DNO ASA - Capital/Financing Update 2018

DNO Completes USD 400 Million Bond Placement

18 May 2018 - DNO ASA, the Norwegian oil and gas operator, has completed the

private placement of USD 400 million of new, five-year senior unsecured bonds to

be issued at 100 percent of par with a coupon rate of 8.75 percent. The bond

placement received strong investor demand across international markets and was

oversubscribed.

The bond issue is expected to be settled on or about 31 May 2018, subject to

customary conditions precedent. An application will be made for the bonds to be

listed on the Oslo Stock Exchange. In connection with the bond placement, the

Company has agreed to roll over USD 200 million in nominal value of DNO01 bonds

(ISIN: NO0010740392) at 103.25 percent of par plus accrued interest into the new

bond. The rolled over bonds will be canceled and USD 200 million of outstanding

DNO01 bonds will remain. Net proceeds from the new bonds will be used towards

refinancing the outstanding DNO01 bonds and for general corporate purposes.

Pareto Securities AS acted as lead manager and bookrunner with Danske Bank and

SpareBank 1 Markets AS as co-managers and bookrunners.

For further information, please contact:

Tel: +47 911 57 197

DNO ASA is a Norwegian oil and gas operator focused on the Middle East and the

North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, the Company

holds stakes in onshore and offshore licenses at various stages of exploration,

development and production in the Kurdistan region of Iraq, Norway, Oman,

Somaliland, Tunisia, the United Kingdom and Yemen.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

This release does not constitute any offer or solicitation to sell or purchase

any securities.

The release may not be released, published or distributed in the United States

of America or any other jurisdiction where release, publication or distribution

would be prohibited or require any registration or filing acts or similar.

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