DNO International to Receive Fiscal Entitlements Pursuant to the Tawke Production Sharing Contract

Oslo, 24 July 2012 -- DNO International ASA ("DNO International"), the Norwegian
oil and gas company, announced today that it has reached agreement with the
Kurdistan Regional Government (KRG) to fully apply the fiscal terms and
conditions of the existing Production Sharing Contract (PSC) covering the Tawke
license moving forward, replacing temporary arrangements in place since start of
operations.

The agreement also provides for a reconciliation of past accounts and
application of contract fiscal terms from inception until 1 June 2012. As a
result of this reconciliation, DNO International's share of Tawke oil sales over
a period of about eight weeks will be allocated to the KRG for local consumption
but the Company expects that its overall revenues for the year will remain
unchanged. The reconciliation calculations do not include payments not yet
received for exports through the Iraqi pipeline system in 2009 and again in
2011-12. When those payments are made, DNO International will receive its pro
rata share as provided for under the PSC.

"We are very pleased with this outcome and the overall trend towards
normalisation," said Bijan Mossavar-Rahmani, DNO International's Executive
Chairman. "The previous ad hoc arrangements put in place by the KRG provided us
tremendous support during difficult and uncertain periods and allowed us to
continue our investment programs," he added. "But now that we are firmly
established, our shareholders benefit from greater clarity and transparency as
to the status of the Tawke project and our other investments in the Kurdistan
Region of Iraq."

---
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, 24 July 2012

DNO International ASA
Corporate Communications

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



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
Thomson Reuters clients. The owner of this announcement warrants that:
(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#1628749]




Unternehmen: DNO International ASA - ISIN: NO0003921009