DNO ASA — Capital/Financing Update 2010

Nov 18, 2010

Completed Private Placement of Equity

Reference is made to the stock exchange notice dated 17 November 2010 regarding

a contemplated private placement of up to 45 million new shares in DNO directed

towards Norwegian and international institutional investors. The Board of

Directors (the "Board") of DNO is pleased to announce that the Private Placement

has been successfully subscribed for and allocated.

The book-building period for the private placement closed on 17 November 2010 at

19:30 CET and the Board has resolved to allocate 45 million new shares at a

subscription price of NOK 8 per share. Gross proceeds amount to approximately

NOK 360 million. The private placement was more than 100 per cent oversubscribed

at the subscription price. Allocation notices will be sent today, 18 November

2010. Payment of shares and delivery is expected to be 23 November 2010.

Use of proceeds from the private placement will be exploration and appraisal

drilling beyond the current investment plans, new license entries and general

corporate purposes. The Board of DNO resolved to waive pre-emptive rights for

existing shareholders in the private placement to utilize an opportunity to

capitalize the Company in the current capital market based on an accelerated

book building process.

- DNO is entering an exciting period and has earlier announced at least five

exploration wells to be drilled over the next year. Through this placement we

are providing sufficient cash for exploration and appraisal drilling beyond the

previously communicated investment plans. Additionally, the placement further

strengthens the balance sheet, allowing us also to actively seek new license

entries going forward, says Managing Director Helge Eide.

The Private Placement was managed by ABG Sundal Collier Norge ASA as Lead

Manager and sole bookrunner and DnB NOR Markets as Co-Manager.

Oslo, 18 November 2010

DNO International ASA

Corporate Communications

Contacts:

Media:

Communication Director Tom Bratlie

Phone: +47 905 21 904

Financial market:

CFO Haakon Sandborg

Phone: +47 23 23 84 80

IMPORTANT NOTICE:

This notice is not for distribution to United States new services or for

dissemination in the United States, Canada, Japan or Australia or elsewhere

where such dissemination is not appropriate.

The contents of this announcement have been prepared by and are the sole

responsibility of DNO International ASA ("DNO"). ABG Sundal Collier Norge ASA

and DnB NOR Markets are acting exclusively for DNO and no one else and will not

be responsible to anyone other than DNO for providing the protections afforded

to their respective clients, or for advice in relation to the contemplated

Private Placement and the contents of this announcement or any of the matters

referred to herein.

The distribution of this announcement and other information in connection with

the Private Placement may be restricted by law in certain jurisdictions.

Persons into whose possession this announcement or such other information should

come are required to inform themselves about and to observe any such

restrictions.

This announcement may not be used for, or in connection with, and does not

constitute, any offer to sell, or an invitation to purchase, any securities. The

Private Placement will not be made in any jurisdiction or in any circumstances

in which such offer or solicitation would be unlawful.

The securities referred to herein have not been and will not be registered under

the US  Securities Act of 1933, as amended, and may not be  offered or sold in

the United States or to US persons unless the securities are registered under

the Securities Act, or an exemption from the registration requirements of the

Securities Act is available. No public offering of the securities will be made

in the United States.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1463650]