DNO ASA

Earnings Release • May 15, 2025

DNO Reports Solid First Quarter Results; Prepares Deeper Dive into Norwegian Waters

DNO Reports Solid First Quarter Results; Prepares Deeper Dive into Norwegian Waters

Oslo, 15 May 2025 - DNO ASA, the Norwegian oil and gas operator, today reported

first quarter 2025 operating profit of USD 28 million on the back of USD 188

million in revenues, both showing a quarter-on-quarter increase.

In a quarter marked by the announcement of its transformative USD 1.6 billion

acquisition of Norway's Sval Energi Group AS, DNO continued to deliver strong

operational performance. Net production rose eight percent to 84,200 barrels of

oil equivalent per day (boepd), to which Kurdistan contributed 61,600 boepd,

North Sea 19,300 boepd and West Africa 3,400 boepd.

In the flagship Kurdistan Tawke license (DNO 75 percent and operator),

production increased 11 percent quarter-on-quarter. Continuing strict capital

discipline since the closure of the Iraq-Türkiye export pipeline, the Company

stabilized, even raised, production from existing wells through rigless

interventions. Output from similar reservoirs typically decline 15-20 percent

per year.

DNO's share of oil production was sold at its Fish Khabur terminal to local

buyers at USD 35 per barrel with payments made in advance. Tawke license sales

averaged USD 20 million net to DNO per month, generating around USD 10 million

of free cash flow.

"In Kurdistan we are doing a remarkable job keeping up production with minimal

investment," said DNO Executive Chairman Bijan Mossavar-Rahmani. "If a Norwegian

company can accomplish this in the Middle East, we should replicate such

efficiencies on our home surf whether we operate the permits or not", he

observed. "As we prepare to close the Sval acquisition around midyear," Mr.

Mossavar-Rahmani added, "DNO will pivot hard to the Anglo-Saxon culture of the

early years of the Norwegian oil industry: faster, cheaper, better."

The Company kept up its successful exploration pace offshore Norway with two

discoveries in the last quarter, Kjøttkake (40 percent and operator) and Mistral

(10 percent), together adding recoverable resources of 26 million barrels of oil

equivalent (MMboe) net to the Company.

When the Sval acquisition is closed, DNO's North Sea proven and probable (2P)

reserves will quadruple to 189 MMboe and 2C resources climb to 246 MMboe from

144 MMboe, all on a yearend 2024 basis. North Sea production also quadruples to

80,000 boepd. The acquisition turns the North Sea into the biggest contributor

to DNO's net production with some 60 percent of the total and DNO will rank in

top ten among producers in Norway.

Following the Sval announcement in early March, the Company completed a USD 600

million bond placement a week later, DNO's 20th successful bond issue in 24

years.

On the back of the bond issue, DNO exited the quarter with cash deposits of USD

1,473 million. However, deposits were reduced following the end of the quarter

by the early redemption of the DNO04 bond (outstanding amount of USD 350

million) in April.

Given the continuing operational performance and strength of the balance sheet,

the Board of Directors has authorized a dividend payment of NOK 0.3125 per share

payable in June, representing NOK 1.25 per share on an annualized basis.

A videoconference call with executive management is scheduled today at 14:00

(CET). To access the call, please visit www.dno.no.

Key figures

Q1 2025 Q4 2024 Full-Year 2024

Gross operated production (boepd) 90,945 80,765 80,280

Net production (boepd) 84,232 77,646 77,269

Revenues (USD million) 188 177 667

Operating profit/-loss (USD million) 28 -82 6

Net profit/-loss (USD million) -4 -98 -27

Free cash flow (USD million) -19 -5 59

Net cash/-debt (USD million) 43 99 99

-

For further information, please contact:

Media: media@dno.no

Investors: investor.relations@dno.no

-

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 and Yemen. More information is available at

www.dno.no

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.