DNO International ASA - May Production and Dril...

DNO is pleased to report May 2008 production figures and a summary of
ongoing drilling activities.

DNO is pleased to report May 2008 production figures and a summary of
ongoing drilling activities.


PRODUCTION REPORT

The Working Interest (WI) production to  DNO in May was 21,889  bopd,
up 37 % compared to April.

The Net Entitlement (NE)  production to DNO in  May was 13,874  bopd,
and the achived oil price was 69,49 USD per barrel.


Working Interest (WI) Production.


DNO's oil production (WI) is reported as follows:


       (Bopd)         Q1 2008 *) April 2008 May 2008 YTD 2008
       Yemen            10,369     10,001    10,204   10,263
       Kurdistan/Iraq   7,083      5,961     11,685   7,980
       Total            17,355     15,962    21,889   18,243


*) As part of the change in Tawke PSC terms DNO was entitled an
additional volume of 82,558 barrels produced from start of production
in June 2007 until 12th March 2008. This additional volume is booked
in 1st quarter 2008

Gross production from the Tawke field in May was 12,983 bopd, up more
than 100 % compared to previous month. The increase is due to higher
sales volumes in the domestic market.


Net Entitlement (NE) Production and Achieved Oil Price


Net entitlement production is shown in the table below:


  (Bopd)                       Q1 2008 April 2008 May 2008 YTD 2008
  Yemen                         7,320    6,150     6,080    6,837
  Kurdistan/Iraq                7,083    4,002     7,794    6,620
  Total                        14,403    10,152    13,874   13,457

  Achieved oil price (USD/bbl)  61.96    77.85     69.49    65.90



The production figures (WI and net entitlement) include crude oil
consumed in the operation of the Company's production facilities, at
an accumulated volume of 306 bopd during 1st quarter 2008. Crude oil
consumed in April 2008 was 346 bopd and 314 bopd in May 2008.


SUMMARY OF ONGOING DRILLING ACTIVITIES

Yemen


Block 43

Rig 908 spudded the Mesari # 1 exploration well 25th of April. The
Qishn sandstone was found to be water bearing, whereas there are
indications of hydrocarbon in Saaf formation. The well was logged,
completed and temporarily abandoned. The Saaf formation will be
tested by use of swabbing equipment at a later stage.

Rig 908 was then moved to drill the Nabrajah #18 development well on
the same block. The Nabrajah #18 well was spudded 30th of May.

Block 47

Rig 900 spudded the Sharnah # 1 exploration well on 28th of March as
the second exploration well in the block. Oil was encountered in
Qishn sandstone, and the well was tested at an oil rate of 600 - 700
bopd with a water cut of 70/80 %. The well was drilled at the flank
of the structure and additional appraisal drilling will be undertaken
at a later stage. The Sharnah # 1 well was completed as a future
potential producer.

The rig was then moved and re-entered the Yaalen #1 discovery well
where a multiple test programme is currently being undertaken. The
first test was carried out as an open hole test of Basement, testing
gas at a rate of 2,45 million scf/d with associated condensate rate
of 64 bopd. Additional testing of other reservoir intervals is
currently in progress.

The Yaalen # 2 exploration well was spudded on 2nd of May 2008 with
rig 905, and oil was confirmed in the Qishn sandstones through MDT
fluid sampling. The well is will be further deepened into Basement
before testing is undertaken.

Block 53

The Sharyoof # 29 development well was drilled and completed as a
producer, after which rig 919 was moved to the Sharyoof #30 location.
The Sharyoof #30 development well was drilled and completed in the
period 18th of May to 10th of June, and brought on stream at an
initial gross rate of 430 bopd. The rig will be moved to the Bayoot
#6 well location within the same block.


Kurdistan Region of Iraq

Tawke PSC area

The Tawke # 11 was re-entered by the Sindy carrier rig, and drilled
into the top of the Jurassic interval, where indications of a
fracture system were observed. A 7" liner was installed through
Cretaceous, after which the top of the Jurassic interval was open
hole tested confirming water at this level. The open hole section was
subsequently plugged off, and two DSTs was then undertaken in the
lower part of the Cretaceous interval, testing at a maximum gross
rate of 8,500 bopd on 3" choke. The well will be completed without
further testing, as a combined production and observation well.

The Jurassic interval within the Tawke PSC area will be subject to
further exploration, and will be drilled by a combined Cretaceous
delineation well and Jurassic/Triassic exploration well . This well,
Tawke # 15, was spudded 20th of May

Dohuk PSC Area

The Summail Extension # 1 well was temporarily abandoned 9th of May
to allow for later re-entry and sidetrack, and GWD#9 rig was then
moved to the Tawke # 15 well location on the Tawke PSC.

Erbil PSC Area

TheGWD#10 rig spudded the Hawler #2 exploration well 8th of May. The
well is primarily targeting Jurassic/Triassic intervals to further
explore the discovery in Hawler #1 well and secondly to clarify the
potential of the Cretaceous formation in the area.


DNO International ASA
18th June, 2008


Contact:

Media:
Helge Eide, MD DNO International ASA   Telephone:    [phone]
Ketil Jørgensen, Crux Communication    Telephone     [phone]
(Norway)
Ben Willey, Buchanan Communications    Telephone:    [phone]
(UK)

Investor Relations:
Haakon Sandborg, CFO DNO International Telephone:    [phone]
ASA
Robert Arnott, Advisor (UK)            Telephone     [phone]