DNO ASA — Earnings Release 2017

Aug 24, 2017

DNO Reports Strong Half-Year 2017 Performance

DNO Reports Strong Half-Year 2017 Performance

Oslo, 24 August 2017 - DNO ASA, the Norwegian oil and gas operator, today

announced half-year 2017 revenues were up 43 percent from the same period last

year following regular export payments in the Kurdistan region of Iraq. Free

cash flow jumped four-fold to USD 157 million on operated production of 114,000

barrels of oil equivalent per day (boepd) during the first half of the year.

DNO's cash balance rose USD 120 million during the first six months to USD 381

million, reducing net debt to USD 19 million. Planned 2017 capital expenditures

have been increased to USD 130 million, up from the guidance set earlier this

year of USD 100 million.

The Company mobilized a third rig as part of an expanded drilling program at its

flagship Tawke field comprising 10 production wells in 2017, of which six are

deep Cretaceous and four shallow Jeribe wells.

Also on the Tawke license, the Peshkabir-2 well has been producing from the

Cretaceous reservoir at a steady rate of 4,700 barrels of oil per day (bopd) of

28° API crude oil since June. The well can produce an additional 2,500 bopd of

24° API crude oil from the Jurassic reservoir.

The Peshkabir-3 well, spud in July, is drilling at 2,400 meters towards target

depth of 4,000 meters to appraise the northern extension of the Cretaceous

reservoir. An early production facility has been acquired for installation at

the field, with both Peshkabir wells planned onstream by year-end and two

additional wells planned in 2018.

Elsewhere, the Company will participate in Norway's two upcoming licensing

rounds in the autumn and expects to add to its 11 North Sea licenses acquired

earlier this year.

Offshore Oman, the West Bukha-5B well was drilled to 4,500 meters and tested oil

but would not flow naturally and has been shut in pending completion of

artificial lift studies. The Company has impaired the drilling costs in its

half-year accounts. Separately, the Bukha-1 well umbilical replacement and

production reinstatement is nearly complete.

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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.