DNO ASA — Earnings Release 2020

Feb 11, 2021

DNO Reports 2020 Results; Guides on 2021 Activity

DNO Reports 2020 Results; Guides on 2021 Activity

Oslo, 11 February 2021 - DNO ASA, the Norwegian oil and gas operator, today

reported interim 2020 revenues of USD 615 million, down a third from a year

earlier in the wake of weak oil prices triggered by the pandemic and global

economic contraction. Net production totaled 95,100 barrels of oil equivalent

per day (boepd), down nine percent, as the Company cut spending to preserve

cash.

For the full year, DNO reported a net loss of USD 286 million driven by the

lower revenues and pre-tax asset impairments of USD 276 million, most of which

were reported in the third quarter.

With solid cash flow from operations of USD 236 million and North Sea tax

refunds of another USD 236 million, DNO exited 2020 with a cash balance of USD

477 million, essentially unchanged from the start of the year, following

repayment of USD 161 million in bond debt.

The Company drilled six exploration wells last year leading to three likely

commercial discoveries, including Røver Nord and Bergknapp in Norway and Zartik

in Kurdistan's Baeshiqa license. The discoveries will be considered for fast-

track development and tie-in to existing offshore or onshore infrastructure.

DNO will drill two potentially high impact exploration wells this year, notably

the much anticipated Edinburgh prospect that straddles the Norway-United Kingdom

border in which the Company holds a 45 percent stake and the Gomez prospect

offshore Norway in which the Company holds an 85 percent stake.

The total 2021 well count, including development wells, will increase to 27 from

17 last year.

Temporary Norwegian petroleum tax incentives are driving other stepped-up

investments. The Company is proceeding to concept selection for the operated

Brasse field, accelerating infill drilling at Ula, Tambar and Brage fields in

2021 and evaluating the Iris/Hades, Røver Nord, Alve Gjøk, Orion/Syrah and Trym

South discoveries for project sanction in 2022.

DNO projects operational spend of USD 700 million this year, up from USD 511

million in 2020.

The Company achieved a net 2P reserve replacement ratio of 64 percent in 2020,

notwithstanding limited activity, ending the year with 332 million barrels of

oil equivalent (mmboe) of proven and probable reserves, down 13 mmboe from

yearend 2019, according to preliminary figures.

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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.