DNO ASA — Investor Presentation 2017

May 4, 2017

Interim Presentation First Quarter 2017

Corporate overview and operational highlights

Corporate overview – Q1 2017 and year-to-date

• Kicked off year with strong revenues, positive cash flow and net profit
• Outstanding balance for 2016 Tawke oil exports received in Q1 2017
• With regular payments, stepped up Kurdistan drilling program
• Strengthened balance sheet, exiting the quarter with cash balance of USD 363 million
• In April, exported 3,000 barrels of oil per day (bopd) from Peshkabir field during extended well testing program
• Also in April, received USD 32 million net to DNO for January 2017 exports, including USD 5 million toward booked local sales receivable
• In May, announced fast-track reentry into Norway with acquisition of privately-held Origo Exploration Holding AS

Q1 2017 operational highlights

• Operated production in Q1 2017 averaged 115,900 barrels of oil equivalent per day (boepd), on par with Q4 2016 production (97,000 boepd in Q1 2016)
• Of which Kurdistan represented 111,000 bopd and Oman 4,900 boepd
• Company Working Interest (CWI) production averaged 71,300 boepd
• Initiated drilling of three wells during Q1 2017, two at the Tawke field and one at Oman offshore Block 8
• Relinquished two licenses in the United Arab Emirates and one in Oman, completing previously announced portfolio rationalization

Q1 2017 financial highlights

• Q1 2017 revenues of USD 77 million, up from USD 42 million during previous quarter (USD 50 million in Q1 2016)
• Represented highest quarterly revenues since Q4 2014
• Received four Tawke export payments totaling USD 127 million gross, of which USD 89 million net to DNO, including USD 17 million toward booked local sales receivable
• Returned to quarterly profitability, with net profit of USD 15 million
• Purchased 3.5 million own shares at average price of NOK 6.97
• Strong operational cash flow of USD 138 million

Stepped up Tawke drilling in 2017

• Mobilizing third rig to drill four new Cretaceous production wells at Tawke as part of expanded drilling program
• Revised 2017 Tawke drilling program includes six Cretaceous wells and two shallow Jeribe wells
• Initiated Tawke-35 Cretaceous well production in late April
• To be followed in Q2 2017 by Tawke-38 (Jeribe), Tawke-39 (Jeribe) and Tawke-42 (Cretaceous)
• Commissioned 400,000 barrel third-party storage facility to buffer production during export pipeline disruptions and avoid field shutdowns

Other operations

• Following extended testing of Jurassic horizon of Peshkabir-2 well, preparing same in shallower Cretaceous discovery
• During two-week Jurassic test in April, around 3,000 bopd trucked to DNO's facility at Fish Khabur and exported
• Plan to spud new Peshkabir-3 appraisal/production well in June
• Finalizing fast-track development plan involving early production facility
• In Oman offshore Block 8, West Bukha-5B oil well drilled to planned depth of 4,500 meters, completed and currently undergoing unloading and testing
• Also offshore Oman Block 8, reinstatement of Bukha-1 gas well scheduled for August

2017 drilling schedule

Financial review

DNO financial results – key figures

Operating profit USD million

Financial summary

USD million	Q1 2017	Q4 2016	Q1 2016	2016
Revenue	76.7	41.7	49.6	201.8
Cost of goods sold	-30.0	-36.9	-30.7	-128.7
Gross profit	46.7	4.8	18.9	73.1
Expensed exploration	-1.6	-1.3	-3.5	-20.3
Administrative expenses	-5.0	-9.4	-6.8	-31.0
Other operating income/expenses	-1.7	11.5	-0.6	13.5
Impairment of oil and gas assets	-10.6	-33.2	0.0	-29.2
Profit/loss from operating activities	27.8	-27.6	8.0	6.1
Net finance	-12.1	-4.6	-12.2	-39.4
Profit/loss before income tax	15.7	-32.2	-4.3	-33.3
Income tax expense	-1.0	1.0	-0.7	-2.1
Net profit/loss	14.7	-31.2	-4.9	-35.3

Capital structure

44 43 Equity ratio Percent

Important notice

This presentation (the "Presentation") has been prepared and delivered by DNO ASA ("DNO" or the "Company"). Copyright of all published material including photographs, drawings and images in this document remains vested in DNO and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

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.

Although the Company believes that its expectations and the Presentation are based upon reasonable assumptions, 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 forwardlooking statements or to conform these forward-looking statements to our actual results.

Any investment involves risks, and several factors could cause the actual results, performance or achievements of the Company as described herein to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this Presentation, including, among others, risks or uncertainties associated with the Company's business, segments, development, growth management, financing, market acceptance and relations with customers. More generally an investment will involve risks related to general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of such risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this Presentation.

DNO is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither DNO nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

The Presentation speaks and reflects prevailing conditions and views as of 4 May 2017. It may be subject to corrections and change at any time without notice except as required by law. The delivery of this Presentation - or any further discussions of the Company with any recipient - shall not, under any circumstances, 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.