December Production and Nabrajah # 9 Update.

Production Report:
DNO's oil production in December 2005 increased by 16 % compared to December 2004. In 4th Quarter 2005 the oil production increased by 9 % compared to 4th Quarter 2004.
The average oil production for 2005 of 14.739 BOPD was up 5 % compared to 2004, and is in line with the guided production of 14.000 - 15.000 BOPD for the year.
The oil production net to DNO from Norway and Yemen was as follows (BOPD):
4th  Quarter
The main reason for the production increase in December was higher production from the Nabrajah Field in Yemen after bringing first Basement production on line from Nabrajah # 5.  Nabrajah # 5 has shown stable gross production without artificial lifting at approximately 4.500 BOPD, bringing the gross production of Nabrajah Field up to approximately 12.000 BOPD (7.770 BOPD net to DNO pre-tax).
Nabrajah # 9 Update:
As reported in the Stock Exchange Notice on 29th December 2005, an intermediate production test was to be undertaken of the upper 470 meters of the Basement after Nabrajah # 9 had been drilled to a depth of 2648 meters. The purpose of the test was to evaluate the significance of the oil shows and gas readings observed while drilling.
During the test the well flowed gas at rates of up to 1,580 Mcf/d, with traces of oil. As a result of the high gas content in the wellbore, the Electrical Submersible Pump (ESP) for artificial lifting could not be used to clean up the well flow. Running a Production Logging Tool (PLT) indicated that the borehole section below 2,185 meters contained a column of drilling fluid and oil.
Based on these observations it was decided to resume drilling further into the Basement.
The total depth of the well, subject to further hydrocarbon shows observed while drilling, could be between 2,940 meters and 3,567 meters. Further testing of the well will be considered once the well reaches the total depth.
Nabrajah-9 is the second well in the first phase of the Nabrajah Basement appraisal/development program.  The well is located 2.7 kilometres north west of Nabrajah-5 and is being drilled as a deviated well.  The objectives of the well are to appraise the Basement oil accumulation discovered by Nabrajah-5 and to provide oil production from the fractured Basement reservoir.