DNO Reports Strong First Quarter Results, Steps Up North Sea Activity

Oslo, 8 May 2024 – DNO ASA, the Norwegian oil and gas operator, today reported first quarter 2024 operating profit of USD 61 million, 61 percent higher than the previous quarter, on the back of revenues totaling USD 183 million. Free cash flow at USD 44 million was up 31 percent from the fourth quarter of 2023.

Net production climbed 14 percent quarter-on-quarter and averaged 74,800 barrels of oil equivalent per day (boepd) in the first three months of 2024, to which the Kurdistan region of Iraq contributed 57,200 boepd, the North Sea 14,200 boepd and West Africa 3,300 boepd.

Production from the flagship Tawke license (DNO 75 percent and operator) in Kurdistan has now largely been restored after the March 2023 Iraq-Türkiye Pipeline shutdown as the Company continues to use road tankers to sell its oil to local trading companies on a cash and carry basis with payments deposited into Company accounts in international banks. DNO recently negotiated higher wellhead prices for such sales, raising them to the upper USD 30s per barrel.

The Company is also stepping up investments in its Tawke and Peshkabir fields, both within Tawke license, by restarting completion of three development wells that were discontinued last year as a cost saving measure following the pipeline shutdown. In addition, DNO has deployed its two own intervention rigs to conduct routine workovers, including repairing or replacing pumps, zone stimulations and cleaning out asphaltenes among low-cost, quick turnaround production enhancement measures.

On the Baeshiqa license (64 percent and operator), DNO is continuing to drill the B-3 well which has reached 2,500 meters of a target depth of 3,765 meters.

In the North Sea, which has rapidly developed into a second core area for DNO, the Company maintains a high activity level, pushing for speedier commercialization of its recent string of discoveries. During the quarter, the Bestla development (DNO 39 percent) was approved by partners with startup in H1 2027. Together with two other ongoing developments, namely Andvare (32 percent) and Berling (30 percent), Bestla will support a significant North Sea production increase by late in the decade.