DNO ASA — Earnings Release 2009

Jan 21, 2010

DNO International ASA - Forth quarter 2009 Production Report

("DNO" or "the Company")

DNO istoday reporting working interest production for the month of December and

the fourth quarter 2009.

DNO's working interest production in December 2009 was 14,744 bopd, In the

fourth quarter 2009 the working interest production was 13,581 bopd.

PRODUCTION REPORT

Yemen production

DNO's working interest (WI) production from Yemen in fourth quarter 2009 was

7,655 bopd and DNO's net entitlement production was 4,738 bopd. Average realized

oil price in the quarter was 76 USD/bbl.

Production from Yemen is reported as follows:

(Bopd) Q3 2009 Q4 2009 Dec 2009 YTD-09

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Gross production 18,535 19,237 18,962 18,836

DNO's working interest (WI) 7,542 7,655 7,543 7,749

DNO's net entitlement (NE) 4,987 4,738 4,913 5,358

Achieved oil price (USD/bbl) 69 76 75 61

The production figures include crude oil consumed in the operation of the

Company's production facilities, at an accumulated volume of 270 bopd in fourth

quarter 2009 and 277 bopd in December 2009.

Iraqproduction

DNO's working interest (WI) production from Kurdistan infourth quarter 2009 was

5,926 bopd and DNO's net entitlement production was 3,959 bopd.

Production from Tawke is reported as follows:

(Bopd) Q3 2009 Q4 2009 Dec 2009 YTD-09

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Total gross production 41,157 6,584 8,002 15,291

DNO's working interest (WI) 37,036 5,926 7,201 13,762

DNO's net entitlement (NE) 24,796 3,959 4,821 9,186

The production figures include crude oil consumed in the operation of the

Company's production facilities, at an accumulated volume of 30 bopd in fourth

quarter 2009 and 66 bopd  in December 2009.

SUMMARY OFDRILLING AND TESTING ACTIVITIES

The drilling operation of the Block43 Nabrajah-10s/S2 well is in progress.

Following drilling of a pilot hole into Shuqra formation dolomite and

Basement, the drilling of a 800 meter horizontal section has now commenced. The

well is planned to be completed as a Nabrajah producer.

The drilling operation of the Block 53 Bayoot-7 Basement development well is now

completed. A 650 meter  section has been drilled in the fractured

basement reservoir and the forward plan is to complete the well as a Bayoot

basement producer.

The Sindy-1 rig was mobilized and moved to Erbil PSC during January.Testing of

Erbil-2 well is expected to commence in ultimo January 2010.

DNO International ASA

21 January, 2010

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

(Norwegian Securities Trading Act)

[HUG#1375523]