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2017-02-09

DNO ASA: DNO ASA Reports 2016 Interim Results and Annual Statement of Reserves; Announces Stepped Up Drilling Campaign in Kurdistan and Oman

Oslo, 9 February 2017 - DNO ASA, the Norwegian oil and gas operator, today
announced a stepped up drilling campaign in the Kurdistan region of Iraq and
the Sultanate of Oman on the back of 2016 operating profits and improved
payments for exports from its flagship Tawke field in Kurdistan. The Company
also released its annual reserves report which showed an increase in combined
proven and probable reserves (2P) and contingent resources (2C) following the
new oil discovery at the Peshkabir field in Kurdistan.

DNO reported interim 2016 operating profits of USD 6 million, reversing an
operating loss of USD 174 million in 2015. Following two years of cost
cutting and asset rationalization, the Company is restarting investments to
replenish its oil and gas reserves and restore production across its
portfolio.

Planned 2017 capital investments are estimated at USD 100 million, and include
four new production wells at Tawke. Elsewhere in Kurdistan, the Company plans
to drill a third well at Peshkabir and an appraisal/production well at the
Benenan field in the Erbil license. In Oman, two wells will be brought back
onstream at Block 8 offshore with plans to nearly double output at the West
Bukha and Bukha fields.

The Company is considering three additional wells at Tawke to raise production
above current levels of around 115,000 barrels of oil per day (bopd)
contingent on regular and predictable export payments from the Kurdistan
Regional Government.

During 2016, DNO received ten payments totaling USD 210 million net to the
Company for Tawke exports and outstanding receivables. Three additional
payments totaling USD 59 million net to DNO have been received to date in the
first quarter.

"These payments create momentum as we move into 2017," said DNO's Executive
Chairman Bijan Mossavar-Rahmani.

Early production from Peshkabir and transport of oil to the Company's
gathering, processing and export facilities at Fish Khabur 12 kilometers away
is under assessment.

"The Peshkabir field positions us for production and reserves growth in our
Kurdistan portfolio," said Mr. Mossavar-Rahmani, indicating that the
Cretaceous discovery added 47.9 million barrels of oil equivalent (MMboe) of
gross 2C resources.

As of 31 December 2016, DNO's Company Working Interest (CWI) 2P reserves and
2C resources were estimated at 529.6 MMboe, up from 523.1 MMboe at year-end
2015. CWI 2P reserves were estimated at 368.3 MMboe, down from 391.5 MMboe at
year-end 2015 after adjusting for CWI production of 25.3 MMboe during the
year and a positive technical revision of 2.1 MMboe. CWI 2C resources were
estimated at 161.3 MMboe, up from 131.6 MMboe at year-end 2015.

At Tawke, 2P reserves and 2C resources stood at 604.0 million barrels (MMbbls)
at year-end 2016, down from 643.2 MMbbls at year-end 2015. Gross proven (1P)
reserves stood at 347.7 MMbbls, down from 387.0 MMbbls at year-end 2015.
Gross 2P reserves stood at 503.8 MMbbls, down from 543.0 MMbbls at year-end
2015. The reduction in each category reflected total production of 39.3
MMbbls from the field during the year.

International petroleum consultants DeGolyer and MacNaughton carried out the
annual independent assessment of the Tawke field. DNO internally evaluated
the remaining assets.

--

DNO ASA presents its 2016 interim results in Oslo at 10:00 CET today. A live
webcast of the presentation and the 2016 Annual Statement of Reserves will be
available on the Company website (www.dno.no).

For further information, please contact:
Media:media@dno.no

Investors:investor.relations@dno.no

Tel: +47 911 57 197

--

DNO ASA is a Norwegian oil and gas operator focused on the Middle East and
North 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,
Yemen, Oman, Tunisia and Somaliland.

--

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

2016 Interim Results Presentation
http://hugin.info/36/R/2077136/781338.pdf
2016 Interim Results Report
http://hugin.info/36/R/2077136/781339.pdf
2016 Annual Statement of Reserves
http://hugin.info/36/R/2077136/781340.pdf

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: DNO ASA via Globenewswire

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