14th Quarter 20014th Quarter 2001

DNO ASA

Corporate Presentation 19.02.02

2

NORWAYNORWAY

UKUK

YEMENYEMEN

DNO ASA Key Facts

• International E & P Company

• Listed on Oslo Stock Exchange

• Outstanding shares: 51,6 Million

• Current Market value: 730 MNOK

• 2001 Production Growth 92 %

• 2001 Revenue Growth: 78 %

8402160 2360 2880

6920

13255

0

2000

4000

6000

8000

10000

12000

14000

bbl/d

Oil Production

3

2001 Highlights

4

Year 2001 Highlights

The Overall 2001 Performance exceeded our expectation

DNO Group delivers the best results in thehistory of the Company

5

2001 Operational Highlights

ProductionAverage Daily Oil Production of 13,255 BOPD - up 92 %

Appraisal & Development Drilling1 Heather Infill Well (DNO)

1 West Heather Appraisal Well (DNO)

2 Tasour Producers (DNO)

Field DevelopmentGlitne Field on Stream in August

Sharyoof Field on Stream in December

6

2001 Financial Highlights

Gross Revenue 1,200 MNOK – UP 78 %

EBITDA 595 MNOK – Up 144 %

EBIT 367 MNOK – Up 203 %

Net Profit 134 MNOK – Up 168 %

Strong Growth in Financial Performance:

7

Production 2001 by Business Areas bbl/d

• Diversified portfolio of producing assets

• Increased Production in 4 Q

5642 61984889 5801

4103 33833944

6076

3429 33002889

3281

0

2000

4000

6000

8000

10000

12000

14000

16000

1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001

bbl//

d

Yemen

Norway

UK

8

Reserves Oil and Gas Group (mboe)

Net Change:

• 2001 Production: (4,84)

• Sale: (1,29)

• Revisions: 10,00

• Acquisitions: 2,22

• Discoveries: 10,90

10 -

20 -

30 -

40 -

50 -

60 -

70 -

66.90

83.89

31.12.2000 31.12.2001

Proved and Probable Reserves

0 -

80 -

90 -

Net change

16.99

mbo

e

+ 25 %

9

Key FinancialsJanuary – December 2001

10

DNO Production vs. Brent Price

0

5000

10000

15000

20000

25000

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan-02

bbl/d

0

5

10

15

20

25

30

Mon

thly

Bre

nt U

SD/b

bl

11

• Operating Profit Down due to Oil Price Decline and Higher DDA Costs

• Revised Tax Estimates for 2001

Income Statement 4Q 2001

(NOK mill.) 4Q01 3Q01 2Q01 1Q01 4Q00 Yr 01 Yr 00

Operating Revenue 271 327 314 287 208 1.199 673 Operating Expenses, excl DD&A 153 144 136 130 136 -564 -429 EBITDA 117 142 178 157 72 595 244 DD&A 96 51 51 53 20 250 77 Abandonment Provisions, Write-down 2 7 4 5 45 18 45 Operating Profit 20 125 123 99 7 367 121 Earnings in Associated Companies -13 -0 -13 -7 -15 -33 -31 Net Financial Items -4 -14 -17 9 -13 -26 4 Profit (loss) before Tax 3 112 93 100 -21 308 94 Taxes 29 -69 -70 -63 16 -174 -44 Profit (loss) after Tax 31 42 23 37 -5 134 50

120

50

100

150

200

250

300

350

1Q01 2Q01 3Q01 4Q01

NO

K m

ill

Production- and Transp. Cost (NOK mill.)

Production- and Transp. Cost per bbl. (USD)

1Q01 2Q01 3Q01 4Q01

99 110 116 117

9,46 9,95 11,77 9,2

Operating Revenue

EBITDA

EBIT

Quarterly Performance

13

Annual Income Statement• Strong Growth in 2000-2001

-200

0

200

400

600

800

1000

1200

1400

1996 1997 1998 1999 2000 2001

NO

K m

ill

- 30

- 25

- 20

-15

-10

- 5

- 0

Operating RevenueEBITDAEBITBrent Spot

Brent Spot

14

Business Unit Revenue and EBITDA in 2001

Revenue Per Business Unit

NCS

UKCS

INT

OffshoreServices

EBITDA Per Businesss Unit

NCS

UKCS

INT

OffshoreServices

15

Balance Sheet YE 2001 - Assets

• Further Investment in Producing Assets

Assets YE 2001 Q3 2001 YE 2000(NOK mill.)

