DNO ASA — Earnings Release 2020

May 27, 2020

DNO Guides 2020 Production and Spend Ahead of Annual General Meeting

DNO Guides 2020 Production and Spend Ahead of Annual General Meeting

Oslo, 27 May 2020 - DNO ASA, the Norwegian oil and gas operator, today provided

production and spend guidance for the balance of the year ahead of its Annual

General Meeting this afternoon. The Company reported that it has implemented the

target 35 percent reductions across all spend categories to shrink its 2020

budget by USD 350 million to USD 640 million in response to turbulence and

uncertainty in global oil and financial markets triggered by the coronavirus

pandemic. While strengthening its balance sheet, cutbacks in spend will throttle

back 2020 Company Working Interest (CWI) production to a projected 88,000

barrels of oil equivalent per day (boepd), of which the Kurdistan region of Iraq

will contribute 71,000 barrels of oil per day (bopd) and the North Sea 17,000

boepd. DNO's CWI production averaged 104,800 boepd last year.

In Kurdistan, DNO has reduced the number of rigs deployed in drilling, testing

and workovers from five in 2019 and early 2020 to two; these two rigs are

believed to be the only ones currently active in Kurdistan, down from an overall

count approaching 20 last summer. Of the two active rigs, one is drilling the

Zartik-1 exploration well on the DNO-operated Baeshiqa license and the other is

a Tawke license workover rig that will shortly be moved for scheduled

maintenance. However, two third-party rigs have been warm stacked at the Tawke

and Peshkabir fields and can quickly be mobilized if oil prices climb and export

payments are regularized.

"Our cost cutbacks have been thoughtful and deliberate as we moved at warp speed

to preserve cash and our balance sheet," said Bijan Mossavar-Rahmani, DNO's

Executive Chairman. "The resulting reductions in oil production especially in

Kurdistan are reversible with a restart of drilling," he added. "We have not

lost reserves but simply parked a portion until the market recovers. And it

will."

Gross production at the DNO-operated Tawke license in the Kurdistan region of

Iraq containing the Tawke and Peshkabir fields, absent drilling of new infill

wells to arrest natural field decline, is expected to average 100,000 bopd in

2020. This reflects a drop from 115,210 bopd in Q1 2020 to 100,000 bopd in Q2

2020 and 90,000 bopd over the balance of the year. The Tawke license exit rate

at yearend 2020 is projected at 85,000 bopd absent new wells. Production

continues to be split 55-45 between the Tawke and Peshkabir fields.

On a CWI basis, DNO's production in Kurdistan in the second half of the year is

projected to average 65,000 bopd (81,220 bopd in Q1 2020 and an estimated

70,000 bopd in Q2 2020). CWI in North Sea operations will contribute another

17,000 boepd in the second half of 2020 (18,640 boepd in Q1 2020 and an

estimated 17,000 boepd in Q2 2020).

Budget cuts and the newly announced Norwegian production caps are not expected

to make a material change to DNO's 2020 North Sea projections; the majority of

the Company's fields subject to the restrictions are not fully utilizing their

previous higher production permits.

DNO ASA 2020 Projected Spend

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Q1 2020 Q2 2020 Q3+Q4 2020 2020 2019

Actual Projected Projected Projected Actual

USD million USD million USD million USD million USD million

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Exploration

expenditures 34 36 65 135 187

Capital

expenditures 78 37 40 155 339

Operating

expenditures 59 49 92 200 237

Abandonment

expenditures 17 7 7 31 23

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Operational spend 187 129 204 520 786

Other 40 34 46 120 203

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TOTAL 227 163 250 640 989

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Note: Figures above are pre-tax (i.e., before exploration tax refund in Norway).

The category

"Other" includes general and administrative expenditures (G&A), net interest

payments and

dividend distributions.

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For further information, please contact:

Media: media@dno.no

Investors: investor.relations@dno.no

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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, the United

Kingdom, Netherlands, Ireland and Yemen.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.