DNO ASA — Earnings Release 2014

Oct 15, 2014

DNO ASA: DNO Updates Operations

DNO ASA: DNO Updates Operations

Oslo, 15 October 2014 -- DNO ASA, the Norwegian oil and gas operator, today

announced commencement of drilling of the Jawhara-3 well, the first of several

exploration and appraisal wells planned in the Sfax Offshore Exploration Permit

in the Republic of Tunisia. It will be drilled four kilometers north of the

Jawhara-1 discovery well, which flowed 1,500 barrels of oil per day, and will

test the Douleb and Bireno reservoirs in the up dip Jawhara structure. A second

exploration well will follow in the first half of 2015.

In the Kurdistan region of Iraq, DNO is logging the 834 meter horizontal section

of the recently drilled Tawke-28 well and plans to place the well on production

by early November. The next horizontal well in the field development program,

Tawke-27, will spud shortly thereafter.

Elsewhere in Kurdistan, the Benenan-4 well has indicated higher volumes of oil

in place in the Erbil license with movable Najmeh oil tested deeper than in

previously drilled Benenan field wells. Further testing and evaluation are

underway.

On the Dohuk license, DNO continues to re-assess the Summail field development

plan in light of sharply declining gas production from the first two wells, one

of which is now shut-in. A recently completed third well targeting deep gas did

not encounter significant volumes of gas but instead discovered a 200 meter oil

column in the Cretaceous interval by testing oil in the well's three deepest

zones. The Summail-1 well had earlier confirmed the presence of heavy oil in the

Jurassic interval.

The company has taken steps to mitigate delays to its Tawke 200,000 barrel per

day deliverability target resulting from the withdrawal of third party

contractors from Kurdistan during the past few months. Installation of the new

24 inch pipeline connecting the Tawke field to Fish Khabur is proceeding and

slated for completion by yearend. The new pipeline will increase export capacity

and provide transportation system redundancy. Other upgrades to infrastructure

and facilities to increase production and processing capacity at the Tawke field

are progressing as planned.

Meanwhile, exports of Tawke oil to Turkey by the Kurdistan Regional Government

for its own account currently average approximately 90,000 barrels per day.

Local sales decreased to 29,960 barrels per day during the third quarter and

currently average approximately 20,000 barrels per day.

In the Sultanate of Oman, offshore Block 8 production continues at a daily

average rate of 9,000 barrels of oil and liquids and 45 million cubic feet of

gas. In Block 36 the company has launched a 1,000 kilometer, 2-D seismic

acquisition campaign after completing the reprocessing of 2,200 kilometers of

existing 2-D seismic data. An exploration well is planned in this onshore block

during 2015.

Production in the Republic of Yemen, too, remains stable at over 7,000 barrels

per day across the operated and non-operated blocks, notwithstanding the current

security and political environment. However, DNO is not yet able to resume

drilling activities or the development of previous discoveries. Force majeure

has been declared on all producing blocks in which DNO holds an interest.

--- DNO ASA is an Oslo-listed, Middle East and North Africa focused oil and gas

company holding stakes in 20 blocks in various stages of exploration,

development and production both onshore and offshore in the Kurdistan Region of

Iraq, the Republic of Yemen, the Sultanate of Oman, the United Arab Emirates,

the Tunisian Republic and Somaliland ---

Oslo, 15 October 2014

DNO ASA

Corporate Communications

Queries: Bjorn Dale (bjorn.dale@dno.no or +47 911 57 197)

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1862980]