DNO International ASA - November 2009 Productio...

(“DNO” or “the Company”)

DNO is today reporting November 2009 production. DNO’s working interest
production was 13,276 bopd in November 2009 and DNO’s net entitlement production
was 8,378 bopd.


PRODUCTION REPORT

Yemen production

DNO's working interest (WI) production from Yemen in November 2009 was 7,748
bopd and DNO’s net entitlement production was 4,693 bopd. Average realized oil
price in November was 78 USD/bbl.

Production from Yemen is reported as follows:


  (Bopd)                         Q3 2009   Oct 2009   Nov 2009   YTD-09
-------------------------------------------------------------------------
  Gross production               18,535     19,224     19,535    18,825

  DNO’s working interest (WI)     7,542     7,677      7,748     7,768

  DNO’s net entitlement (NE)      4,987     4,604      4,693     5,399

  Achieved oil price (USD/bbl)     69         74         78        60



The production figures include crude oil consumed in the operation of the
Company’s production facilities, at an accumulated volume of 271 bopd in October
2009.


Iraq production

DNO's working interest (WI) production from Kurdistan in November 2009 was
5,528 bopd and DNO’s net entitlement production was 3,685 bopd.

Production from Tawke is reported as follows:


   (Bopd)                       Q3 2009   Oct 2009   Nov 2009   YTD-09
------------------------------------------------------------------------
  Total gross production        41,157     5,595      6,142     15,968

  DNO’s working interest (WI)   37,036     5,036      5,528     14,371

  DNO’s net entitlement (NE)    24,796     3,357      3,685     9,581


The operation of the Company’s production facilities did not consume any crude
oil in November 2009.

As previously reported DNO will now focus on local sales until a future payment
mechanism for crude exports is in place. Since export halted 22 September all
the production from Tawke is delivered to the domestic market.



SUMMARY OF DRILLING ACTIVITIES



The planned sidetrack drilling of Nabrajah-10 commenced on 21 November. The well
is designed as a horizontal production well, targeting the Jurassic Shuqra
formation dolomite, already proved oil producing in the well Nabrajah-5. The
pilot-hole is now drilled and logged. Based on the evaluation of the results a
800 meter horizontal well section will now to be drilled within this formation.



The drilling operation of the Bayoot-7 Basement development well is ongoing. The
well has proved oil shows and gas reading at the top of basement, as expected.
The well is planned to be completed with a 900 meter section in the basement
reservoir. Drilling problems have caused delays in the operations. The well is
expected to be put on production during January 2010. Several new development
wells are planned to be drilled at the Bayoot field in 2010.



There are currently no drilling activities in Kurdistan.



DNO International ASA

22 December, 2009



[HUG#1366204]