DNO Steps Up Activity; Releases Second Quarter 2020 Results
Oslo, 30 July 2020 - DNO ASA, the Norwegian oil and gas operator, today reported
stepped up investments across its portfolio on the back of higher production and
significantly improved liquidity outlook as the Company recovers from the oil
market turmoil that upended the second quarter of 2020.

Operated production in July at the Company's flagship Tawke license in the
Kurdistan region of Iraq is up 15,000 barrels of oil per day (bopd) month-on-
month to 115,000 bopd following a well intervention campaign fast tracked in
June with the stabilization of oil prices and improved export payment terms. In
the North Sea segment, DNO projects receipt of USD 215 million in tax refunds in
the second half of the year, including USD 70 million from the recently
announced temporary changes to petroleum taxation in Norway.

"The worst of the coronavirus pandemic hit to our business is behind us and DNO
is back identifying and capturing opportunities," said Bijan Mossavar-Rahmani,
DNO's Executive Chairman. "Still, we are prepared to act quickly, as we did in
March, if a strong second wave comes," he added.

Second quarter Company Working Interest (CWI) production stood at 89,700 barrels
of oil equivalent per day (boepd) of which Kurdistan contributed 71,900 bopd and
the North Sea 17,800 boepd.

Gross operated Tawke license production averaged 102,000 bopd, including 58,100
bopd from the Tawke field and 43,900 bopd from the Peshkabir field, together
down 11 percent from the first quarter as development activity dropped off to
preserve cash at a time of historically low and uncertain oil prices.

Second quarter revenues slid to USD 72 million and operating losses climbed to
USD 81 million, both driven by weak commodity prices across the portfolio and
lower cargo liftings of produced oil in the North Sea.

At the Baeshiqa license in Kurdistan, DNO continued drilling the third
exploration well on a second structure (Zartik) some 15 kilometers southeast of
the Baeshiqa-2 discovery well. The rig has been released and testing will
commence in August in Lower Jurassic and Upper Triassic zones intersected by the
well and expected to last three months. Evaluation of the Baeshiqa-2 results is
ongoing to determine commerciality.

During the first half of 2020 DNO received a total of USD 224 million in
payments from the Kurdistan Regional Government. In addition, the Company
received a USD 23 million June entitlement payment after the end of the
reporting period. Discussions are ongoing to reach an agreement on acceptable
terms and timing of payment of arrears totaling USD 240 million due to DNO for
the November 2019-February 2020 entitlements and November 2019-June 2020
override payments. Notwithstanding the interruption of these payments and DNO's
repayment of the remaining USD 138.5 million of the DNO01 bond at maturity on
18 June 2020, the Company exited the first half of 2020 with a strong cash
balance of USD 427 million. Net debt at the end of the second quarter stood at
USD 537 million, down from USD 559 million at the end of the first quarter.

Last month, DNO commissioned the Peshkabir-to-Tawke gas reinjection project, the
first enhanced oil recovery project in Kurdistan, to unlock additional oil
volumes at Tawke while significantly reducing gas flaring and CO(2 )discharges
at Peshkabir.

Prompted by the tax changes in Norway, the Company is working with partners to
accelerate infill drilling at the Ula, Tambar and Brage producing fields,
revisit development options for the Brasse field and actively evaluate the
Iris/Hades, Fogelberg and Trym South discoveries.

DNO will remain an active explorer in the North Sea, targeting 4-6 wildcat wells
a year.