DNO ASA - Earnings Release 2015 | FinancialReports.eu

DNO Reports Improving Third Quarter 2015 Results

Oslo, 5 November 2015 - DNO ASA, the Norwegian oil and gas operator, reported

third quarter operated production of 152,507 barrels of oil equivalent per day

(boepd) with year-to-date volumes up nearly 30 percent from 2015. Output from

the company's flagship Tawke oil field in the Kurdistan region of Iraq averaged

145,184 barrels of oil per day (bopd), of which 120,633 bopd was delivered for

pipeline export through Turkey and the balance sold into the local market.

A Tawke export payment of USD 30 million (USD 22 million net to DNO) was

received during the third quarter, in addition to USD 24 million net to DNO from

local oil and refined product sales for total Kurdistan revenues during the

third quarter of USD 46 million. Revenues remain below DNO's contractual

entitlement from Tawke, although receivables are growing at a slower rate.

"With the worst of the oil price crisis behind us, we have sharpened our focus

on monetizing our share of Tawke production, including exploring new marketing

arrangements," said Bijan Mossavar-Rahmani, DNO's Executive Chairman. "Regular

export payments and a timetable for recovery of around USD 1 billion in

Kurdistan receivables are key to resuming Tawke investment necessary to reverse

natural field decline and sustain production," he added.

Mr. Mossavar-Rahmani estimated that the aggregate value of Tawke production is

USD 2 billion annually at current output and price levels.

Cost reduction measures initiated last year have been completed and following

four consecutive quarters of operating losses the company reported break-even

operating results in the third quarter.

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 North

Africa. 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, Yemen, Oman, the

United Arab Emirates, Tunisia and Somaliland.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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