DNO ASA — Earnings Release 2018

Oct 9, 2018

DNO Operations Update: Peshkabir Production Pushes 50,000 bopd

DNO Operations Update: Peshkabir Production Pushes 50,000 bopd

Oslo, 9 October 2018 - DNO ASA, the Norwegian oil and gas operator, today

announced production at the Peshkabir field in the Kurdistan region of Iraq has

ramped up to 50,000 barrels of oil per day (bopd), meeting the end-2018 target

ahead of schedule and below budget.

One of two recently completed wells, Peshkabir-7, is producing over 10,000 bopd

from nine Cretaceous zones through temporary test facilities and exported. The

other, Peshkabir-6, drilled as a production well, but with the additional

objective of appraising deeper formations, has established a deeper Cretaceous

oil/water contact level than previously estimated. Further testing is underway,

including test production of multiple producing zones.

The Peshkabir-8 well, spud in late August, is drilling ahead at 2,325 meters.

Once completed, the rig will move to spud Peshkabir-9 in November.

Four other wells at Peshkabir now produce at a combined rate of close to 40,000

bopd following a workover at Peshkabir-3 which boosted production from that well

to 11,000 bopd from 8,000 bopd.

Peshkabir production is processed through temporary test facilities until

commissioning of a central processing facility with a capacity of up to 50,000

bopd by end-2018. The Company is also installing a 10-inch pipeline from

Peshkabir to Fish Khabur with a capacity of 60,000 bopd. Field production is

currently transported to Fish Khabur by tanker truck and a 6-inch pipeline.

At the Company's flagship Tawke field, the Tawke-50 shallow Jeribe well drilled

to a depth of 320 meters will be brought on production within several days. The

Tawke-49 Cretaceous well is drilling ahead at 2,245 meters and will be completed

later this month. Two additional Tawke wells, one each in the Jeribe and the

Cretaceous, will be drilled by the end of the year. Workovers are also underway

at two wells. Tawke production currently stands at just over 80,000 bopd.

Elsewhere in Kurdistan, the Company is about to spud its first well at the

Baeshiqa license. Baeshiqa contains two undrilled structures with multiple

target reservoirs in the Cretaceous, Jurassic and Triassic. The first well will

target the Cretaceous and will be followed by a back-to-back well to test the

deeper Jurassic and Triassic on the same structure. A third well to test the

Jurassic and Triassic on a separate structure will be drilled in 2019.

"We are all in on our Kurdistan operations and delivering," said DNO's Executive

Chairman Bijan Mossavar-Rahmani. "Peshkabir continues to exceed expectations and

we are eager to probe the promising potential at Baeshiqa," he added.

In Norway, the Company will participate in two exploration wells to be spud in

2018. DNO currently holds 21 licenses in the country and plans an additional

five exploration wells next year. The Company's growing Norway portfolio is

complemented by a 28.22 percent shareholding in UK-listed Faroe Petroleum plc.

"With USD 1 billion in financial assets, including more than USD 600 million in

cash and the balance in marketable securities and treasury shares, we are well-

positioned to grow our footprint in Kurdistan and Norway with the drill bit and

the acquisition of producing assets," said Mr. Mossavar-Rahmani.

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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 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, the

United Kingdom and Yemen.

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This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.