DNO Results Reflect Robust Kurdistan Production, North Sea Expansion

Oslo, 6 February 2025 – DNO ASA, the Norwegian oil and gas operator, today reported 2024 revenues of USD 667 million on the back of stellar production in the Kurdistan region of Iraq in a year marked by continuing North Sea expansion.

Cash from operations increased nearly 50 percent to USD 433 million year-on-year. Operating profit dropped to USD 6 million reflecting the Company’s decision to take non-cash impairments of USD 146 million in its accounts, part of which was previously reported.

Net production climbed 50 percent year-on-year to 77,300 barrels of oil equivalent per day (boepd), to which Kurdistan contributed 59,000 boepd, North Sea 15,200 boepd and West Africa 3,100 boepd.

At Kurdistan’s Tawke license (75 percent and operator), DNO increased gross production from the Tawke and Peshkabir fields by 70 percent year-on-year to 78,600 boepd in 2024, with oil sold at its Fish Khabur terminal as the Iraq-Türkiye export pipeline remained shut in. Sales prices averaged USD 35 per barrel with payments deposited into DNO’s international bank accounts ahead of deliveries. At these prices, Tawke license sales generate around USD 10 million per month of free cash flow to DNO.

Maintaining strict capital spending discipline, DNO drilled no new wells on the Tawke license in 2024. Notwithstanding, output was increased by bringing three previously drilled wells onstream and by workovers and interventions on more than 20 other wells across the license.

“Our Kurdistan team is doing a terrific job. Maintaining, never mind increasing, production from mature carbonate reservoirs without new drilling is rare, even exceptional,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani. “In Norway, we are applying a similar ‘can-do’ spirit to get our barrels from a string of recent discoveries out of the ground and into the market and do so faster than is the norm here,” he added.

In 2024, DNO took steps to expand its North Sea business by acquiring a 25 percent interest in the producing Arran field in the United Kingdom and interests in four producing fields and one development asset in the Norne area offshore Norway. Driven by contribution from these acquisitions, recovery of production in some fields following maintenance and Trym field restart, net North Sea production climbed to 19,000 boepd in the fourth quarter.

Meanwhile, DNO is taking part in four ongoing North Sea field development projects expected to come online between 2025 and 2028 that represent proven and probable reserves of some 30 million barrels of oil equivalent net to the Company. Two other discoveries, namely Ofelia/Kyrre (10 percent) and Cuvette (20 percent) are nearing development decisions.

Among the 2024 exploration highlights was the play-opening Othello light oil discovery (50 percent and operator), Norway’s second largest find last year. Prior to the discovery, DNO had already taken a strong acreage position in this area in close collaboration with Aker BP, host operator of nearby Valhall hub.

Overall, the Company plans to drill between four (firm) and six North Sea exploration wells in 2025. Meanwhile, complementing its ongoing exploration activities, last month DNO was awarded 13 new licenses in Norway’s 2024 Awards in Predefined Areas (APA) licensing round, including four operatorships, by the Norwegian Ministry of Energy.

Planned 2025 operational spend is ramped up to USD 750 million driven by increased North Sea activity.

DNO’s robust balance sheet supports growth and distributions to shareholders. The Board of Directors yesterday authorized a dividend of NOK 0.3125 per share in February, maintaining the quarterly distribution at the same level as last quarter.

A videoconference call with executive management will follow today at 14:00 (CET). Please visit www.dno.no to access the call.

Key figures

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For further information, please contact:
Media: media@dno.no
Investors: investor.relations@dno.no

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DNO ASA is a Norwegian oil and gas operator active in the Middle East, the North Sea and West Africa. 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, the United Kingdom, Côte d’Ivoire, Netherlands and Yemen.

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

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

Attachments

• 2024 Interim Results Presentation
• 2024 Interim Results Report