DNO Receives Unsolicited Offer for Tawke License

The Board of Directors of DNO ASA has received an unsolicited expression of interest from a reputable financial advisor on behalf a large international oil company for DNO's license shares in Kurdistan / Northern Iraq for an indicative price of up to USD 700 Million. The price indication was based on information available in the market as of early July 2007.

The Board of Directors of DNO ASA has reviewed the interest and decided not to pursue the matter further.

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