DNO ASA - Nabrajah # 11 Update

Following the test of the Basement interval the Naifa/Kohlan interval was selectively acidised and the test of the combined Naifa/Kohlan and basement intervals commenced on 9th August 2006.
Some initial problems with the operation of the down hole jet pump were overcome and the well was brought on stream. Early indications show the well to be cleaning up with traces of oil being observed. The forward program is to continue pumping the well until the well has cleaned up and stabilized flow has been achieved.
Nabrajah-11 has been drilled as an appraisal well on the South-Western corner of the Nabrajah structure.  The well has been drilled to a total depth of 2924 m, 480 m into the Basement.
Website : www.dno.no
Notes to the Editors:
DNO ASA is an independent oil and gas exploration and production company based in Oslo, Norway.
The company has a diversified, risk balanced portfolio with interests in Norway, UK, Yemen, Northern Iraq and Africa.
Hydrocarbon production is currently focused on its operations in Yemen and Norway, with current daily production of ca. 17,000 BOPD. The Company commenced production on its Nabrajah concession in Yemen in July 2005, which is expected to increase the daily output in 2006.
Following an additional oil discovery early in 2006 in Norway, DNO currently holds proven and probable reserves of more than 100 million barrels. This has also resulted in an increase in the proven plus probable reserve base by more than 250 % since December 2004. The increase in reserves comes from a combination of successful exploration drilling and acquisitions.
In 2006 the Company will increase its exploration activities across all of its core areas of interests which will increase DNO's exploration budget to approximately USD 100 million. Throughout the year DNO plans to participate in 22 exploration wells, of which 15 as Operator.