DNO ASA — Earnings Release 2014

Aug 21, 2014

DNO ASA: DNO Reports Second Quarter 2014 Results; Marks 10th Anniversary in Kurdistan

DNO ASA: DNO Reports Second Quarter 2014 Results; Marks 10th Anniversary in Kurdistan

Oslo, 21 August 2014 - DNO ASA, the Norwegian oil and gas operator, today

announced second quarter 2014 net profit of USD 44 million on operating revenue

of USD 143 million. Production climbed to a record 138,569 barrels of oil

equivalent per day (boepd), up 76 percent from the first quarter. Company

working interest (CWI) production jumped 78 percent from the previous quarter

to 81,669 boepd.

Notwithstanding significant quarterly investments of USD 97 million, DNO

maintained its strong financial position with free cash balances of USD 195

million at the end of the quarter. In addition to cash, the Company held USD

104 million in financial assets, including a 4.7 percent stake in RAK Petroleum

PCL, with the balance in DNO treasury shares.

"We've had feet on the ground in Kurdistan for ten years, including during the

recent crisis as well as in past ones, and remain fully and firmly committed to

our operations," said Bijan Mossavar-Rahmani, DNO's Executive Chairman. The

Company last quarter celebrated its 10(th) anniversary as the first Western oil

company to explore in Kurdistan by setting three new single day records at the

Tawke field: daily production record of 133,192 barrels, daily deliveries to

Fish Khabur for onward transfer to Ceyhan of 126,048 barrels and daily local

sales of 114,760 barrels.

"Our next challenge is to properly monetize all oil produced at Tawke by tapping

international markets," said Mr. Mossavar-Rahmani.

In addition to previously reported plans to expand production at the Tawke and

Benenan fields in Kurdistan, DNO will launch later this year an active

exploration campaign in a new onshore block in Oman and commence exploration and

appraisal drilling offshore Tunisia.

DNO will present its financial and operating results today in Oslo at 10:00 CET

(09:00 GMT). A live webcast of the presentation as well as the full second

quarter 2014 interim report will be available on the Company website

(www.dno.no).

--- 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, 21 August 2014

DNO ASA

Corporate Communications

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

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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