In mid-morning trading, the stock was trading at 54.50 crowns, valuing the firm at 12.2bn crowns ($1.9bn).
DNO has been one of the best performers on the Oslo stock exchange over the past year, buoyed by higher crude prices and the outlook for new wells.
The company already produces some oil in the North Sea and Yemen, and should its field in northern Iraq yield results, it will be the first foreign firm to pump crude in the country since the US-led invasion.
"DNO is currently undertaking feasibility studies for future possible oil production from the Tawke Area, including a fast-track option," the company said in a statement.
