DNO ASA — Earnings Release 2021

Nov 4, 2021

DNO Reports Third Quarter 2021 Results

DNO Reports Third Quarter 2021 Results

Oslo, 4 November 2021 - DNO ASA, the Norwegian oil and gas operator, today

reported third quarter revenues of USD 253 million, a 38 percent quarter-on-

quarter increase driven by higher North Sea sales and strengthening commodity

prices. The Company's operating profit climbed seven percent to USD 65 million,

weighed down by non-cash net impairments of USD 40 million primarily related to

revised Ula area cost and production profiles in the North Sea.

Cash flow from operating activities totaled USD 163 million in the third

quarter. Net debt was reduced by USD 36 million to USD 360 million, the lowest

level since 2018.

"Like much of the rest of our resilient industry, we are recovering rapidly from

the early ravaging of the oil and gas markets by the runaway pandemic," said

DNO's Executive Chairman Bijan Mossavar-Rahmani. "We are back delivering value

to our host countries, shareholders and other partners in an efficient and

responsible manner," he added.

Gross operated production at the Company's flagship Tawke license in Kurdistan

averaged 105,200 barrels of oil per day (bopd) in the third quarter, of which

the Peshkabir field contributed 59,900 bopd and the Tawke field 45,300 bopd. Of

the total, 78,900 bopd were net to DNO. In the North Sea, net production

averaged 13,100 barrels of oil equivalent per day (boepd), bringing the

Company's total third quarter net production to 92,000 boepd.

DNO's USD 110 million Peshkabir-Tawke gas project, which was commissioned in

mid-2020, has injected eight billion cubic feet of otherwise flared gas through

the end of the third quarter, capturing 480,000 tonnes of CO2 equivalent. In

September, the Company initiated a USD 25 million second phase of the gas

capture project to reinject and retain gas in the Tawke reservoir and avoid

flaring. Having already eliminated routine venting of methane in operations in

2019, DNO recently launched a leak detection and repair initiative to measure,

monitor and mitigate fugitive methane emissions.

Elsewhere in Kurdistan, commerciality was declared on the DNO-operated Baeshiqa

license and plans submitted for a fast-track development.

DNO's active North Sea exploration program notched up a success in the third

quarter with appraisal drilling on the 2020 Bergknapp discovery (DNO 30 percent)

resulting in a 35 percent upgrade of DNO's recoverable resource estimate. Also

during the quarter, DNO made an oil discovery on the Gomez prospect (DNO 65

percent and operator). Due to uncertainty of producibility, no estimate of

recoverable volumes has been established pending further analysis. Another third

quarter 2021 appraisal well, Black Vulture (DNO 32 percent), was dry. Following

the end of the quarter, the Mugnetind exploration well (DNO 30 percent)

encountered limited hydrocarbons and is unlikely to be commercial.

The Brasse development (DNO 50 percent and operator) is on track for a 2022

project sanction with DNO recently entering into a strategic framework agreement

with Technip FMC covering subsea deliveries (SURF and SPS).

During the third quarter, the Company completed the placement of USD 400 million

of new five-year senior unsecured bonds with at a coupon rate of 7.875 percent,

lowering DNO's average interest rate on its debt while extending the maturity

profile.

A videoconference call with executive management will follow today at 15:00

(CET). Please visit www.dno.no to access the call.

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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.