Presentation of Interim results

1st quarter 2003Managing Director Helge EideCFO Haakon Sandborg

Highlights

All time high productionFavourable oil pricesEncouraging drilling resultsRecord breaking financial results

Main key figures

236108

299

272355580

Q1 2003

-7724Profit (loss) after Tax146

75

93191368

Q1 2002

552Netback

287Profit (loss) before Tax

523Operating Profit967EBITDA

1 691Operating Revenues2002All figures in million NOK

DNO Mission

“DNO shall be a leading, international niche player engaged in both the

development of smaller oil & gas fields, and in extended production and increased

recovery from mature petroleum fields”

DNO Strategy

Operator and / or active partnerNetworkingBest practice from oil companies and contractorsInvestments in Offshore and Services

Does DNO’s strategy work?Historical production

2 886

6 920

13 235

22 399

29 307

2 3640

5 000

10 000

15 000

20 000

25 000

30 000

1998 1999 2000 2001 2002 YTD 2003

Value creationCROGICash Return On

Gross Investments

Gross Investments NetBack

Acquisitions Exploration/Development

RevenueGrowth

CostEfficiency

Value creation is driven by profitable growth in cash flow expressed as cash return on gross investments (CROGI)Key Performance Indicators linked to main value drivers: production growth, reserve replacement rate, direct field per bbl etc

DNO’s Monthly Oil Production

15 000

20 000

25 000

30 000

2002 2003

YTD 2003: 29 307

Reserves (BBLS)Oil Reserves

0

20

40

60

80

100

120

RES

31.12

.01

REVI

SION

S

DISC

OVER

IES

ACQU

ISIT

IONS

PROD

UCTI

ON

RES

31.12

.02

Gas Reserves

0

5

10

15

20

25

RES

31.12

.01

REVI

SION

S

DISC

OVER

IES

ACQU

ISIT

IONS

PROD

UCTI

ON

RES

31.12

.02

DNO in the world

PL 292

PL 036C

PL 148

PL 167 + 167B

PL 088BS

Norway

PL 006C

PL 203

Glitne & Enoch

PL 103B

Jotun Unit

Thistle

UK

Solan/Strathm

Broom

Heather

Yemen

Block 43

Sharyoof

Tasour

Equitorial Guinea

Block P

Seven Heads

Ireland

Overview; United KingdomOil production

0

5 000

10 000

15 000

0301 0601 0901 1201 0302 0602 0902 1202 0303

Operational efficiency and cost focus on Heather & ThistleBroom Development Plan

Amerada Hess3,70Solan/Strathmore

DNO99,00Thistle

DNO55,00Broom

DNO 100,00Heather

Operator%Name

Broom

Development Plan completedFirst oil during 2004Extension of Heather production by 10 + years

Overview; NorwayOil production

0

5 000

10 000

15 000

0301 0601 0901 1201 0302 0602 0902 1202 0303

Stable productionAcquired several new license interestsIncreased interest to 15 % in PL 203 areaDrilling on PL 203

DNO100,00PL 292

DNO100,00PL 006C

Marathon15,00PL 088BS*

Marathon15,00PL 036C*

DNO50,00PL 148

Marathon15,00PL 203

Statoil20,00PL 167 + 167B

Statoil10,00Glitne & Enoch

DNO70,00PL 103B

Exxon/Mobil7,00Jotun Unit

Operator%Name

PL 203

Kneler oil discoveryCa 50 mtr. gross oil columnPotential for increased reserves

Overview; InternationalOil production

0

5 000

10 000

15 000

0301 0601 0901 1201 0302 0602 0902 1202 0303

Record productionSuccessful drilling resultsPositive test results on Seven HeadsFirst lisence interest in West-AfricaRamco12,50Seven Heads, Irl.

Ocean EnergyTBABlock P, Eq. Guinea

DNO73,00Block 43

Dove Energy 24,45Sharyoof

DNO41,00Tasour

Operator%Name

Tasour (Block 32)

Record production from the fieldImproved geological understanding of the Tasour areaPotential for additional reserves in the Western flank

Overview; IrelandPartners:– Ramco: 86,5 %– IPDL (DNO): 12,5 % – Sunningdale Oils 1,0 %

Plan of Development approved March 2003Positive test results of production well 48/24-6 Gas deliveries to commence before the end of 2003

Overview; Equatorial Guinea

Participation in Block P, offshore Rio Muni in Equatorial GuineaPartners:– Ocean Energy– Petronas– Atlas Petroleum– DNO

