Q3 2021 Interim Results Presentation

Q3 2021 Interim Results

A low cost, low carbon

E&P company

• Proudly celebrating its Golden Anniversary, DNO remains a growth-oriented E&P company focused on the Middle East and the North Sea
• Diverse portfolio with lifting costs averaging only USD 5 per barrel
• Industry beating low CO2 intensity of
  10 kilograms per operated barrel of oil produced

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Operational and financial highlights

Cover photo: On board the Borgland Dolphin drilling rig during DNO operations offshore Norway

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Q3 2021 operational highlights

• Gross operated Tawke license production including the Tawke and Peshkabir fields averaged 105,200 barrels of oil per day (bopd) in Q3 2021 (110,300 bopd in Q2 2021) of which 78,900 bopd net to DNO's interest (82,700 bopd Q2 2021)
• North Sea contributed another 13,100 barrels of oil equivalent per day (boepd), up from 9,900 boepd in Q2 2021 as production resumed at Marulk and Alve fields
• Totaling net DNO production of 92,000 boepd in Q3 2021 (92,700 boepd in Q2 2021)
• Tawke license 2021 gross operated production guidance unchanged at around 110,000 bopd
• North Sea 2021 net production guidance unchanged at around 13,000 boepd
• DNO had 91 licenses across its portfolio at end Q3 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

103.0

97.9 99.2

92.7 92.0

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

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Q3 2021 financial highlights

• Revenues totaled USD 253 million in Q3 2021, up 38 percent quarter-on-quarter driven by strengthening oil and gas prices and higher North Sea sales
• Kurdistan revenues of USD 149 million (USD 141 million in Q2 2021) and North Sea revenues of USD 104 million (USD 43 million in Q2 2021)
• Operating profit of USD 65 million in Q3 2021 (USD 61 million in Q2 2021)
• New USD 400 million five-year bonds with coupon rate of 7.875 percent, lowering average debt interest rate and extending maturity
• Received USD 120 million from Kurdistan in Q3 2021 (entitlement USD 88 million, override USD 11 million and USD 20 million towards arrears built up from non- payment of certain invoices in 2019 and 2020)
• At end Q3 2021, outstanding Kurdistan arrears had dropped to USD 203 million, down from the original USD 259 million, excluding any interest

Revenues

USD million

253

163 174 170 184

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

Operating profit

USD million

66 61 65

-14

-208
Q3	Q4	Q1	Q2	Q3
2020	2020	2021	2021	2021

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