DNO International ASA - Strategic Review of DNO...

DNO International ASA

                      ("DNO" or "the Company")

                        STOCK EXCHANGE NOTICE


Strategic Review of DNO`s 36.9% Shareholding in Det norske
oljeselskap ASA (DETNOR)

In December 2007, DNO completed the combination of its Norwegian
subsidiary Det Norske Oljeselskap ASA and Pertra ASA, to form DETNOR,
Norway`s second largest oil company in terms of operated licenses.

The market capitalization of the new DETNOR was about NOK 4.8 billion
or NOK 72 per share. Investors were invited to purchase shares for
this share price for a total amount of NOK 650 million. Since then
the market value of DETNOR has declined to about NOK 1.7 billion or
NOK 25-27 per share, due to the fall in commodity prices, the
worsening economic and financial environment but also market concern
over the profitability of certain investment projects pursued by
DETNOR.

DNO, DETNOR's major shareholder shares this concern, particularly on
the Frøy Field, where it does not support the currently proposed
development and cost scenarios.  DNO encourages DETNOR and their 50%
partner of the Frøy License, Premier Oil Ltd, to find more cost
effective and better solutions for the Frøy field.

With a strong cash position of about NOK 2 billion in DETNOR, other
license investment opportunities should also be considered. DETNOR
has strategic positions established in the areas around Varg, Jotun
and Draupne for fast track developments. DETNOR's likely developments
and discoveries under evaluation amounts to 59MMboe, and prospects
targeted in the next two years contain risked potential resources of
226 MMboe.

In DNO's view, DETNOR is currently trading at a significant discount
to the underlying value of the company's assets, and does not reflect
the true potential of the company. DNO has received several requests
for DNO's DETNOR shares at the current market price. DNO has
appointed Scotia Capital Inc. as its Financial Advisor to assist with
the evaluation of strategic alternatives with respect to its 36.9%
shareholding in DETNOR.


The Board of DNO International ASA
5 December, 2008



Contact:

Media:
Helge Eide, Managing Director, DNO        Telephone: [phone]
International ASA                         Telephone: [phone]
Ketil Jørgensen, Crux Communication
(Norway)
Ben Willey, Buchanan Communications (UK)  Telephone: [phone]

Investor Relations:
Haakon Sandborg, CFO DNO International    Telephone: [phone]
ASA


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.