DNO ASA - July & August Production Update

For the first eight months of 2006, the Company's oil production was 15.243 BOPD which is up 9 % compared to 2005.
 
DNO's oil production for July, August and first eight months of 2006 were as follows (BOPD):
 
 
 
The production from Yemen continued to show some decline during July and August. However, this trend turned at the end of August as a result of a new production well, Tasour 22ST which was brought on stream at an initial gross oil rate of 6.400 BOPD (2.511 BOPD net to DNO, pre-tax). The production from the well has now been directed through the Tasour CPF, and the gross oil production over the last days has been increased to more than 8.000 BOPD (3140 BOPD net to DNO, pre.tax). The production is expected to decline from this level over time, but until know the production from Tasour 22ST has been higher than expected.
 
The Glitne production has been stable over the last months.
 
DNO ASA
6th September 2006
 
Contact:
 
Helge Eide
Managing Director
 
Telephone: (+47) 23 23 84 80
 
 
Website : www.dno.no
 
Notes to the Editors:
 
DNO ASA is an independent oil and gas exploration and production company based in Norway.
 
The company has a diversified, risk balanced portfolio with petroleum interests in Norway, UK, Yemen, Northern Iraq and Africa.
 
Hydrocarbon production is currently focused on its operations in Yemen and Norway. The Company commenced production from its third field in Yemen (Nabrajah) in July 2005, which has caused an increase in the Company's daily output in 2006 YTD to approximately 15.243 BOPD.
 
Following additional oil discoveries in 2006 in Norway, DNO currently holds proven and probable reserves of approximately 140 million barrels
 
2006 will be an exciting and demanding year to DNO and the Company will increase its exploration activities across all of its core areas of interests. DNO's exploration budget in 2006 has increased to approximately USD 100 million. Throughout the year DNO plans to participate in 22 exploration wells, of which 15 as Operator.