DNO ASA — Earnings Release 2023

May 11, 2023

DNO Reports First Quarter 2023 Results, Scales Back Kurdistan Spend

DNO Reports First Quarter 2023 Results, Scales Back Kurdistan Spend

Oslo, 11 May 2023 - DNO ASA, the Norwegian oil and gas operator, today reported

revenues of USD 269 million and operating profit of USD 155 million in the first

quarter of 2023. While the first quarter 2023 figures were solid with net profit

doubling from the previous quarter to USD 87 million, the quarter was also

marked by the shutdown of oil production in the Kurdistan region of Iraq for

export through Turkey to international markets commencing 25 March 2023.

Net production across DNO's portfolio in the quarter averaged 89,400 barrels of

oil equivalent per day (boepd), of which Kurdistan contributed 70,900 barrels of

oil per day (bopd), North Sea 14,800 boepd and West Africa 3,700 boepd. Oil not

produced during the Kurdistan shutdown, as well as oil placed in storage,

represent deferred volumes that will eventually be recovered and monetized.

Given the uncertain timing of export resumption and, importantly, of payments by

the Kurdistan Regional Government for previous oil sales, DNO has scaled back

spend in Kurdistan, including drilling. The number of active rigs at the

operated flagship Tawke license will drop from four at the start of 2023 to none

in the second half of the year following completion of previously planned

activities. With these cuts, 2023 operational spend in Kurdistan has become

heavily frontloaded, with 40 percent of the current full-year budget already

spent in the first quarter.

Until export restarts and regularity of payment for past and ongoing oil sales

is established, DNO cannot provide any projection of full-year Kurdistan

production.

In the North Sea, DNO's exploration success continued with the Røver Sør (DNO

20 percent) and Heisenberg (DNO 49 percent) discoveries announced in the

quarter. These are the Company's fourth and fifth consecutive discoveries in the

Troll-Gjøa area, a current exploration hotspot given a high hit rate of medium-

sized discoveries that are candidates for tieback to existing nearby

infrastructure. The five discoveries are estimated to contain recoverable

resources totaling 50 million barrels of oil equivalent net to DNO.

Seven wells remain to be drilled or completed as part of this year's North Sea

exploration program, all but two in the Troll-Gjøa area. The first of the

exploration wells, Carmen (DNO 30 percent) is currently drilling, and will be

followed by Eggen (DNO 20 percent), Litago (DNO 20 percent), Norma (DNO 40

percent), Bergknapp (DNO 30 percent, appraisal well), Ofelia (DNO 10 percent,

appraisal well) and Cuvette (DNO 20 percent).

In 2023, North Sea net production is projected to average 12,000-13,000 boepd,

while West Africa is projected to deliver an additional 3,500 boepd net to DNO.

Total 2023 operational spend across the Company is currently projected at USD

590 million, of which the largest portion represents North Sea activities.

During the first quarter of 2023, distributions were made to shareholders

through share buybacks of USD 51 million and dividends of USD 25 million.

Notwithstanding, the Company exited the quarter with gross cash deposits of USD

911 million and net cash of USD 344 million.

Early next month, another quarterly dividend payment of NOK 0.25 per share will

be made to shareholders.

A videoconference call with executive management will follow today at 13:00

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

Key figures

Q1 2023 Q4 2022 Full-Year 2022

Gross operated production (boepd) 94,720 107,822 107,637

Net production (boepd) 89,399 99,257 97,310

Revenues (USD million) 269 338 1,377

Operating profit/-loss (USD million) 155 -76 431

Net profit/-loss (USD million) 87 43 385

Free cash flow (USD million) 35 150 619

Net cash/-debt (USD million) 344 388 388

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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 active in the Middle East, the North

Sea and West Africa. 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, Côte d'Ivoire, Netherlands and Yemen.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.