DNO ASA — Investor Presentation 2014

May 8, 2014

Interim Presentation 2014 First Quarter

Q1 2013 and year-to-date highlights

• Q1 company working interest (CWI) production of 45,744 boepd (78,917 boepd gross)
• Q1 CWI sales volumes of 37,909 boepd (66,279 boepd gross)
• Q1 operating revenue of USD 113 million and operating cash flow of USD 89 million
• Notwithstanding quarterly investments of USD 85 million, maintained strong financial position with free cash balance of USD 242 million at end Q1
• In addition to cash, held USD 95 million in financial assets, including a 4.2 percent stake in RAK Petroleum PCL, with balance held in DNO treasury shares
• DNO is the fastest growing producer in Kurdistan, capitalizing on early mover advantage
• Drilling and completing back-to-back, high deliverability horizontal wells at Tawke
• Initiating first sales of oil from the Benenan field and first flows of gas from the Summail field
• DNO is number one in Kurdistan in proved and probable reserves of oil and gas
• Tawke field is third largest onshore oil discovery in the world in past ten years

CWI production

CWI 2P reserves

Interim Presentation 2014 – First Quarter

• CWI 2P reserves up 389 MMboe since 2009 (compound annual growth rate of 38 percent)
• 2013 reserve replacement ratio of 152 percent
• New reserves booked at Summail, Peshkabir and Benenan fields
• First Tawke horizontal wells too late in year to incorporate data; Tawke reservoir model update in 2014
• Average finding and development cost of USD 2.30/boe since end 2009
• DNO is the lowest cost operator in Kurdistan

Progress at Tawke

• Set new daily field production record of 129,000 barrels in March
• Four horizontal wells currently on production
• Preparing to test two newly completed horizontal wells
• Three more horizontal wells to be drilled in 2014
• Together these nine horizontal wells will span full length of Tawke field by end 2014 (dimensions 35 km by 5 km)
• On track to raise facilities capacity to 200,000 bopd at end 2014
• Installing new 24 inch pipeline to provide transportation system redundancy and increase export capacity by another 300,000 bopd

Year-end facilities capacity

Progress at Dohuk and Erbil licenses

1 Dohuk license

• Pressuring up pipelines to initiate sales from Summail-1 well to Dohuk Power Plant at up to 50 MMcfd
• Summail-3 well completed; Summail-2 well drilling ahead
• Deliveries to ramp up to 100-120 MMcfd with three wells and addition of new processing capacity
• Project enhances DNO's production and revenue mix in Kurdistan and helps displace diesel and lower local power generation costs

2 Erbil license

• Prioritizing fast track development of Benenan and Bastora heavy oil fields
• Initiated sales from Benenan-3 well production of up to 1,500 bopd from one Najmeh zone with several other zones to be tested
• Incorporate Benenan-4 well into a four well early production program

Production and development activity

• Sixteen production and development wells in some stage of drilling this year in three countries
• There has not been a day since 1998 that DNO has not been drilling somewhere across its portfolio
• This reflects DNO's DNA notwithstanding evolution and change, one thing continues we like to drill

Firm and contingent program			2014				2015
	Well name	DNO interest	Q1	Q2	Q3	Q4	Q1
	Tawke-21	55.00%
Kurdistan	Tawke-22	55.00%
	Tawke-24	55.00%
	Tawke-26	55.00%
	Tawke-25	55.00%
	Tawke-28	55.00%
	Tawke-27	55.00%
	Tawke Tertiary-1	55.00%
	Tawke Tertiary-2	55.00%
	Summail-3	40.00%
	Summail-2	40.00%
	Benenan-5	40.00%
Yemen	Tasour-28	38.95%
	Yaalen-4S2	40.00%
Oman	West Bukha-5 w/o	50.00%
	West Bukha-6	50.00%

Production / development well spud Well duration

Exploration and appraisal activity

• Active exploration and appraisal drilling program in 2014 and 2015
• Looking to "move the needle" again by targeting 570 MMboe of gross unrisked resources across the portfolio
• Seven exploration and appraisal wells expected to spud over the next nine months
• Peshkabir-2 most important drilling catalyst in current portfolio
• Also plan to acquire 1,500 km of 2D seismic and 1,410 km² of 3D seismic in 2014

