DNO International ASA - Third quarter 2009 Prod...

("DNO" or "the Company")


DNO is pleased to report production for third quarter 2009. DNO's
working interest production was 44,578 bopd in third quarter. DNO's
net entitlement production increased from 11,753 bopd in second
quarter to 29,783 bopd in third quarter.

PRODUCTION REPORT

Yemen production

DNO's working interest (WI) production from Yemen in third quarter
2009 was 7,542 bopd and DNO's net entitlement production was 4,987
bopd. Average realized oil price for the Yemen net entitlement
production in third quarter was 69 USD/bbl.

The decline of oil production from the Yemen fields has to a high
extent been compensated by well optimization work and effect of new
infill wells. A small repair of the export pipe line from the Block
32 Tasour field caused shut-in of oil shipment to the terminal for 3
days in September. Further optimization of the permanent remote
process and export facilities at the Bayoot field in Block 53 is
ongoing. The production rate from the Bayoot wells has improved after
the installation of down-hole pumps in the wells, and has been
averaging at approximately 3,855 (gross) in the third quarter

Production from Yemen is reported as follows:


  (Bopd)                       Jul-09 Aug-09 Sep-09 Q3 2009 YTD-09
  Gross production             17,918 18,959 18,736 18,535  18,701
  DNO's working interest (WI)  7,396  7,694  7,536   7,542  7,780
  DNO's net entitlement (NE)   4,675  5,149  5,143   4,987  5,567
  Achieved oil price (USD/bbl)   66     73     69     69      57


The production figures include crude oil consumed in the operation of
the Company's production facilities, at an accumulated volume of 295
bopd in third quarter 2009

Tawke production

DNO's working interest (WI) production from the Tawke field in
Kurdistan in third quarter 2009 was 37,036 bopd and DNO's net
entitlement production was 24,796 bopd.

Production from Tawke is reported as follows:


    (Bopd)                     Jul-09 Aug-09 Sep-09 Q3 2009 YTD-09
   Total gross production      42,006 50,248 30,886 41,157  18,226
   DNO's working interest (WI) 37,791 45,223 27,797 37,036  16,403
   DNO's net entitlement (NE)  25,303 30,240 18,645 24,796  10,973


The production figures include crude oil consumed in the operation of
the Company's production facilities, at an accumulated volume of 108
bopd in third quarter 2009.

Gross production in third quarter was 41,157 bopd. Out of total gross
production, gross export volume from Tawke was 34,634 bopd. Local
sale of crude oil to the domestic market in third quarter contributed
with 6,387 bopd. Inventory changes affect the sales figures.

SUMMARY OF ONGOING DRILLING ACTIVITIES IN YEMEN
Drilling of infill production wells has commenced both in the Block
32 Tasour Field and the Block 53 Bayoot Field. This will be followed
up by drilling a horizontal production well in the Block 43 Nabrajah
Field, which is expected to start late October.

The exploration well Harad #1 in Block 52 was concluded as a dry
well, after having tested a structure in Block 52 in early September.
Only some minor oil shows were encountered in the Qishn sandstone
reservoir. The side-track drilling of well Raoq-1S in Block 53 proved
again movable oil both in Cretaceous and Jurassic carbonates.
However, the well failed to produce oil at commercial rate and the
well is abandoned and expensed in third quarter.

KURDISTAN OPERATIONS
Export of crude oil from the Tawke field commenced 1 June 2009 and
continued until 21 September 2009. In this period the Tawke
production and export increased in line with the plan agreed with the
KRG and North Oil Company (NOC), and the Tawke facilities have been
tasted at their design capacity. The average deliveries in August
from Tawke were close to the design capacity.

As previously reported KRG suspended all DNO's operations in the
Kurdistan Region with immediate effect 21 September. All issues with
respect to the suspension were resolved 5 October and DNO's rights to
its production sharing contracts were reinstated with immediate
effect. Going forward DNO will focus on local sales until a future
payment mechanism for crude exports is in place.


DNO International ASA
19 October, 2009


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