Proposed merger of RAK Petroleum MENA subsidiaries into DNO ahead of London listing

DNO International ASA (DNO) and UAE-based RAK Petroleum Public Company Limited (RAK Petroleum) have signed a heads of agreement to merge RAK Petroleum's Middle East and North Africa (MENA) operating subsidiaries into a subsidiary of DNO in exchange for DNO shares to be issued to RAK Petroleum.

The consideration shares will be issued at a minimum share price of NOK 8.25 per share and a maximum share price of NOK 10.00 against a value of the RAK Petroleum MENA assets between USD 250 and 300 million.

See attached full stock exchange notice for more information.

Oslo, 4 July 2011

DNO International ASA
Corporate Communications 

This information is subject of the disclosure requirements acc. to ยง5-12 vphl (Norwegian Securities Trading Act)