DNO ASA — Earnings Release 2017

Nov 9, 2017

DNO Flows Peshkabir-3 Well, Reports Strong Third Quarter Results

DNO Flows Peshkabir-3 Well, Reports Strong Third Quarter Results

Oslo, 9 November 2017 - DNO ASA, the Norwegian oil and gas operator, today

announced flow rates of more than 3,000 barrels of oil per day (bopd) from the

first zone tested in the Peshkabir-3 well in the Kurdistan region of Iraq. Nine

other oil zones and one gas zone have been identified for testing in a 1.2

kilometer horizontal section of Cretaceous and Jurassic reservoir.

The Company has fast tracked the development of the field and an early

production facility will be commissioned by year-end. The previously drilled

Peshkabir-2 well has produced at a steady rate of 4,700 bopd since May and

comingled with over 100,000 bopd from the adjacent Tawke field for export. DNO's

operations in Kurdistan continue uninterrupted.

DNO is the most active driller in Kurdistan with three rigs deployed and 15

wells in 2017 across three operated fields in various stages of production,

development and appraisal. Most recently, the Company spud the Hawler-1A

multilateral well in October to appraise the Benenan heavy oil field in the

Erbil license.

The Company has received year-to-date export payments totaling USD 297 million

net to DNO, up from USD 210 million during the full-year 2016. With continuing

export payments, DNO will step up investments in Kurdistan in 2018.

The Company today released its third quarter operating and financial update,

reporting an operating profit of USD 469 million during the quarter. This

follows recognition of USD 556 million as other income following the receivables

settlement agreement with the Kurdistan Regional Government in August 2017.

Pursuant to the agreement, DNO was assigned an additional 20 percent in the

Tawke license, bringing the Company's operated stake to 75 percent. Partner

Genel Energy plc holds the remaining 25 percent interest.

DNO's cash balance stood at USD 399 million at the end of the third quarter, up

from USD 261 million at end-2016. With the strengthening of its balance sheet,

the Company's equity ratio has increased to 60 percent.

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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-North

Africa region and the North Sea. 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, Norway, Oman, Somaliland, Tunisia, Yemen and the United Kingdom.

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This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.