DNO ASA — Share Issue/Capital Change 2015

Mar 27, 2015

DNO ASA: Initiation of Repair Offering Canceled

DNO ASA: Initiation of Repair Offering Canceled

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN

AUSTRALIA, CANADA, THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S

REPUBLIC OF CHINA, JAPAN, SOUTH AFRICA OR THE UNITED STATES, OR ANY OTHER

JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

Oslo, 27 March 2015 - DNO ASA, the Norwegian oil and gas operator, announced

today that the Company has decided not to initiate a repair offering following

the successful completion of a NOK 975 million offering of new shares and

treasury shares on 10 March 2015.

Since the completion of the offering, 137.29 million DNO shares have traded on

the Oslo Stock Exchange, with an average daily trading volume of 10.56 million

shares, and at closing prices ranging from NOK 11.20 to NOK 12.81. Shareholders

therefore have had an extended period to neutralize the dilution effect of the

offering by purchasing DNO shares in the open market at a price below the

subscription price of NOK 13.25 per share.

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For further information, please contact:

Media: media@dno.no

Investors: investor.relations@dno.no

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IMPORTANT NOTICE:

This announcement is not and does not form a part of any offer for sale of

securities.

This notice is not for distribution to United States news services or for

dissemination in the United States, Canada, Japan, the Hong Kong Special

Administrative Region of the People's Republic of China, South Africa or

Australia or elsewhere where such dissemination would be unlawful or would

require registration or other measures.

The distribution of this announcement and other information in connection with

the Offering and the Repair Offering may be restricted by law in certain

jurisdictions. Persons into whose possession this announcement or such other

information should come are required to inform themselves about and to observe

any such restrictions.

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DNO ASA is an Oslo-listed, Middle East and North Africa focused oil and gas

company holding stakes in 20 blocks in various stages of exploration,

development and production both onshore and offshore in the Kurdistan Region of

Iraq, the Republic of Yemen, the Sultanate of Oman, the United Arab Emirates,

the Tunisian Republic and Somaliland.

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This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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