DNO ASA- December Production Update

DNO's oil production (WI) for December, fourth quarter and twelve months 2006 was as follows (bopd):

 

 

The decline in WI production to DNO from Yemen by 1,050 bopd compared to November was due to the expected decline in production from the latest well on the Tasour Field (Tasour # 22ST), a four days shut down at the Godah Field due to various installation work to increase water handling, well repair work as well as commissioning work at the Nabrajah Field.

 

DNO's production from the Glitne Field was stable compared to November.

 

Due to additional installation work on the Godah Field and delayed commissioning work on the Nabrajah Field during the fourth quarter, the 2006 exit production was lower than the revised forecast of 15,000 bopd. A more detailed production report together with 2007 production guidance will be given at the fourth quarter interim presentation on 14 February 2007.

 

Net Entitlement

 

The net entitlement estimates are provided to shareholders and investors in order to facilitate analysis of the company's revenue development, as presented in DNO's mandatory financial statements. It should be noted that the monthly net entitlement production figures represent preliminary estimates that may be subject to revision.

 

 

 

 

The estimated net entitlement production is up by 589 bopd compared to November. This was due to high activity and increased investments at Bl 32 & 53 which increased the portion of oil going to DNO in December.

The production figures (WI and net entitlement) include crude oil consumed in the operation of the Tasour Field, at a volume of approximately 170 bopd. in December.

 

January 18, 2007