DNO International Not to Proceed with Current Offer to Acquire Calvalley Petroleum Inc.

Oslo, 12 July 2012 -- DNO International ASA ("DNO International"), the Norwegian
oil and gas company, announced today that based on recent news from Calvalley
Petroleum Inc. ("Calvalley") (TSX: CVI.A), it has currently decided not to
proceed with its proposed all-cash offer (the "Offer") to acquire Calvalley at a
price of CAD 2.30 per Class A common share.

DNO International previously announced on 5 July 2012 its intention to commence
the Offer on or about 12 July 2012 by way of publication of an advertisement and
filing of a formal take-over bid circular. At that time, DNO International had
not received any meaningful engagement from Calvalley's board of directors or
senior management to its approaches, including an offer letter dated 7 June
2012, and therefore felt compelled to bring instead its offer directly to the
Calvalley shareholders.

Following DNO International's announcement, Calvalley in turn disclosed on 6
July 2012 that it had received from one of its partners a Notice of Material
Terms and Conditions (the "Notice") that set forth the provisions under which
such partner intends to dispose of its 25 percent working interest in Block 9,
Republic of Yemen ("Block 9") to a third party. Calvalley further disclosed that
under Block 9's joint operating agreement, the existing partners have the option
to match the offer and acquire either all or their proportionate share of the
working interest to be assigned and that the Calvalley board of directors would
meet immediately to consider its options.

The opportunity by Calvalley to match the offer on Block 9 may help explain
Calvalley's previous reluctance to enter into any meaningful dialogue.

DNO International looks forward to learning Calvalley's response to the Notice
before determining whether or how best to engage in a constructive dialogue
towards any transaction.
---
DNO International ASA is an Oslo-listed, Middle East and North Africa focused
oil and gas company holding stakes in 17 licenses in various stages of
exploration, development and production both onshore and offshore in the
Kurdistan Region of Iraq, the Republic of Yemen, the Sultanate of Oman, the
United Arab Emirates and the Tunisian Republic. http://www.dno.no
---

Oslo, 12 July 2012

DNO International ASA
Corporate Communications

Queries: Tom Bratlie (tom.bratlie@dno.no or tel: +47 905 21 904)


This news release contains statements that constitute "forward-looking
information" or "forward-looking statements" (collectively "forward-looking
information") within the meaning of applicable securities legislation. This
forward-looking information includes, among others, statements regarding DNO
International's intention not to proceed with the Offer, Calvalley's intentions
with respect to the Notice and DNO International's and Calvalley's ongoing
relationship. This forward-looking information is subject to numerous risks and
uncertainties, certain of which are beyond DNO International's control
including, without limitation, uncertainty related to Calvalley's future plans
and ability to carry out and complete such future plans. Readers are cautioned
that the foregoing list of risk factors is not exhaustive. DNO International's
actual results, performance or achievements may differ materially from those
expressed in, or implied by this forward-looking information and, accordingly,
no assurance can be given that any events anticipated by the forward-looking
information will transpire or occur, or if any of them do so, what benefits that
DNO International will derive therefrom.
Information in this news release concerning Calvalley is based entirely on
publicly available sources and has not been independently verified by DNO
International. DNO International assumes no responsibility for the accuracy or
completeness of such information.

Note: All financial figures are in Canadian dollars unless noted otherwise.
This news release does not constitute an offer to sell or the solicitation of an
offer to buy any securities. No offering of securities will be made absent
registration under, or an exemption from the registration requirements of,
applicable securities laws.


This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)



This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: DNO International ASA via Thomson Reuters ONE
[HUG#1626211]




Unternehmen: DNO International ASA - ISIN: NO0003921009