Equity TBA

Other activities

Optimizing PortfolioCorporate GovernanceAIM Listing

2003 Outlook

Potential for production above 26’ BOPD target if positive outcome from drilling– Glitne, Tasour, Sharyoof

High drilling activity - potential for increased reserves– Bl. 43, Tasour, Sharyoof, PL 203, PL 167

Progress Broom DevelopmentFirst gas production 4 Q 2003

Financials

1st Quarter 2003CFO Haakon Sandborg

Financial Highlights

36 % increase in operating revenuesExploration activities Record EBIT and NetbackPositive net financeInvestments in Seven Heads

P & L Statement

108-191299270

272-5

-73388355

-197-33580

Q1 ‘03

-7724-6846-79Profit (loss) after Tax-364-51-60-120-133Taxes28775-716654Profit (loss) before Tax-44-13-30-109Net Financial Items

-192-4-122-20-46Earnings in Associated Companies5239314419691Operating Profit-79-12-9-9-49Abandonm Provisions, Write-down

-352-86-96-78-91DD&A1 081224302290265EBITDAX

967191249283244EBITDA -623-145-155-150-173Operating Exp , excl expl & DD&A-114-33-53-7-21Exploration and Impairment

1 691368457440425Operating Revenues2002Q1 ‘02Q2 ‘02Q3 ‘02Q4 ‘02All figures in million NOK

Financial Items

-15

27

2-115

-12

254

183

Q1 ’03

-44-13-29-109Net Finance

-153-23-72-14-44Financial expenses-31 -31 -1 -3 -22 Other financial expenses-66 -66 -58 3 -8 Disagio / agio-56 -15 -13 -15 -14 Interest expenses

1091043453Financial revenues33 0 5 -3 31 Agio, other financial revenues64 6 36 4 18 FX-contracts, swaps13 3 2 4 4 Interest revenues

2002Q1 ‘02Q2 ‘02Q3 ‘02Q4 ‘02All figures in million NOK

BS - Assets

2 3532 0412 371TOTAL ASSETS347264541Total Current Assets255180275Other Current Assets16484267Cash and Cash Equiv

2 0061 7771 830Total Fixed Assets

150142135Intangible Assets

485256269Financial Fixed Assets1 3721 3791 427Fixed Assets

31.12.200131.12.200231.03.2003All figures in million NOK

BS - Equity and Liabilities

2 3532 0412 371EQUITY AND LIABILITIES320241389Total Short-Term Debt320241389Other Short-Term Debt

1092898962Total Long-Term Liabilities441346382Prov for Liabilities and Charges651553579Interest-Bearing Long-Term Debt9429021 021Shareholders´Equity

31.12.200131.12.200231.03.2003All figures in million NOK

Cash Flow

26784

18332

-141292380

73-119299

Q1 2003

137156-19-95-23990

122101

-117-7

Q2 2002

156164

-875

-67-17

-1434

92-4576

Q1 2002

164137210Cash at beginning of period

-461-116-255CF used in investing activities424178163CF provided by operating activities-72664Changes in working capital / adjustm.1922046Associated companies43283156Depreciation, depletion and amort.

-4311-34CF from financing activities-8073-125Net Change in Cash

-415-97-156Taxes paid for the period

84

54Q4 2002

210

166Q3 2002

84

2872002

Cash at end of Period

Consolidated profit before taxAll figures in million NOK

Value CreationCROGI

Cash Return On Gross Investments

Gross Investments NetBack

Acquisitions Exploration / Development

RevenueGrowth Cost Efficiency

Value creation is driven by profitable growth in cash flow expressed as cash return on gross investments (CROGI)Key Performance Indicators linked to main value drivers: Growth in production, reserve replacement rate, direct field per bbl etc

Oil Production

Production increase– Thistle acquisition– Block 32 Yemen

Increase from 4Q02– 474 394 barrels– 5 271 barrels per day

0

5 000

10 000

15 000

20 000

25 000

30 000

0301 0601 0901 1201 0302 0602 0902 1202 0302

NORWAY UK YEMEN

Oil Price vs FX (April 2001 - March 2003)

6,5

7

7,5

8

8,5

9

9,5

A M J J A S O N D J F M A M J J A S O N D J F M17

19

21

23

25

27

29

31

33

35Brent Spot NOK/USD

Average Brent spot first quarter, 31,47 USD/BBL, up from 27,34 USD/BBL in fourth quarter 2002

