DNO Encouraged by Nabrajah #5 Preliminary Results

DNO says the evaluation of electrical logs in Nabrajah #5 indicates the presence of hydrocarbons in a 42 meter gross interval in the Kohlan Formation overlaying the Basement. Two production tests will be conducted in the well; one in the Basement interval and one in the overlaying dolomites.

As previously reported strong hydrocarbon indications were observed during drilling the section immediately above the Basement interval as well as in the upper part of the Basement.

In the dolomite section of the Kohlan Formation immediately above the Basement observations of heavier hydrocarbons were observed during drilling, which could indicate the presence of oil. The evaluation of electrical logs over this section indicates a 42 meter gross hydrocarbon bearing interval. This is considered as a significant column of possible moveable hydrocarbons.

In order to confirm the nature and productivity of the hydrocarbons in the Kohlan formation a production test will be conducted. Should oil be produced at commercial rates from the Kohlan Formation this opens up the possibility for a new oil play with substantial potential within the Nabrajah area.

A production test of the Basement will also be conducted in order to evaluate the significance of the hydrocarbons observed during drilling.

The forward plan is to set a liner across the dolomite section before running an open hole test in the Basement. Thereafter a test will be conducted in the dolomite section of the Kohlan Formation

. DNO is the Operator of Block 43 holding a 56.67 % working interest.