Core Insights - DNO ASA has confirmed a gas and condensate discovery at the Vidsyn prospect, enhancing its stake in the Norwegian Sea license PL586 to 25 percent following the acquisition of Sval Energi Group AS [1][2] - Preliminary estimates indicate gross recoverable resources of 25 to 40 million barrels of oil equivalent (MMboe), with a mean estimate of 31 MMboe, surpassing pre-drill expectations [2] - The Vidsyn discovery is located in high-quality reservoir sandstones of the Middle Jurassic Ile formation and is considered commercial by the partnership, which includes Vår Energi ASA [2][3] Company Operations - DNO ASA has been active in Norway since 2017, participating in over a dozen discoveries on the Norwegian Continental Shelf, including three operated by the company [4] - The company currently produces approximately 80,000 barrels of oil equivalent per day from over 30 fields in the North Sea and is involved in six ongoing field development projects [5] - DNO holds interests in 138 permits in the North Sea and plans to drill three additional exploration wells later this year [5]

Core Viewpoint - DNO ASA reported strong operational performance in Q1 2025, highlighted by a significant acquisition and increased production levels, indicating a positive outlook for the company moving forward [2][6]. Financial Performance - The company achieved an operating profit of USD 28 million and revenues of USD 188 million in Q1 2025, both reflecting quarter-on-quarter increases [1]. - Net profit for the quarter was reported at a loss of USD 4 million, an improvement from a loss of USD 98 million in Q4 2024 [9]. - Free cash flow was negative at USD 19 million, compared to a negative USD 5 million in the previous quarter [10]. Production and Operations - DNO's net production rose by 8% to 84,200 barrels of oil equivalent per day (boepd), with contributions from Kurdistan (61,600 boepd), North Sea (19,300 boepd), and West Africa (3,400 boepd) [2]. - In the Kurdistan Tawke license, production increased by 11% quarter-on-quarter, demonstrating effective management despite challenges [3]. - The company maintained production levels with minimal investment, showcasing operational efficiency [5]. Acquisition Impact - DNO announced a transformative USD 1.6 billion acquisition of Sval Energi Group AS, expected to close around midyear 2025 [2][6]. - Post-acquisition, DNO's North Sea proven and probable reserves will quadruple to 189 million barrels of oil equivalent (MMboe), and production will also quadruple to 80,000 boepd [6]. Exploration Activities - The company continued its exploration efforts offshore Norway, achieving two discoveries that added recoverable resources of 26 million barrels of oil equivalent net to DNO [5]. Financial Strategy - Following the Sval acquisition announcement, DNO completed a USD 600 million bond placement, enhancing its financial position with cash deposits of USD 1,473 million at the end of the quarter [7]. - The Board of Directors authorized a dividend payment of NOK 0.3125 per share, reflecting confidence in the company's financial health [8].