DNO ASA-Update Nabrajah-11

The testing of well Nabrajah-11 is now completed and the well is being temporarily suspended. A maximum oil rate of 650 bopd was obtained during the test. Due to restricted inflow performance this oil rate was maintained only for a short period. The well is planned to be re-entered at a later stage for further stimulation and re-testing.  Further stimulation and testing of Nabrajah 9 and Nabrajah 10 will be considered.
 
The rig will now be moved to the Tasour 23 location to drill a basement prospect in the Tasour area. Thereafter the rig will move back to Block 43 to drill an exploration well before returning to the Nabrajah Field for further drilling.
 
 
 
 
DNO ASA
August 24, 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 15.500 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.