DNO : Half-Year 2021 Interim Presentation

Half-Year 2021 Interim Results

Operational and financial highlights

Cover: Looking to the future as DNO ASA celebrates its 50th Anniversary as Norway's oldest, continuously operating oil and gas company

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Q2 2021 operational highlights

• Gross operated Tawke license production including the Tawke and Peshkabir fields averaged 110,300 barrels of oil per day (bopd) in Q2 2021 (112,000 bopd in Q1 2021) of which 82,700 bopd net to DNO's interest (84,000 bopd Q1 2021)
• North Sea assets contributed another 9,900 barrels of oil equivalent per day (boepd), down from 15,200 boepd in Q1 2021 due to planned maintenance and infill drilling
• Totaling net DNO production of 92,700 boepd in Q2 2021
• Tawke license gross operated production guidance for 2021 remains 110,000 bopd
• North Sea production to recover with 2021 net production guidance of 13,000 boepd
• DNO had 91 licenses across its portfolio at end Q2 2021 (25 operated), of which two in Kurdistan, 74 in Norway, 11 in the United Kingdom, two in the Netherlands, one in Ireland and one in Yemen

Net production

thousand boepd

105.0

103.0

97.9 99.2

94.392.7

Q1	Q2	Q3	Q4	Q1	Q2
2020	2020	2020	2020	2021	2021
Kurdistan	North Sea

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Q2 2021 financial highlights

• Revenues totaled USD 184 million in Q2 2021 (USD 170 million in Q1 2021) as higher oil and gas prices more than compensated for lower North Sea volumes
• Operating profit of USD 61 million in Q2 2021 (USD 66 million in Q1 2021)
• Reduced bond debt to USD 700 million following redemption of USD 100 million in Q2 2021
• Received USD 158.6 million from Kurdistan in Q2 2021 (entitlement USD 113.5 million, override USD 15.3 million and USD 29.8 million towards arrears built up from non- payment of certain invoices in 2019 and 2020)
• Exited Q2 2021 with cash balance of USD 454 million
• Continued to strengthen balance sheet with end Q2 2021 net interest bearing debt of USD 396 million, lowest since Q4 2018
• Following end of Q2 2021, received Kurdistan payments totaling USD 56.9 million

Operating profit

USD million

								66	61
-12					-14
		-81
				-208
	Q1		Q2		Q3		Q4		Q1		Q2
2020	2020	2020	2020	2021	2021

Net interest-bearing debt

USD million

559 537 586

473 473

396

Q1	Q2	Q3	Q4	Q1	Q2
2020	2020	2020	2020	2021	2021

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Kurdistan operations

• Q2 2021 Tawke license gross operated production averaged 110,300 bopd, of which Peshkabir field 63,000 bopd (61,400 in Q1 2021) and Tawke field 47,300 bopd (50,600 in Q1 2021)
• Five new wells scheduled at Peshkabir field in 2021 in addition to workovers and interventions in existing wells
• Delays in government approvals of work programs and budgets triggering deferrals in DNO Kurdistan spend of USD 50 million to 2022
• Meanwhile natural Tawke field decline partially offset by pressure support from daily reinjection of over 20 million cubic feet of gas from Peshkabir field in addition to workovers and interventions

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Turkey	Iran
	Tawke field

Peshkabir field

Tawke license

Kurdistan

region of Iraq

Iraq

Baeshiqa license

Map legend

DNO licenses