Status of well testing operations being underta...

Gabdain-1, Block 72, Republic of Yemen

The Gabdain-1 basement exploration well commenced drilling on 19 November,
2010. The well was drilled to total depth of 3,485 meters measured depth
(approximately 636 meters measured depth into the Basement). Hydrocarbons were
observed while drilling through the Kohlan sandstone overlaying the basement
interval and an oil sample was recovered from the Kohlan using a wire line MDT
tool prior to running intermediate casing.

Hydrocarbon charged fractures were also observed while drilling the upper
basement interval. An open hole test was conducted on the basement interval, but
no flow to surface was achieved due to the limited fractures encountered in the
wellbore at this location.

Following the basement test, a 15 meter interval was perforated in the Kohlan.
The Kohlan was placed on test using a small electric submersible pump. The well
continued to clean up and was producing at an unstabilized rate of approximately
130-180 barrels per day of 39° API oil at the end of the five-day test.

The presence of oil shows in the basement and the Kohlan demonstrates a working
hydrocarbon generation and migration system. Studies are underway to determine
if a more optimal drilling location is feasible.

The Block 72 partners have approved a second exploration well, Gabdain-2,
subject to Government approval. DNO is now preparing to suspend Gabdain-1 and
move to the Gabdain-2 location. The Gabdain-2 exploration well will drill a
shallow Qishn formation prospect.

Bastora-1, Kurdistan Region of Iraq

Drilling of exploration well Bastora-1 in the Erbil license commenced on 7
September. The well has been drilled to total depth of 3,600 meters. As
previously reported hydrocarbons were observed while drilling through several of
the prospective intervals.

Two tests were undertaken in the lower part of the Cretaceous interval, both
flowing water. A third test in the Cretaceous has now been completed. A flow
rate of 500 - 600 barrels per day of 16-18 API was achieved during the test. The
test was undertaken after acid stimulation of the perforated interval, and the
well was flowed using a submersible jet pump. The well flow was not fully
stabilized during the test. Various options for improving the flow rate from
this zone at a later stage will be investigated.

Additional three tests are planned to be undertaken in the well. Once the full
test program is completed and the results are evaluated, a further update will
be reported to the market.

Oslo, 4 February 2011

DNO international ASA
Corporate Communications


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