DNO International ASA - DNO is pleased to announce certain amendments to its PSC contracts in the Kurdistan Region of Iraq.

Commenting on this Helge Eide, Managing Director of DNO International ASA said:
"With these amendments in place DNO can fully focus on preparing the Tawke field for export and continue the appraisal and delineation of the Hawler discovery towards development. This combined with the two retained prospects brings a good balance between exploration opportunities, field development and production to our asset portfolio in the Kurdistan Region of Iraq"
The test production from Tawke has been an important factor for preparing export of oil from Tawke. The reservoir information acquired during the test production to date has provided essential information in order to optimize the production strategy and reservoir management for maximizing recovery of oil from the field. During the temporary halt in test production reported last month DNO has initiated an extensive data acquisition program for acquiring new reservoir pressure data across the field during shut-in and subsequent start-up.
The test production has also allowed DNO to test and commission the Central Processing Facilities (CPF) at Tawke, and the 42 km 12" pipeline connecting the CPF to the location of the tie-in point at the Northern strategic pipeline system was commissioned earlier this year.
KRG has advised DNO that test production will recommence next week and equipment is now being installed in several wells to monitor the pressure behavior during the next period of test production.
KRG has also authorized DNO to proceed with the remaining activities in preparation for export. This includes preparatory work for the physical tie-in to the Northern strategic pipeline and to perform a compatibility study of the Tawke oil for comparison with the other crude oil qualities currently being transported through the pipeline system.

DNO International ASA
12 September 2008

Media contacts:
Helge Eide, Managing Director, DNO International ASA; +47 23 23 84 80
Lars Erik Lund, Crux Kommunikasjon (Norway); +47 930 36 866
Ben Willey, Buchanan Communications (UK); +44 207 466 5000
Nick Melson, Buchanan Communications (UK); +44 207 466 5000
Investor Relations contacts:
Haakon Sandborg, CFO, DNO International ASA; +47 23 23 84 80