Firm and contingent program			2014			2015
	Well name	DNO interest	Gross unrisked MMboe	Q2	Q3	Q4	Q1	Q2
Kurdistan	Peshkabir-2	55.00%	225
	Tawke-29 (Jurassic)	55.00%	150
Yemen	Salsala-2	38.95%	7
	Gabdain-3	18.00%	55
	Nabrajah-18/S2	56.67%	2
Oman	Block 36	75.00%	100
Tunisia	Jawhara-3	87.50%	30
Total			570

Exploration well Appraisal well

Progress across the portfolio

• Oman Block 8 production uptick expected following completion of West Bukha workover program
• Slide in Yemen production reflects prevailing security conditions but now beginning to ramp up field operations
• In Tunisia preparing to drill first well at Sfax offshore permit
• Farmed down RAK Onshore from 100 percent to 70 percent following farm down of SL18 in Somaliland to 60 percent

Interim Presentation 2014 Financial Summary

Q1 2014 financial results – key figures

• Change in presentation currency from NOK to USD effective from Q1 2014
• Q1 financial results do not include contribution of value from Tawke oil in storage at Ceyhan
• Investment program across portfolio continues to be funded by operational cash flow

Q1 2014 revenue and gross profit distribution

Increasing investments in line with plan

• increased to USD 85 million in Q1
• In line with 2014 budget and guidance
• New Summail gas development project accounted for USD 19 million in Q1
• Start of activity in Tunisia
• Retain discretion over investment program

Capex and capitalized exploration

Robust capital structure

• Maintained strong financial position net cash positive versus debt
• Capacity to execute work program and capitalize on new opportunities

63

95

* Includes value of treasury shares at market price and RAK Petroleum PCL shares at fair value

Interim Presentation 2014 – First Quarter

Financial results – summary

USD million	Q1 2014	Q4 2013	Q1 2013	FY2013	FY2012
Sales	112.8	133.6	103.3	503.0	524.5
Cost of goods sold	-71.1	-48.4	-49.9	-208.3	-208.4
Expensed exploration	-5.3	-3.9	-1.9	-10.3	-13.4
Admin/other	-6.7	-187.0	-4.4	-216.5	-32.7
Profit/(loss) from operating activities	29.7	-105.7	47.1	67.9	270.0
Net finance	-3.5	-1.2	-3.2	-9.7	-22.0
Profit/(loss) before income tax	26.2	-106.9	43.9	58.2	248.0
Income tax expense	-2.5	8.8	-13.8	-31.3	-49.9
Net profit/(loss)	23.7	-98.1	30.1	27.0	198.1

Q1 Highlights

• Lower revenues in Kurdistan and Yemen
• Increase in COGS mainly from higher DD&A

Q1 cash flow movements

• Cash generated from operations continues to fund capital expenditures, taxes and interest

Interim Presentation 2014 First Quarter

Important notice

This presentation (the "Presentation") has been prepared and delivered by DNO International ASA ("DNO" or the "Company"). The Presentation and its contents is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person than the intended recipient. The Presentation is prepared for discussion purposes only. It does not constitute, and should not be construed as, any offer or invitation or recommendation to buy or sell any of the securities mentioned or described herein.

The Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or industry and markets in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any forward-looking statements and other information contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts based on the current expectations, estimates and projections of the Company or assumptions based on information currently available to the Company, which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Neither the Company, nor any of its subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking information and statements. are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results.

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By receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and the relevant securities and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of any relevant investments. This Presentation contains information which has been sourced from third parties believed to be reliable, but without independent verification. Neither DNO nor its advisors makes any undertaking, representation or warranty (express or implied) as to the accuracy or completeness of the information (whether written or oral and whether or not included in this Presentation) concerning the matters described herein. Neither DNO nor any of its advisors accepts any liability whatsoever as to any errors, omissions or misstatements contained herein and, accordingly, neither DNO or its advisers, nor any of their parent or subsidiary undertakings or any such person's affiliates, officers, employees, accepts any liability whatsoever arising directly or indirectly from the use of this Presentation or the information included herein.

The Presentation speaks and reflects prevailing conditions and views as of 8 May 2014. It may be subject to corrections and change at any time without notice. DNO does not intend to, and neither the delivery of this Presentation nor any further discussions of the Company with any recipient shall, under any circumstances, not create any implication that the Company assumes any obligation to update or correct the information herein, nor any implication that there has been no change in the affairs of the Company since such date.