DNO Accelerates West Heather Drilling Program

DNO previously announced that it was planning to drill the third of three West Heather appraisal/development wells in the first half of 2003. DNO and its farm-in partners, Palace Exploration Company and Challenger Minerals Inc. have agreed to accelerate the drilling of the third well.

Operations commenced on well 2/5-20 on October 10, 2002 immediately following the finalization of contractual arrangements. The well is targeted to a bottom-hole location midway between the previously drilled wells 2/5-8b (1977) and 2/5-18 (2001) and is being drilled on a turnkey basis using GlobalSantaFe's Glomar Arctic IV semisubmersible drilling rig. The well will be drilled to a total depth of around 11,800 feet and results are expected in around 40 days time.

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