DNO Updates on the Company’s Reserves; Shares Up

Shares in DNO International ASA, the Norwegian oil and gas company, closed up 6.7% on Thursday following an update on the company’s resources.

The company released updated estimates setting its remaining proved plus probable (2P/P50) company working interest reserves at 502 million barrels of oil (including condensate and other liquids) and 165 billion cubic feet of gas at 31 March 2012, up from a total of 372 million barrels of oil at 31 December 2011.

The new figures are contained in a Competent Person Report prepared by independent petroleum consultants DeGolyer and MacNaughton ahead of a possible listing of DNO International’s shares in London.

The revised figure for oil, an increase of 35 percent over the 31 December 2011 estimate, incorporates data from wells recently completed or underway at the Tawke field located in the Kurdistan region of Iraq. DNO International’s remaining proved plus probable company working interest share of Tawke reserves is 455 million barrels at 31 March 2012 compared to 346 million barrels at 31 December 2011.

Also included in the new DeGolyer and MacNaughton figures are remaining proved plus probable company working interest reserves of 21 million barrels of oil (including condensate and other liquids) and 165 billion cubic feet of gas acquired from RAK Petroleum PCL in a merger that closed earlier this year.

DeGolyer and MacNaughton’s 31 March 2012 estimate of Tawke’s gross ultimate proved plus probable reserves is 771 million barrels versus 615 million barrels at 31 December 2011.

“These latest numbers firmly place DNO International in the ranks of the largest independent exploration and production companies globally in terms of reserves,” said Bijan Mossavar-Rahmani, Executive Chairman. “We have established a growth portfolio across the Middle East and North Africa with Tawke as its centerpiece.”

Company working interest, as reported by DeGolyer and MacNaughton, is calculated based on DNO International’s contractual share of operating expenses and capital costs, including any carried interests and reduced by any royalty burden, for a particular asset.

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