Boards of Directors Approve Merger of RAK Petro...

Following completion of due diligence and agreement on relative valuations, the
Boards of Directors of DNO International ASA ("DNO International") and RAK
Petroleum PCL ("RAK Petroleum") signed definitive documents on 3 September 2011
to merge RAK Petroleum's oil and gas operating companies into DNO International
in exchange for DNO International shares (the "Transaction"). The Transaction
values DNO International at USD 1.64 billion corresponding to NOK 9.50 per share
and RAK Petroleum's operating subsidiaries at USD 250 million (before working
capital adjustments).

"By combining our two companies' assets and people, the enlarged DNO
International will be positioned not only to extract greater value from the
existing exploration and production properties but to play an even more active
role in the Middle East and North Africa or MENA region," said Helge Eide, DNO
International's Managing Director. He added that while the new and enlarged
entity will be present in five MENA countries, the company is committed to
further expanding its operations in the Kurdistan Region of Iraq.

Gunnar Hirsti, DNO International's Deputy Chairman, who led the merger
negotiations for the Company, stated that given the related party nature of the
transaction special care was taken to conduct thorough due diligence using both
internal and external resources and to secure the best possible terms and
conditions, including relative valuations. "The current merger discussions were
initiated by DNO International's management in July 2011 with full support of
the independent directors and we are very pleased with the outcome and believe
it ultimately serves all our shareholders and stakeholders," according to
Hirsti.

The merger is part of DNO International's strategy to expand its operations in
the MENA region while securing a more diversified asset base through acquisition
of existing reserves and production as well as additional exploration acreage,
both onshore and offshore.

The Company's current working interest production averages 45,000 barrels per
day of oil equivalent. Following the merger, the immediate production
contribution from RAK Petroleum's MENA operating subsidiaries to the Company
will be around 7,500 barrels per day of oil equivalent, climbing to around
15,000 barrels per day of oil equivalent within a year with the successful
implementation of the Saleh field re-development program offshore Ras Al
Khaimah.

Presentation/webcast and conference call
A presentation and webcast will be held today, 5 September 2011 at the
Continental Hotel in Oslo at 10:00 CET. A live webcast of the presentation will
be available on the DNO International website www.dno.no or by following this
link:

http://presenter.qbrick.com/?pguid=d2a1a56b-06fb-49a9-8b6f-e7f60ee99671

An analyst conference call will be held today, 5 September 2011 at 15:00 CET.
The conference call will mainly be conducted as a Q&A session. Participant
telephone numbers are [phone] (Norway Toll) or [phone]
(International Toll). Conference ID is 5976184.

A presentation for the webcast and conference call will be published prior to
the events.

For more information, see attached press release.

Oslo, 5 September 2011

DNO International ASA
Corporate Communicartions


This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.




BoD Approve DNO-RAK Merger - Press Release and SE Notice: 


http://hugin.info/36/R/1543898/473027.pdf




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Source: DNO International ASA via Thomson Reuters ONE

[HUG#1543898]