DNO ASA — Earnings Release 2015

Aug 20, 2015

DNO Seeking Ongoing Revenues to Sustain Kurdistan Operations; Reports Second Quarter 2015 Results

DNO Seeking Ongoing Revenues to Sustain Kurdistan Operations; Reports Second Quarter 2015 Results

Oslo, 20 August 2015 - DNO ASA, the Norwegian oil and gas operator, set record

production levels from the Tawke field in the Kurdistan region of Iraq during

the second quarter of 2015 with output averaging 153,346 barrels of oil per day

(bopd). A total of 118,037 bopd, representing 77 percent of field production,

was delivered to the Kurdistan Regional Government for pipeline export through

Turkey. An additional 31,378 bopd was sold into the local market and the balance

processed in the company's Tawke refinery.

Company-wide revenues increased to USD 55 million, up from USD 26 million in the

first quarter. Net loss declined to USD 40 million from USD 61 million in the

first quarter.

Kurdistan's Ministry of Natural Resources recently announced plans to allocate

monthly payments from its independent oil sales to DNO and other operators from

September onwards. "We welcome regular export payments which are necessary to

sustain our operations in Kurdistan," said Bijan Mossavar-Rahmani, DNO's

Executive Chairman. "Without such payments, we will not be in a position to make

further investments," he added, "and without further investments, production

from the Tawke field will decline."

Discussions are ongoing with the Kurdistan Regional Government to allocate

export revenues to DNO on a regular, predictable and ongoing basis, consistent

with the company's contractual entitlements.

DNO's receivables from the Kurdistan Regional Government for past Tawke

production approached USD 1 billion at the end of the second quarter, of which

USD 829 million represented unbooked revenues for export sales and USD 118

million represented booked revenues for local sales and refined product sales.

Gross production stood at 162,422 barrels of oil equivalent per day (boepd)

during the quarter, including 9,076 boepd from offshore Block 8 in Oman.

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For further information, please contact:

Media: media@dno.no

Investors: investor.relations@dno.no

Tel: +47 911 57 197

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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.

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This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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