DNO ASA — Earnings Release 2019

Jul 31, 2019

DNO Reports Solid First Half 2019 Results, Record Activity

DNO Reports Solid First Half 2019 Results, Record Activity

Oslo, 31 July 2019 - DNO ASA, the Norwegian oil and gas operator, today

announced solid first half 2019 financial and operating results as the Company

continued to deliver the largest drilling program in its 48-year history. H1

2019 revenue totalled USD 470 million, up 62 percent from the same period last

year, while net profit doubled to USD 119 million.

DNO's Company Working Interest (CWI) production averaged 107,100 barrels of oil

equivalent per day (boepd) in H1 2019, up 39 percent from H1 2018, reflecting

strong contributions from its fields in the Kurdistan region of Iraq (89,300

barrels of oil per day or bopd) as well as from its recently acquired North Sea

assets (17,800 boepd).

In Kurdistan, H1 2019 gross production at the Tawke license containing the DNO-

operated Tawke and Peshkabir fields (shared 75-25 with Genel Energy plc)

averaged 126,700 bopd, up 20 percent from H1 2018. In H1 2019, Tawke contributed

71,700 bopd and Peshkabir 55,000 bopd.

Some 36 wells are planned in 2019 of which 23 are development/infill wells and

13 exploration/appraisal wells. DNO projects full-year operational spend of USD

680 million, split evenly between its core areas in Kurdistan and the North Sea.

In addition to 15 wells spud in the first half of the year across the portfolio,

plans for the second half include 12 wells at Tawke and three at Peshkabir, now

the second largest operated field by an international oil company in Kurdistan

after Tawke. Also in Kurdistan, two wells have been drilled and completed in the

DNO-operated Baeshiqa license with the deeper well to be tested beginning in

August.

Elsewhere, the Company continues to pursue an active North Sea strategy with

plans to drill six more wells in the second half of the year in addition to the

nine spud in the first half. Also, DNO was recently awarded as operator two new

exploration licences in the United Kingdom.

DNO exited the second quarter with a cash balance of USD 574 million in addition

to USD 94 million in treasury shares and marketable securities.

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For further information, please contact:

Media: media@dno.no (mailto:media@dno.no)

Investors: investor.relations@dno.no (mailto: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, the United Kingdom and Yemen.

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