DNO’s accumulated production in the 3rd quarter of 2007 was 1.8 million barrels, equivalent to 19,685 bopd, and the average achieved oil price was 58.10 USD per barrel.

The combined NCS production from the Glitne and Enoch fields increased by 5 percent in September.

In Yemen the Nabrajah field was shut down for 3 days and produced at reduced rates for 7 days in September due to repair on the flare stack. This resulted in the reduced production output quoted for September. The Bayoot SW well # 3 in Block 53 was put on production towards the end of September, producing at a gross flow rate of around 1,600 bopd. The well will be shut-in for a period in October for acquisition of reservoir data before being brought on permanent production.

The Kurdistan test production is presented as working interest including DNO entitlement to cost oil, and the production from Tawke increased by 16 percent in September. The Tawke test production is delivered directly from the well site at very low costs. The test production will now be switched from the upper reservoir to the lower reservoir. This combined with the Id holidays following the end of Ramadan, will result in lower test production output from the Tawke field during October.

As an integrated part of its operations, the Company has during the past three years been continuously monitoring all aspects of operating in Northern Iraq in close cooperation with KRG. Neither the past nor the recent geopolitical events in the region has to date affected any of DNO's operations.