DNO ASA — Earnings Release 2015

Feb 11, 2016

DNO ASA Reports 2015 Results

DNO ASA Reports 2015 Results

Oslo, 11 February 2016 - DNO ASA, the Norwegian oil and gas operator, today

reported record oil and gas output in 2015 though the company's results were

impacted by the sharp drop in world oil prices. Operated production was up 23

percent last year to 144,200 barrels of oil equivalent per day while revenues

dropped to USD 187 million in 2015, down 59 percent from 2014.

Releasing its preliminary 2015 fourth quarter and annual results, the company

announced plans to resume investments at its flagship Tawke field in the

Kurdistan Region of Iraq, following five consecutive monthly payments for oil

exports and a new payment arrangement tied to its contractual entitlements.

"As much of the industry continues to hunker down, DNO's foot is coming off the

brake and pressing on the accelerator," said DNO's Executive Chairman Bijan

Mossavar-Rahmani.

"The export payment arrangement just put in place provides regularity,

predictability and transparency, thereby laying the foundation for stepped up

investments in Kurdistan," he added.

New investments at Tawke are expected to reverse natural field decline and boost

output by at least 10 percent by mid-year, with further output increases to

follow as additional investments are made. The company also plans to drill the

Peshkabir-2 appraisal well this year. If successful, DNO plans to quickly tie

back the Peshkabir field to existing infrastructure at Fish Khabur only 10

kilometers away.

"DNO has already pulled away from the pack in Kurdistan in terms of production

and exports, currently contributing nearly 60 percent of export volumes by the

international oil companies," said Mr. Mossavar-Rahmani.  "In addition to the

scale and attractive economics of DNO's oil reserves -- unrivaled among our peer

group -- we have balance sheet strength to weather the oil price storm and will

emerge from this crisis stronger and more profitable," he added.  "We are

stubbornly resilient."

The company reported a 2015 operating loss of USD 174 million (operating loss of

USD 243 million in 2014) on the back of lower revenues, restructuring and

impairment charges. DNO ended the year with a cash balance of USD 238 million,

up from USD 114 million in 2014.

DNO ASA presents its full-year financial and operating results in Oslo at 10:00

CET today. A live webcast of the presentation as well as the full Fourth Quarter

and Full Year 2015 Interim 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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