DNO ASA — Earnings Release 2015

May 6, 2015

DNO Doubles Capacity at Tawke, Reports First Quarter Results

DNO Doubles Capacity at Tawke, Reports First Quarter Results

Oslo, 6 May 2015 - DNO ASA, the Norwegian oil and gas operator, today announced

doubling of capacity at its flagship Tawke field in the Kurdistan region of Iraq

to 200,000 barrels of oil per day (bopd).

The 200,000 bopd wellhead, processing and pipeline capacity milestone was

reached in less than two years with 10 new horizontal wells and the construction

of two early production facilities with combined capacity of 80,000 bopd and the

installation of a new 44-kilometer, 24-inch pipeline.

Earlier in the week, the company hit a new Tawke daily production record of

156,379 barrels of oil and will ramp up output in the coming weeks by continuing

to commission facilities and open wells. Discussions are underway with the

Ministry of Natural Resources to set out future production levels, including the

split between export deliveries and local sales.

"We are very proud of bringing the Tawke 200,000 project to completion and

solidifying our position as the leading operator in Kurdistan," said Bijan

Mossavar-Rahmani, DNO's Executive Chairman. "Higher Tawke production, including

higher deliveries to Ceyhan, should help unlock payments to DNO," he said. "The

timing and extent of export payments will drive new investment at Tawke which

will be required to sustain the high production rates," Mr. Mossavar-Rahmani

added.

Overall output from Tawke during the first quarter averaged 104,925 bopd,

including 90,172 bopd delivered for export, 8,679 bopd sold into the local

market and the balance used in the Tawke refinery. Recent contracts have raised

local sales from Tawke to 20,000 bopd.

Weak local sales in Kurdistan in the first quarter and low oil prices led to

reduced revenues of USD 26 million. Write-downs of USD 27 million in Yemen

following suspension of production from the DNO-operated Block 32 and Block 43

due to a rapid deterioration in the country's security conditions contributed to

an operating loss of USD 69 million in the quarter. The company ended the first

quarter with USD 204 million in cash and USD 28 million in marketable

securities.

DNO's gross production in the first quarter from Kurdistan, Yemen and Oman stood

at 121,026 barrels of oil equivalent per day (boepd), of which company working

interest production stood at 72,873 boepd.

Capital expenditures in 2015 have been reduced to a projected USD 100 million,

of which USD 35 million was spent in the first quarter.

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

A live webcast of the presentation as well as the full interim quarterly report

will be available on the company website (www.dno.no).

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

company holding stakes in 19 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.

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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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