Fixed Assets 1.372 1.204 632Financial Fixed Assets 485 502 495Intangible Assets 150 122 128Total Fixed Assets 2.006 1.828 1.254

Cash and Cash Equiv. 164 222 88Other Current Assets 184 276 255Total Current Assets 347 499 343

Total Assets 2.353 2.327 1.597

16

Balance Sheet YE 2001 –Shareholders’ Equity and Liabilities

• No major changes in 4Q01

Sharholders' Equity and Liabilities YE 2001 Q3 2001 YE 2000(NOK mill.)

Shareholders´Equity 942 916 797

Interest-Bearing Long-Term Debt 651 650 158Provisions for Liabilities and Charges 396 391 316Total Long-Term Liabilities 1.047 1.042 474

Interest-Bearing Short-Term Debt 0 0 104Other Short-Term Debt 365 370 222Total Short-Term Debt 365 370 326

Total Debt and Shareholders´Equity 2.353 2.327 1.597

17

DNO Balance Sheet

• Significant Asset Growth• Maintaining Moderate Leverage

0

500

1000

1500

2000

2500

1996 1997 1998 1999 2000 2001

NO

K m

ill

Other Liabilities

Interest-Bearing Debt

Equity

18

(NOK mill.) 4Q01 3Q01 2Q01 1Q01 Yr 01 Yr 00Cash Flow from Operations 145 154 153 182 634 150Cash Flow from Investing -170 -371 -98 -244 -884 -460Cash Flow from Financing -33 -36 360 34 325 297

Net Change in Cash -59 -252 415 -29 76 -13Cash at beginning of Period 222 475 59 88 88 102Cash at end of Period* 164 222 475 59 164 88* Net of Removal Deposit

• Maintaining Strong Cash Flow from Operations

• High Investment Levels

Cash Flow 4Q 2001

19

-1000

-800

-600

-400

-200

0

200

400

600

800

NO

K m

ill

200120001999199819971996

Cash Flow from OperationsCash Flow from Investing

Cash Flow from FinancingChange in Cash Balance

Annual Cash Flow• Operational Cash Flow Covered 72% of 2001 Investments

20

Key Figures - Financial Performance

• Significant Increase in Cash Flow and Profitability in 2001

4Q01 3Q01 2Q01 1Q01 4Q00 Yr 01 Yr 00Earnings per Share NOK 0,61 0,83 0,46 0,74 -0,18 2,64 1,15EBITDA per Share NOK 2,28 2,76 3,45 3,13 1,44 11,64 5,57

EBITDA Margin % 43,3 43,5 56,7 54,8 34,8 49,6 36,2EBIT Margin % 7,5 38,3 39,1 34,3 3,5 30,6 18ROACE* % 11,1 15,5 10,8 14,8 1,1 13,9 7,2CROGI* % 23,9 11,9 18,9 19,0 23,5 19,2 21,0

Equity Ratio % 40,0 39,4 38,5 43,3 49,9 40,0 49,9Debt/EBITDA* x 1,4 1,1 1 1 0,9 1,1 1,1EBITDA/Interest Expense x 8,1 6,4 10,8 64,7 6,6 10,7 14,5

* Annualized

21

Business Areas

22

Overview Norway

• PL 103B Jotun 7%* Exxon/Mobil

• Glitne Field 10% Statoil

• PL 203 15% Hydro

• PL 148 30% A. Hess

• PL 006C 10% A. Hess

* 3.75% of this interest is pending the authorities approval and would imply operatorship in PL 103b

Operator

23

Production Norway

• Increase in production 2 H due to Glitne on stream

• Increase in January due to 3.75 % additional share in Jotun

1719

41033383

3944

6076

8077

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

4th Q.2000

1st Q.2001

2nd Q.2001

3rd Q.2001

4th Q.2001

Jan. 2002

bbl/d

24

Reserves Oil and Gas Norway (mboe)m

boe

4.41

15.03

31.12.2000 31.12.2001

Proved and Probable Reserves

Jotun 1.25%

Jotun 3.25%

Glitne10%

16 -

14 -

12 -

10 -

8 -

6 -

4 -

2 -

0 -Net change

10.62

Net Change:

• 2001 Production (1,60)

• Sale -

• Revision 10.0

• Acqusitions 2,22

+ 241 %

25

2002 Outlook - Norway

• Annual production: 6.500 - 7.500 BOPD

• Accelerated Infill Drilling on Jotun

• Harvest Production on Glitne

• PUD on PL 203

• Evaluate New Acquisitions

• Additional 3.75 % in Jotun

26

Overview Yemen

• Block 32 Tasour (Operator) 41.0%

• Block 43 (Operator) 73.0%

• Block 53 Sharyoof 32.6%

27

Production - Yemen

• Tasour performance better than expected

1344

3429 33002889

3281

7841

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

4th Q.2000

1st Q.2001

2nd Q.2001

3rd Q.2001

4th Q.2001

Jan. 2002

bbl/d

• Sharyoof field on stream in December

28

Reserves of Oil and Gas in Yemen (mboe)m

boe

9.48.2

31.12.2000 31.12.2001

Proved and Probable Reserves

10 -

8 -

6 -

4 -

2 -

0 -

Net change

-1.2

Net Change:

