DNO ASA — Earnings Release 2019

Feb 6, 2020

DNO Reports Record Revenues, Production; Steps Up Returns to Shareholders

DNO Reports Record Revenues, Production; Steps Up Returns to Shareholders

Oslo, 6 February 2020 - DNO ASA, the Norwegian oil and gas operator, today

reported interim 2019 revenues of USD 971 million, the highest in the Company's

48-year history, on the back of acquisitions and a record drilling campaign

driving a 28 percent year-on-year increase in Company Working Interest (CWI)

production to 104,800 barrels of oil equivalent per day (boepd). Net profit last

year stood at USD 74 million.

The Company exited 2019 with a cash balance of USD 486 million and USD 145

million in marketable securities.  The cash balance excludes two delayed export

payments totaling USD 107 million net to DNO received from the Kurdistan

Regional Government in 2020.

In January 2020, DNO completed a buyback program of up to 10 percent of own

shares, having acquired 108,381,415 shares at a weighted average price of NOK

10.61 per share (for a total cost of USD 129 million). The Board of Directors

has called for an Extraordinary General Meeting later this month to seek

shareholder approval to cancel the treasury shares.

The Board of Directors also plans to approve distribution of the next semi-

annual dividend of NOK 0.20 per share in March 2020, following which DNO will

have returned USD 200 million to shareholders since August 2018.

Last year, the Company delivered its largest ever annual drilling program with

36 wells drilled or spudded across its portfolio, of which 24 were

development/infill and 12 exploration/appraisal wells. Planned operational spend

(capital and exploration expenditures plus lifting costs) will remain high in

2020 at USD 650 million.

In Kurdistan, gross production from the two fields in the DNO-operated Tawke

license climbed to 124,000 barrels of oil per day (bopd) in 2019 (87,400 bopd

CWI), up from 113,100 bopd in 2018 (79,700 bopd CWI). Average production of

122,800 bopd in the fourth quarter of 2019 was up 3,000 bopd from the previous

quarter. In November 2019, the Company reported a discovery in its operated

Baeshiqa license, with the well now undergoing a workover prior to resumption of

acid stimulation and testing of remaining reservoirs to assess commerciality.

Through acquisition of Faroe Petroleum plc, the Company added North Sea

production of 17,400 boepd in 2019. Average production of 19,000 boepd in the

fourth quarter of 2019 was up 4,100 boepd from the previous quarter. The Company

was awarded 10 licenses in Norway's Awards in Predefined Areas (APA) 2019

licensing round adding to the 87 licenses already held in Norway and 15 across

the United Kingdom, the Netherlands and Ireland. Of these licenses, 28 are on

production (13 fields) and the balance in various stages of evaluation,

exploration and development.

The Peshkabir-to-Tawke gas gathering and reinjection project designed to

increase oil recovery rates at Tawke while eliminating flaring at Peshkabir will

be completed in spring 2020. Once completed, CO(2) emissions from DNO's operated

Kurdistan fields are expected to drop to around 7 kilograms per barrel, compared

to an industry average of about 9 kilograms per barrel in Norway and about 18

kilograms per barrel globally.

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For further information, please contact:

Media: media@dno.no

Investors: investor.relations@dno.no

Tel: +47 23 23 84 80

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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.