Update on drilling activities

DNO is today reporting the preliminary results from the Chite-1 exploration well
in the Inhaminga Block in Mozambique.

The well spudded on 19 November and has now reached the targeted total depth of
3,500 meters. No hydrocarbons were detected in Chite-1 but valuable geological
and strategraphical information have been collected to further assist in
evaluating the hydrocarbon potential in the Inhaminga Block. The drilling
operation has been performed according to the drilling program, with no health,
safety or environmental issues.

Chite-1 is the first well ever to be drilled in the Urema Graben in Mozambique,
a potential new play fairway that DNO is testing for source rocks, reservoir
rocks and potential hydrocarbon trapping mechanisms. DNO will continue
exploration in the Inhaminga Block and has exercised an option with the
contractor to drill a second well named Inhaminga High-1. This is another high
impact frontier exploration well east of the Chite-1 location. Information from
the two wells is expected to provide valuable information in assessing the
hydrocarbon prospectivity and potential in the block.

Work has been undertaken to prepare the well site for Inhaminga High-1 and the
spud of the well is estimated to take place during January, 2011.

As previously reported, DNO has been awarded the rights to negotiate an EPC for
the Lower Zambezi Block in the fourth licensing round in Mozambique. Lower
Zambezi is located north of the Inhaminga Block in a previously unexplored area.

DNO is currently drilling two additional exploration wells, the Gabdain-1
basement exploration well in Block 72 in Yemen, and the Bastora-1 exploration
well in the Erbil licence in the Kurdistan Region of Iraq. Drilling operations
are progressing in accordance with the plan and there is currently no new
information from these wells beyond what was reported to the market on 21
December.

Oslo, 29 December 2010

DNO International ASA
Corporate Communications


Contact:

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Phone: [phone]

Financial market
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