• 2001 Production (1,2)

• Sale -

• Revision -

• Acqusitions –

• Discoveries -

- 13 %

29

2002 Outlook - Yemen

• Annual production: 6.500 - 7.500 BOPD

• Drilling 2 - 3 additional production Wells on Sharyoof

• Harvest Production on Tasour

• Commence work in Block 43

30

Overview UK

• Heather + West Heather (Operator) 100%

• Solan / Stratmore 3.7%

31

Production UK

• Infill drilling & well interventions keeps production > 5.000 Bopd

5575 56426198

4889

5801 5594

0

1000

2000

3000

4000

5000

6000

7000

4th Q.2000

1st Q.2001

2nd Q.2001

3rd Q.2001

4th Q.2001

Jan. 2002

bbl/d

32

Reserves of Oil and Gas in UK (mboe)

10 -

20 -

30 -

40 -

50 -

60 -

70 -

53.1460.75

31.12.2000 31.12.2001

Proved and Probable Reserves

0 -

80 -

90 -

Net change

7.61

mbo

e

Net Change:

• 2001 Production (2,04)

• Sale (1,29)

• Revision -

• Acquisitions -

• Discovery 10,94

+ 14 %

33

2002 Outlook - UK

• Annual production: 5.000 BOPD

• Continue Heather Well Interventions

• Bring in Partner on West Heather

• Progress West Heather Development Plan

34

DNO Group

Performance & Outlook

35

”DNO shall be a leading, international niche player

DNO’S VISION

engaged in both the development ofsmaller oil & gas fields,

and in extended production andincreased recovery from mature

petroleum fields.”

36

• Operator or active Partner

• Project-oriented Network

• Investments in Rigs and Oil Service

KEY STRATEGIES

37

8402160 2360 2880

6920

13255

0

2000

4000

6000

8000

10000

12000

14000

bbl/d

1996 1997 1998 1999 2000 2001

Group Total Production 1996 - 2001

38

-200

0

200

400

600

800

1000

1200

1400

1996 1997 1998 1999 2000 2001

NO

K m

ill

- 30

- 25

- 20

-15

-10

- 5

- 0

Brent Spot

EBITOperating Revenue EBITDA Brent Spot

Heather Operatorship

Investments in Yemen

Heather 100 %Record Performance

Re-entry to Norway

39

THE STRATEGY HAS WORKED !

Group Total Performance 1996 - 2001

40

“Trippel Oil Production within 2-3 years

from current projects”

“Capitalize on the window of opportunity on NCS and UKCS”

“DNO IS WELL POSITIONED FOR GROWTH ! “

41

0

5000

10000

15000

20000

25000

30000

4 Q 1999 1 Q 2000 1 Q 2001 1 Q 2002 1 Q 2003 1 Q 2004

YEMENNORWAYUK

Bopd

420

5000

10000

15000

20000

25000

1 Q 2000 1 Q 2001 1 Q 20020

5000

10000

15000

20000

25000

1 Q 2000 1 Q 2001 1 Q 2002

YEMENNORWAYUK

April 2000 Forecast Actual

43

Production 2001 by Business Area

Yemen

Norway

UK5575 5642 6198 4889 5801 5594

17194103 3383

39446076 8077

1344

3429 33002889

3281

7841

0

5000

10000

15000

20000

25000

4th Q.2000

1st Q.2001

2nd Q.2001

3rd Q.2001

4th Q.2001

Jan. 2002

bbl/d

• Diversified License Portefolio

• Record Production in January 2002

21.512Bopd

44

Reserves Oil and Gas Group (mboe)

Net Change:

• 2001 Production: (4,84)

• Sale: (1,29)

• Revisions: 10,00

• Acquisitions: 2,22

• Discoveries: 10,90

10 -

20 -

30 -

40 -

50 -

60 -

70 -

66.90

83.89

31.12.2000 31.12.2001

Proved and Probable Reserves

0 -

80 -

90 -

Net change

16.99

mbo

e

+ 25 %

45

• Annual Production: 18.000 – 20.000 Bopd

• Increased production from Norway and Yemen

• Explore for new acquisitions and investment opportunities

• Progress plans for exploiting the undeveloped reserves

2002 Outlook – DNO Group

46

Future Strategy

• Demerger of Offshore & Services

• Niche E & P Company with priority on the ”P”

• Maintain focus on Small Field Development and Extended Production from Mature Fields

• Build Diversified International License Portefolio

47

Web Site

www.dno.no