DNO Offers Shares in Exchange for RAK Petroleum Oil and Gas Operating Subsidiaries in Heads of Agreement

Dubai, 4 July 2011-- RAK Petroleum Public Company Limited, (RAK Petroleum), the oil and gas exploration and production company, and Norway’s DNO International ASA (DNO) and have signed a heads of agreement to merge RAK Petroleum’s Middle East and North Africa (MENA) operating subsidiaries into DNO in exchange for DNO shares to be issued to RAK Petroleum. The consideration shares will be issued at a minimum DNO share price of NOK 8.25 and a maximum share price of NOK 10.00 against a value of the RAK Petroleum MENA assets between USD 250 and 300 million.