DNO ASA - (DNO.NO) announce repurchase of DNO Bonds - DNO03 / DNO04

In connection with debt refinancing, DNO has repurchased NOK 285 Mill in DNO03, ISIN NO 001022657.4 (maturing 2009) and 170.5 Mill in DNO04, ISIN NO 001022658.2 (maturing 2009). The bonds will be refinanced with new bonds issues maturing 2011 and 2012.
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 Notes to the Editors:
DNO ASA is an international E & P company based in Oslo, Norway.
The company has a diversified, risk balanced portfolio with interests in Norway, UK, Yemen and Northern Iraq.
Hydrocarbon production is focused on its operations in Yemen and Norway, with current daily production of approximately 18,000 bopd.
During 2005, the Company increased its reserve base by more than 150 % primarily through exploration and acquisitions. Following an additional oil discovery early in 2006, DNO currently holds proven and probable reserves of more than 100 million boe.
 In 2006 the Company will increase its exploration activities across all of its core areas of interests, and DNO plans to participate in 22 exploration wells throughout the year, of which 15 as Operator.