DNO ASA — M&A Activity 2018

Dec 5, 2018

DNO Statement on Faroe/Equinor Norway Asset Swap

DNO Statement on Faroe/Equinor Norway Asset Swap

DNO notes the announcement made by Faroe Petroleum today 5(th) December 2018,

regarding a Norwegian Asset Swap with Equinor.

"This is a significant deal for Faroe, and we need to understand it before

making a judgement. While Faroe has asserted this is not designed to stop the

DNO offer, we need to ask if this is good value for a company seeking growth: to

swap out of its high quality, large scale, core growth hub, Njord, operated by

the national oil company of Norway, Equinor, and to take on instead mature and

declining production assets - in a deal with Equinor itself. That is the test

this deal needs to satisfy."

A copy of this document will be available, subject to certain restrictions

relating to persons resident in restricted jurisdictions, for inspection on

DNO's website https://www.dno.no/en/investor-

relations/offer_announcement_26November/