DNO ASA — Earnings Release 2018

Apr 26, 2018

DNO Expands and Accelerates Kurdistan Operations While Building Up North Sea Exposure; Reports Robust First Quarter 2018 Results

DNO Expands and Accelerates Kurdistan Operations While Building Up North Sea Exposure; Reports Robust First Quarter 2018 Results

Oslo, 26 April 2018 - DNO ASA, the Norwegian oil and gas operator, today

announced expansion and acceleration of operations in the Kurdistan region of

Iraq while building up its North Sea exposure. First quarter revenues, the

highest in nearly four years, stood at USD 142 million and net profit at USD 18

million. The Company exited the quarter with cash balances of USD 518 million

plus USD 76 million in treasury shares and marketable securities.

The Company added a third license in Kurdistan following government and partner

approvals of the previously announced transaction with ExxonMobil. Effective 10

April 2018, DNO assumed operatorship of the Baeshiqa license with a 40 percent

(32 percent participating) interest alongside ExxonMobil, Turkish Energy Company

and the Kurdistan Regional Government.

At the Tawke license, the Company fast tracked development of the Peshkabir

field with three new wells. The recently completed Peshkabir-4 well will shortly

undergo production testing and the Peshkabir-5 well is drilling ahead at 2,250

meters. The Peshkabir-6 well was spudded as a development well last week and

will also explore the field's deeper Triassic formation.

"We have the wind on our back," said DNO's Executive Chairman Bijan Mossavar-

Rahmani, "with higher oil prices, timely export payments in Kurdistan, a growing

portfolio of quality assets, efficient drilling and bold strategy execution."

On the DNO-operated Tawke license containing the Peshkabir and Tawke fields,

15,000 barrels of oil per day (bopd) of production from two Peshkabir wells are

comingled with 90,000 bopd from the flagship Tawke field for export through

Turkey. A new Tawke Cretaceous well was brought onstream earlier this month at

more than 5,000 bopd. The Company will drill additional Tawke development wells

in 2018 following mobilization of a fourth rig.

Elsewhere, the Company acquired 28.71 percent of North Sea-focused Faroe

Petroleum plc at a price of GBP 1.25 per share through four separate

transactions in April, complementing DNO's existing portfolio of 19 exploration

licenses offshore Norway and the United Kingdom.

DNO's current cash balance stands at USD 356 million plus USD 280 million in

treasury shares and marketable securities. The Company's outstanding bond debt

remains at USD 400 million and the equity ratio at 61 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 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.