DNO International ASA - Second Quarter Producti...

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


PRODUCTION REPORT

DNO's Working Interest (WI) production continued to increase in June
to 22,545 bopd, and in the second quarter the WI production increased
to 20,151 bopd. This is up 57 % compared to the second quarter 2007
and up 16 % compared to the first quarter of 2008.

The Net Entitlement (NE) production to DNO in second quarter was
12,809 bopd, and the achived oil price was 71,46 USD per barrel.


Working Interest (WI) Production.

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


        (Bopd)         June 2008 Q1 2008 *) Q2 2008 YTD 2008
        Yemen            9,556     10,369    9,924   10,146
        Kurdistan/Iraq  12,989     7,083    10,228   8,805
        Total           22,545     17,452   20,151   18,952



*) 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 2nd quarter  2008 was 11,361
bopd, up 65 % compared to 1st quarter 2008 (6,872 bopd). 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)             June 2008 Q1 2008 Q2 2008 YTD 2008
        Yemen              5,703     7,320   5,979   6,650
        Kurdistan/Iraq     8,663     7,083   6,830   6,957
        Total              14,366    14,403  12,809  13,607

        Achieved oil price 68,85     61.96   71,46


The production figures (WI and net entitlement) include crude oil
consumed in the operation of the Company's production s facilities,
at an accumulated volume of 318 bopd during 2nd quarter 2008 compared
to 306 bopd in 1st quarter.

SUMMARY OF ONGOING DRILLING ACTIVITIES

Yemen

Block 43

Rig 908 spudded Nabrajah #18 development well on 30 May 2008 and the
well was completed as an oil producer. The initial gross flow rate is
30-40 bopd with high water production. The rig will now be moved to
the eastern part of the Block to drill the Suwehed # 1 exploration
well.

Block 47

On the Yaalen #1 discovery well, the test programme has continued
with rig 900. As previously reported the first test was carried out
as an open hole test of Basement, testing gas at a flow rate of 2,45
million standard cubic feet per day (scfpd) with associated
condensate rate of 64 bopd. The well is currently testing the Qishn
sand stone interval, as the final test in the well. The test
undertaken in the carbonate section between the Basement and the
Qishn intervals did not confirm commercial rates of hydrocarbons.

The Yaalen # 2 exploration well has confirmed oil in the Qishn sand
stones from open hole fluid sampling. Testing of this interval has
been undertaken but the test results to date are not conclusive. The
rig will be now be released and moved to drill Tasour # 17 located
east of the Tasour field in Block 32. Additional testing of the Qishn
interval will be undertaken with Rig 900 as soon as the Yaalen # 1
testing is completed.

Block 53

The Bayoot #6 exploration well in Block 53 was spudded 17 June 2008,
and the drilling is currently in progress.

Kurdistan Region of Iraq

Tawke PSC area

As previously reported the test of the Cretaceous interval in Tawke #
11 flowed at a maximum gross rate of 8,500 bopd. The well is now
completed as a future oil producer / observation well.

The Sindy rig was then moved to drill the Tawke # 10 appraisal well
targeting the Tertiary formation at the western part of the Tawke
structure. The drilling has now been completed and the well flowed at
a maximum gross rate of 9,300 bopd from the Tertiary interval. The
well will be completed as a future oil producer.

The Tawke # 15 well was spudded 20 May 2008 with the GWD 9 rig. The
well will be drilled as a combined Cretaceous delineation well and
Jurassic/Triassic exploration well. Drilling is in progress but the
well has not yet reached the primary target intervals.

Erbil PSC Area

The Hawler #2 well was spudded 8 May 2008 with rig GWD 10. The well
is primarily targeting Jurassic and Triassic intervals to further
explore the oil discovery in Hawler #1 well. Drilling is in progress
but the well has not yet reached the primary target formation.

Mozambique

Inhaminga block

The Sangussi #1 exploration well was spudded on 4 July 2008. The well
has now reached the total depth without encountering hydrocarbons.
The rig will now be released but further technical work and prospect
evaluation will be undertaken to investigate additional prospects
potential within this large Block.

DNO International ASA
29th July, 2008


Contact:

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

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