DNO Increases Tawke Stake; Announces Settlement of Kurdistan Receivables

Oslo, 24 August 2017 -- DNO ASA, the Norwegian oil and gas operator, has been
assigned the 20 percent interest in the Tawke license held by the Kurdistan
Regional Government as part of a landmark settlement of outstanding receivables
owed to the Company for past crude oil deliveries. Following the settlement, DNO
holds a 75 percent operated stake in the license containing the Tawke and
Peshkabir fields with combined proven and probable reserves in excess of 500
million barrels and production in excess of 100,000 barrels of oil per day.

In addition to the 20 percent interest, the Company will receive three percent
of gross license revenues each month from the Government over a five-year
period. The settlement is effective as of 1 August 2017.

DNO has settled its claims for all outstanding Tawke license receivables from
the Government and the Government has exercised its Tawke license audit rights
to its satisfaction for the period up to the effective date and has no
adjustment claims. The Government has also discharged DNO from certain payment
obligations including production bonuses, license fees and a USD 150 million
water purification project that is no longer required by the Government.

The removal of these liabilities and the transfer to DNO of the 20 percent
interest and the right to the three percent revenue stream will bolster the
Company's balance sheet and future cash flow.

"We are very pleased with the Government's initiative to settle receivables and
normalize export payments to the operators," said Bijan Mossavar-Rahmani, DNO's
Executive Chairman. "This sends a strong positive signal to investors and helps
restore confidence in Kurdistan's oil sector," he added.

DNO's June-July 2017 outstanding invoices for Kurdistan exports will continue to
be paid under the payment arrangement in place since January 2016.

--

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-North
Africa region and the North Sea. 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, Norway, Oman, Somaliland, Tunisia, Yemen and the United Kingdom.

--

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