DNO ASA — Earnings Release 2018

Jul 17, 2018

DNO Picks Up Peshkabir Production in Kurdistan

DNO Picks Up Peshkabir Production in Kurdistan

Oslo, 17 July 2018 - DNO ASA, the Norwegian oil and gas operator, today

announced a two-thirds increase in production from the Peshkabir field in the

Tawke license in the Kurdistan region of Iraq to 25,000 barrels of oil per day

(bopd) following completion of the Peshkabir-4 well testing program.

The well has been placed on production at a rate of 10,000 bopd through a

72/64" choke with 790 psi wellhead pressure through temporary, capacity-

constrained test facilities and the oil trucked to Fish Khabur for export.

The Peshkabir-4 well was designed as a high angle well to assess the central

part of the structure four kilometers west of the Peshkabir-3 well and drilled

to a measured depth of 3,525 meters, including a 1,150 meter extended reach

reservoir section. A total of 11 zones were tested and flowed between 1,500 bopd

and 7,000 bopd per zone.

The next well in the 2018 field development campaign, Peshkabir-5, has been

drilled seven kilometers west of Peshkabir-3 and has successfully proved the

westward extension of the field. Completed in June, it is currently undergoing

final testing; a total of four zones have been tested so far and flowed between

4,000 bopd and 7,500 bopd per zone. DNO will bring this well onstream in August

and expects to reach and surpass its previously announced summer 2018 Peshkabir

production target of 30,000 bopd.

"The pickup in Peshkabir production puts new meaning to the fast in fast track

in development of this field by the DNO team," said Bijan Mossavar-Rahmani,

DNO's Executive Chairman.  "And we expect Peshkabir to continue to surprise to

the upside," he added.

Two other wells, Peshkabir-6 and Peshkabir-7, are drilling ahead at 3,900 meters

and 3,100 meters, respectively. Peshkabir-6, a near vertical well, will explore

the field's deeper Triassic formation and establish the Cretaceous oil/water

contact level. Peshkabir-7 is a high angle producer well located between

Peshkabir-4 and Peshkabir-5.

The Peshkabir field was brought on production in 2017 and two drilled wells last

year, Peshkabir-2 and Peshkabir-3, have produced at a constant combined rate of

around 15,000 bopd.

DNO operates and has a 75 percent interest in the Tawke license, which contains

the Tawke and Peshkabir fields, with partner Genel Energy plc holding the

remainder. Together, output from the two fields has averaged 106,000 bopd year-

to-date.

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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,

Somaliland, Tunisia, 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.