DNO International ASA - July Production

DNO is pleased to report the production figures for July and year to
date.


DNO's Working Interest (WI) production is for the third month in row
above 20,000 bopd. DNO's WI production in July decreased slightly to
20,584 bopd from the peak production in June of 22,545 bopd. WI
production for July 2008 is up 21 % compared to July last year.

Working Interest (WI) Production.

DNO's oil production (WI) is reported as follows:


        (Bopd)         Q1 2008 *) Q2 2008 July 2008 YTD 2008
        Yemen            10,369    9,924    9,393    10,037
        Kurdistan/Iraq   7,083    10,228   11,191    9,152
        Total            17,452   20,151   20,584    19,189


*) As part of the change in Tawke PSC terms DNO was 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

The KRG has temporarily put on hold all the production for the local
market in the Kurdistan Region, to enable the local authorities to
review the licensing, compliances and uniformity of procedures
applied to the small topping plant owners in order to regulate the
manner that crude oil is supplied to them, including the crude oil
pricing issues and the quality of the products generated by the
topping plants. According to KRG it is expected that these
formalities will be completed during August, with the oil production
resuming by late August/early September.

To some extent this effected the production in July and based on the
timing indicated by KRG there will be no production from Tawke in
August. As previously reported key objectives for the test production
which commenced June 2007 was preparing for export of oil as well as
to gather reservoir information during production as early as
possible to further optimize the production strategy and reservoir
management of the field. The period during no test production
provides a unique opportunity to acquire updated static pressure
information across the field, and DNO has initiated a data
acquisition program for such purpose.


The production figures include crude oil consumed in the operation of
the Company's production facilities, at an accumulated volume of 340
bopd during July compared to 330 bopd during 2nd quarter 2008 and 306
bopd in 1st quarter.

The July and year to date net entitlement production and achieved oil
price will be reported in mid-September together with the August
production and drilling report.

An update of the ongoing drilling activities will be done as part of
the second quarter interim report which will be released to the
market on 20 August.



DNO International ASA
18th August, 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]