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DNO Reports Exploration Update in Block 43

Source: www.gulfoilandgas.com 11/1/2012, Location: Middle East

DNO announced that the Nabrajah-21 well in Block 43, Republic of Yemen, has been completed as an infill well in the Nabrajah field. Nabrajah-21, the first horizontal well drilled by DNO International into the Qishn producing interval, is averaging 800 barrels of oil per day and has increased daily Nabrajah field production to 2,200 barrels. DNO International operates Block 43 with a 56.67 interest. Following this positive outcome, the Company has commenced drilling a second horizontal well in Block 43, Nabrajah-20, before moving the rig to Block 47 to drill the Yaalen-3 well as part of the Yaalen field development plan.

"We are of course very pleased with these results as we continue both to build and to diversify the Company's production through an active drilling program across the portfolio," said Bijan Mossavar-Rahmani, DNO International's Executive Chairman. DNO International recorded production of 41,545 barrels of oil equivalent per day on a Company Working Interest (CWI) basis in the third quarter, up from 23,234 barrels of oil equivalent per day in the second quarter of 2012. The increase is a result of resumption of oil exports from the Tawke field in Kurdistan Region of Iraq in early August and resumption of oil and gas production from the West Bukha field in early September following the previously reported replacement of a blocked section of the offshore pipeline connecting the field to export facilities.

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