DNO International ASA - March Production and Dr...

DNO is pleased to report 1st quarter 2008 production figures and a
summary of ongoing drilling activities.

DNO is pleased to report 1st quarter 2008 production figures and a
summary of ongoing drilling activities.


PRODUCTION REPORT
 
The Working Interest (WI) production to DNO in the first quarter  was
17,452  bopd, which up 11 % compared to the previous quarter.
 
The Net Entitlement (NE) production to  DNO in the first quarter  was
14,403 bopd, with an associated realized oil price of 61.96 USD/bbls.
 
 
Working Interest (WI) Production.
 
 
DNO's oil production (WI) for 1st quarter is reported as follows:
 
 

(Bopd)         January February March     Q1      Additional     Q1
                2008     2008    2008  Produced   volume *)    Total
                                         2008                   2008
Yemen          11,054   10,303  9,746   10,369        0        10,369
Kurdistan/Iraq  6,301   7,457   4,852   6,176        907       7,083
Total          17,355   17,760  14,598  16,545       907       17,452

 
*) As part of the change in Tawke PSC terms DNO will be entitled an
additional volume of 82,558 barrels produced from start of production
in June 2007 until 12th March 2008. This additional volume is booked
in 1st quarter 2008 (82,558 / 91 days = 907 bopd).
 
 
The gross production from the Tawke field in the 1st quarter was
6,872 bopd. This is slightly above the plan and up 50 % compared to
the previous quarter.
 
DNO's share of the gross production from Tawke in the 1st quarter is
95 % from 1st January until 12th March, and 60 % thereafter. This
arrangement will remain in effect until the gross revenues from Tawke
reach USD 484 million, or USD 291 million net to DNO. Thereafter the
standard PSC terms will apply.
 
Tawke production was lower in March due season holidays. This
combined with the change of PSC terms resulted in lower production to
DNO from the Tawke field in March.
 
 
Net Entitlement (NE) Production.
 
Net entitlement production for 1st quarter 2008 is shown in the table
below:
 

(bopd)    January February March     Q1     Additional volume    Q1
           2008     2008    2008  Produced         (B)         Total
                                    2008                        2008
Yemen      7,884   7,367   6,713   7,320            0          7,320
Kurdistan  6,301   7,457   4,852   6,176           907         7,083
Total     14,185   14,824  11,565  13,496          907         14,403

 
 
The production figures (WI and net entitlement) include crude oil
consumed in the operation of the Company's production s facilities,
at an accumulated volume of 306 bopd during 1st quarter 2008. (Crude
oil consumed was 301 bopd during January 2008, 316 bopd during
February 2008 and 303 during March 2008).
 
 
SUMMARY OF ONGOING DRILLING ACTIVITIES
 
Yemen
 
Block 32
 
Rig 905 was moved from Maleen # 1 to the Godah field in mid-March to
drill the Godah # 9 development well. The Godah # 9 well was spudded
on 28th March 2008 and the well is now put on production with an
initial average gross flow of approximately 340 bopd. The rig will
now be moved to Block 47.
 
Block 43
 
Nabrajah # 17 was spudded 7th March and drilled as a Qishn producer.
Nabrajah # 17 is now brought on stream with an initial average gross
flow of approximately 700 bopd. Rig 908 will now be moved to drill
the Mesari # 1 exploration well within the same block.
 
Block 47
 
Rig 900 spudded well Sharnah # 1 on 28th March as the second
exploration well in the block. Good indications of oil in the Qishn
reservoir were observed both during drilling and from wire line logs.
7 "casing is currently being installed and the well will be tested.
Once the testing is completed the rig will move to the Yaalen # 1 oil
discovery well for testing. In addition the Yaalen # 2 well is
expected to be spudded in the near future with rig 905 currently on
move from Block 32.
 
 
Block 53
 
Following completion and testing the Bayoot SW # 5 well rig 919 was
moved to the Sharyoof field to drill two development wells. The
Sharyoof # 29 development well was spudded 20th April.
 
 
Kurdistan Region of Iraq
 
Tawke # 11 within the Tawke PSC,  is scheduled to be re-entered
within 1 week using the carrier rig to drill and test the Cretaceous
reservoir section.
 
The Hawler # 1 exploration well within the Erbil PSC area is still
undergoing testing and the Summail Ext. # 1 exploration well has not
yet reached the final drilling targets.
 
 
DNO ASA
25th April, 2008
 

Contact:                                              
 
Media:                                                
Helge Eide, MD DNO ASA                 Telephone:    [phone]
Ketil Jørgensen, Crux Communication    Telephone     [phone]
(Norway)      
Ben Willey, Buchanan Communications    Telephone:    [phone]
(UK)                                    
                                                      
Investor Relations:                                   
Haakon Sandborg, CFO DNO ASA           Telephone:    [phone]
Robert Arnott, Advisor (UK)            Telephone     +44 207 839 7764