Pareto Oil & Offshore Seminar 5 September 2001

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1 Pareto Oil & Offshore Seminar 5 September 2001 Helge Eide Managing Director

2 2001 Introduction Financial Performance Overview of Activities Short Term Outlook

3 Niche Oil Company Substantial expansion during past 5 years Solid basis for further growth

4 KEY STRATEGIES Operator or active Partner Project-oriented Network Investments in Rigs and Oil Service

5 DNO S VISION 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.

6 BUSINESS STRUCTURE Oil & Gas Oil & Gas Offshore & Services Det Det Norske Norske Oljeselskap AS AS DNO DNO Britain Britain Ltd Ltd DNO DNO International PDR ASA 37,2% PDR ASA 37,2% IOT AS 100,0% IOT AS 100,0% Clampon AS 36,0% Clampon AS 36,0% 12 Petroleum Licenses Staff = Network Companies

7 LICENSE PORTEFOLIO NORWAY NORWAY Lisence Lisence Interest Interest Operator Operator Jotun Jotun 3.25% 3.25% Exxon/Mobil Exxon/Mobil Glitne Glitne 10.00% 10.00% Statoil Statoil PL PL % 15.00% N. N. Hydro Hydro Tyr Tyr 10.00% 10.00% Amerada Amerada Hess Hess PL PL % 30.00% Amerada Amerada Hess Hess UK UK License License Interest Interest Operator Operator Heather Heather % % DNO DNO W. W. Heather Heather % % DNO DNO P. P % % DNO DNO Claymore Claymore 1.00% 1.00% Talisman Talisman Solan Solan 3.70% 3.70% Am. Am. Hess Hess YEMEN YEMEN License License Interest Interest Operator Operator Tasour Tasour 41.00% 41.00% DNO DNO Sharyoof Sharyoof 24.45% 24.45% Dove Dove Energy Energy

8 2001 Introduction Financial Performance Overview of Activities Short Term Outlook

9 HIGHLIGHTS 1. H 2001 Average Oil Production: BOPD Operating Revenue: MNOK 561,5 Operating Profit: MNOK 189,2 EBITDA: MNOK 293,1 Bond Issue: MNOK 500 Free Cash Reserves as of June 2001: MNOK 474,5

10 OIL PRODUCTION BOPD Q Q Q 00 4.Q Q Q. 01

11 BUSINESS PERFORMANCE MNOK Q Q Q Q Q Q 01 OPERATING REVENUE

12 BUSINESS PERFORMANCE MNOK Q Q Q Q Q Q 01 OPERATING REVENUE OPERATING PROFIT

13 BUSINESS PERFORMANCE MNOK Q Q Q Q Q Q 01 OPERATING REVENUE OPERATING PROFIT EBITDA

14 1. H 2001 Main Financials 1. H 1. H NOK mill Average Oil Production (BOPD) Operating Revenue 561,5 302,1 Operating Profit 189,2 90,9 Result before tax 161,4 98,5 Result after tax 67,9 67,5 EBITDA 293,1 133,1

15 OIL PRODUCTION BOPD * * 1 H 2001

16 REVENUE & EBITDA MNOK Operating Revenue * * 1 H 2001

17 REVENUE & EBITDA MNOK Operating Revenue EBITDA * * 1 H 2001

18 BOOK VALUE OF TOTAL ASSETS MNOK DEC 1995

19 BOOK VALUE OF TOTAL ASSETS MNOK DEC 1995 JUNE 2001

20 2001 Introduction Financial Performance Overview of Activities Short Term Outlook

21 LICENSEPORTEFOLIO - UK UK UK Lisence Lisence Interest Interest Operator Operator Heather Heather % % DNO DNO W. Heather % W. Heather % DNO DNO P. 250 P % % DNO DNO Claymore Claymore 1.00% 1.00% Talisman Talisman Solan Solan 3.70% 3.70% Am. Hess Am. Hess

