DNO ASA — Earnings Release 2021

May 6, 2021

DNO Returns to Profitability, Ups Tawke License Production Guidance

DNO Returns to Profitability, Ups Tawke License Production Guidance

Oslo, 6 May 2021 - DNO ASA, the Norwegian oil and gas operator, today reported

operating profit of USD 66 million in the first quarter of 2021, following four

quarters of losses triggered by market perturbations from the global Covid

pandemic. The turnaround was driven by solid production, cost optimization,

higher oil prices and regularization of payments from Kurdistan.

The Company stepped up spend early in the year with drilling of new wells and

workovers of existing ones in its flagship Tawke license to sustain gross

operated production from the Tawke and Peshkabir fields at 112,000 barrels of

oil per day (bopd) in the first quarter, up from 110,000 bopd in the previous

quarter. Net production attributable to the Company's interest across the

portfolio, including from DNO's North Sea oil and gas assets, stood just shy of

100,000 barrels of oil equivalent per day (boepd).

In another positive development during the quarter, Kurdistan initiated

principal payments towards Tawke license 2019 and 2020 withheld entitlement and

override amounts, reducing the outstanding balance due DNO from USD 259 million

to USD 239 million. If oil prices and license production remain around current

levels through 2021, some two-thirds of the remaining arrears will be recovered

by the end of the year.

"DNO, like our peers, is positioned for strong cash flow in 2021 with the

firming up of oil demand and prices," said DNO's Executive Chairman Bijan

Mossavar-Rahmani. "Barring another pandemic derailing of global economic

activity, we will repair our balance sheet, regroup in person and then fly like

a bat out of hell in pursuit of opportunity," he added.

DNO exited the first quarter with a cash balance of USD 477 million and as a

first step towards shoring up its balance sheet, the Company yesterday announced

it would retire USD 100 million in bond debt on 1 June 2021 by exercising a call

option on the USD 400 million DNO02 bond.

The Company has budgeted full year operational spend of USD 700 million,

including 12 Tawke license wells of which nine in Tawke and three in Peshkabir.

Gross operated Tawke license full-year 2021 production guidance has accordingly

been increased to 110,000 bopd. DNO operates and has a 75 percent stake in the

Tawke license, with partner Genel Energy plc holding the balance.

DNO will participate in an active drilling program in the North Sea with five

exploration and eight development wells during the balance of 2021.

-

For further information, please contact:

Media: media@dno.no

Investors: investor.relations@dno.no

-

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.