO can fully focus on preparing the
Tawke field for export and continue the appraisal and delineation of
the Hawler discovery towards development. This combined with the two
retained prospects brings a good balance between exploration
opportunities, field development and production to our asset
portfolio in the Kurdistan Region of Iraq"

The test production from Tawke has been an important factor for
preparing export of oil from Tawke. The reservoir information
acquired during the test production to date has provided essential
information in order to optimize the production strategy and
reservoir management for maximizing recovery of oil from the field.
During the temporary halt in test production reported last month DNO
has initiated an extensive data acquisition program for acquiring new
reservoir pressure data across the field during shut-in and
subsequent start-up.

The test production has also allowed DNO to test and commission the
Central Processing Facilities (CPF) at Tawke, and the 42 km 12"
pipeline connecting the CPF to the location of the tie-in point at
the Northern strategic pipeline system was commissioned earlier this
year.

KRG has advised DNO that test production will recommence next week
and equipment is now being installed in several wells to monitor the
pressure behavior during the next period of test production.

KRG has also authorized DNO to proceed with the remaining activities
in preparation for export. This includes preparatory work for the
physical tie-in to the Northern strategic pipeline and to perform a
compatibility study of the Tawke oil for comparison with the other
crude oil qualities currently being transported through the pipeline
system.


DNO International ASA
12 September 2008
Media contacts:
Helge Eide, Managing Director, DNO International ASA; [phone]
Lars Erik Lund, Crux Kommunikasjon (Norway); [phone]
Ben Willey, Buchanan Communications (UK); [phone]
Nick Melson, Buchanan Communications (UK); [phone]

Investor Relations contacts:
Haakon Sandborg, CFO, DNO International ASA; [phone]