22 UK LICENSES

23 HEATHER AREA 3 ALLION ey ds Shetland Islands 6 7 DUNLIN/MERLIN EIDER MURCHISON TERN STATFJORD HUDSON HUTTON / NW HUTTON CORMORANT PELICAN BRENT 1 HEATHER STRATHSPEY LYELL ALWYN NORTH EMERALD ELLON NINIAN/ DUNBAR COLUMBA BRUCE NESS NEVIS 4 BERYL FRIGG 10 GRYPHON HARDING Heather Alpha ND BEINN SEDGWICK BRAE AREA CLAYMORE PIPER CAPTAIN TARTAN ROSS SCOTT BEATRICE BRITANNIA,ALBA BUCHAN FORTIES KITTIWAKE DAUNTLESS DURWARD GUILLEMOT GANNET ETAP ELGIN,FRANKLIN CURLEW EAST BRAE KINGFISHER MILLER LARCH BIRCH T BLOCK BALMORAL,GLAMIS, MAUREEN STIRLING ARMADA EVEREST NELSON MONTROSE,ARBROATH LOMOND PIERCE MACHAR ERSKINE JOANNE/JUDY 2/4 2/5 3/1 Net to DNO (100 %) BOPD JAN FEB MAR APR MAI JUN

24 HEATHER RESOURCES Prospect with mill. bbls Resource potential Heather Main SS PETROLIA West Heather North Terrace + South Terrace P + P Reserves 50 MILL. FAT South-West Heather 2/4 2/5 3/1

25 HEATHER & WEST HEATHER Heather + West Heather Development Concept 50 Mill. BOE

26 LICENSE PORTEFOLIO - NORWAY NORWAY License Interest Operator Jotun 3.25% Exxon/Mobil Glitne 10.00% Statoil PL % N. Hydro Tyr 10.00% Amerada Hess PL % Amerada Hess

27 NORWAY JOTUN FIELD % (EXXON/MOBIL OPERATOR) GLITNE FIELD - 10,00 % (STATOIL OPERATOR) PL % (NORSK HYDRO OPERATOR) PL 006C % (BP OPERATOR) PL % (AMERADA HESS OPERATOR)

28 Produksjon (kbd) JOTUN Vanninnhold PRODUCTION BOPD % År Olje Væske Vanninnhold INITIAL RESERVERS: 190/33 MMBBL/BSCF FIRST OIL NOVEMBER 1999

29 JOTUN Jotun Partners Exxon/Mobil (OP) : % DNO : 3.25 % Enterprise : % Conoco : 3.75 % SDØE : 3.00 % Net to DNO (3.25 %) BOPD JAN FEB MAR APR MAI JUN

30 GLITNE Sm3/dag Production Forecast Reserves: 25 mill. BOE Net to DNO 2,5 mill. BOE (10 %)

31 GLITNE Statoil Operator 58.9% DNO 10.0 % Total/Elf/Fina 21.8% Pelican 9.3% First Oil 29 August 2001

32 PL 203 Status: Field Development Plan for gas late 2001 Development of oil resources now more likely Resources (Net to DNO): Gas: Oil: 7 mill. BOE 3 mill. BOE

33 TYR PROSPECT (PL 006 C) Resource Potential: (Net to DNO): 12 mill. BOE Expected start of drilling: November 2001

34 LICENSE PORTEFOLIO - YEMEN YEMEN License Interest Operator Tasour 41.00% DNO Sharyoof 24.45% Dove Energy

35 YEMEN bopd production

36 YEMEN Tasour Sharyoof Tasour Initial Reserves: 8 Mill. BOE (DNO 3.1 Mill. BOE) Sharyoof Initial Reserves: 25 Mill. BOE (DNO 6.1 Mill. BOE)

37 YEMEN BOPD JAN FEB MAR APR MAI JUN Tasour Net to DNO Fast Track Development - 9 months - MUSD 15 First Oil November 2000

38 2001 Introduction Financial Performance Overview of Activities Short Term Outlook

39 MAIN ACTIVITIES 2 H 2001 First Oil on Glitne Drilling on West Heather Drilling in the Tasour Area PDO on PL 203 First Oil on Sharyoof Drilling the Tyr Prospect

40 DNO RESERVES (P+P) AS OF JUNE 2001 MILL BOE ,7 AS OF JANUARY 2001 PRODUCED 1 H 2001 PL 203 AS OF JUNE ,3

41 DNO RESOURCE POTENTIAL MILL BOE ,7 TYR WEST HEATHER (P50) AS OF JUNE 2001

42 Niche Oil Company Substantial expansion during past 5 years Solid basis for further growth

43

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