DNO ASA - Bond Loan Funding

DNO ASA has today increased funding under bond loan facility DNO08 ( ISIN NO0010302649 ) by NOK 100 mill. The loan drawdown has been arranged by Fearnley Fonds ASA.
August 18, 2006

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.