Revenue Development

0

100

200

300

400

500

600

0301 0601 0901 1201 0302 0602 0902 1202 0303

NCS UKCS International IOT

Production increase Bl. 32 and UK Thistle acquisitionFavourable oil prices

Production & Transport ExpensesIncrease in production and transportation expenses at group levelThistle contributing positively to unit cost reduction on the UKCSIncreased contribution to total production from UKCS, results in a slightly higher production and transport expense per bbl for the group

99110 116 117 112

122 115 120

165

0

50

100

150

200

0301 0601 0901 1201 0302 0602 0902 1202 0303

Direct field NOK mill

0

5

10

15

20

25

0301 0601 0901 1201 0302 0602 0902 1202 0303

NCS UKCS INT Direct field per bbl

DD&A, G&A and Other Expenses

No impact on DD&A from Thistle acquisitionLower G&A and other expenses in the first quarter

53 51 51

7486

96

78

91

73

0

20

40

60

80

100

120

0301 0601 0901 1201 0302 0602 0902 1202 03030

1

2

3

4

5

6

7DD&A nok mill DD&A per bbl

1410 10

16 1721 22

37

20

05

1015

2025

3035

4045

50

0301 0601 0901 1201 0302 0602 0902 1202 030300,5

11,5

22,5

33,5

44,5

5G&A in NOK mill G&A per bbl

EBITDA per Unit and Net Back

Increase in netback caused by strong EBITDA and no tax payments NCS in the first quarter

0

100

200

300

400

0301 0601 0901 1201 0302 0602 0902 1202 0303

NCS UKCS INT

0

100

200

300

0301 0601 0901 1201 0302 0602 0902 1202 0303

Net Back

Revenues, EBITDA, EBIT, Net Profit

Strong EBIT and EBITDANo impact from offshore and servicesRecord net profit

0

200

400

600

0301 0601 0901 1201 0302 0602 0902 1202 0303

Revenues EBITDA EBIT

-100

-50

0

50

100

150

0301 0601 0901 1201 0302 0602 0902 1202 0303

Net profit Net profit, adjusted

CROGIHigh cash flow returns after tax validating business strategyOn normalized basis (USD 18 per bbl and USD/NOK 7,5), exceeding CoC

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

40 %

45 %

0301 0601 0901 1201 0302 0602 0902 1202 0303

CROGI Actual CROGI Norm

Key Figures

-2,3%8,60 %-14,50 %14,60 %-18,30 %30,7 %ROACE (actual)17,6%17,30 %13,80 %18,90 %10,60 %26,60 %CROGI (normalised)

19,10,6

40,328,2 %

20,30 %31,554,54,95

-1,34Q2 2002

19,10,5

41,221,2 %

28,60 %44,464,35,620,91

Q3 2002

0,81,00,60,4Debt/EBITDA

25,5%23,20 %14,60 %41,60 %CROGI (actual)

57,251,857,461,2EBITDA Margin

15,3%10,8 %9,8 %32,0 %ROACE (adjusted)

2002Q1 2002Q4 2002Q1 2003

29,5

43,0

47,0

6,552,04

17,3

44,2

21,3

4,85-1,55

12,8

38,8

25,2

3,780,49

17,0EBITDA/Interest Expense

44,2Equity Ratio

30,9EBIT Margin

19,20EBITDA per Share-1,50Earnings per Share

Appendices

DNO Share Price last 12 months

12

13

14

15

16

17

18

19

2.4. 2.5. 2.6. 2.7. 2.8. 2.9. 2.10. 2.11. 2.12. 2.1. 2.2. 2.3.100

110

120

130

140

150

160

170

180

DNO OSE10 Energy OSEAX

ShareholdersNATIONALITYPERCENTSHARESNAME

10987654321

36,5519 828 264TOTAL1,851,922,042,342,762,833,323,693,69

12,11

NOR1 004 500LIVIUS INTERIØR AS C/O LARSEN OIL & GASNLD1 045 000KAS DEPOSITARY TRUSTNOR1 105 740DNO ASA NOR1 271 333SLETTHEI AS LEIF INGE NOR1 499 759SKAGEN VEKST USA1 537 000UNISTAR HOLDINGS INC NOR1 802 148LARSEN OIL & GAS AS GBR1 999 642THE LAW DEBENTURE TRUST NOR2 000 000DET STAVANGERSKE DAMSKIPSSELSKAPNOR6 563 142INCREASED OIL RECOVERY