OKEA ASA

Investor Presentation • Apr 25, 2024

OKEA ASA

Presentation of first quarter 2024

25 April 2024

Cautionary statement

• This presentation contains forward looking information
• Forward looking information is based on management assumptions and analysis
• Actual experience may differ, and those differences may be material
• Forward looking information is subject to significant uncertainties and risks as they relate to events and/or circumstances in the future
• This presentation must be read in conjunction with the published financial reports of the company and the disclosures therein
• A full disclaimer is included at the end of this presentation

OKEA first quarter 2024 results

Highlights

• Operation

• All time high production of 42.1 kboepd largely driven by Statfjord area activities included in income statement and key figures
• OKEA operated assets: Brage and Draugen continue to perform well; additional volumes at Draugen from Hasselmus
• Partner operated assets: Stable production throughout the quarter; lower production at Gjøa following closing of one well due to sand production

• Portfolio

• Bestla sanctioned in Q1; PDO submission planned for 30 April
• Draugen Power from Shore progressing according to plan
• High activity level on infill and production drilling at Brage and Statfjord area
• Ongoing work at Statfjord area to improve production

• Financials

• Operating income of NOK 3,474 million and EBITDA of NOK 2,159 million
• Goodwill impairment of NOK 260 million on Statfjord asset; reversal of previous impairments of NOK 102 million at the Yme asset
• Contemplating USD 125 million four-year senior secured bond to strengthen liquidity and enhance financial flexibility ahead of investments in the Bestla development

Quarterly key figures

(Previous quarter in brackets* )

4 *SIF frequency is for 12 months rolling

**Draugen production volumes in Q1 24 includes a prior period adjustment of volumes from Hasselmus which increases production in Q1 24 by 1.1 kboepd ***Production efficiency from own operated assets

Production volume and efficiency

Production Efficiency (%) – Q1 23 to Q1 24*

5 *Gjøa & Nova combined as one CGU and all four Statfjord fields treated as one CGU (Statfjord area); production efficiency volume weighted **Draugen production volumes in Q1 24 includes a prior period adjustment of volumes from Hasselmus which increases production in Q1 24 by 1.1 kboepd

Operational update

Draugen (op. WI 44.56%)

• Draugen field continues to deliver consistent production; Hasselmus adding volumes to the asset
• Draugen licence extension to 31 December 2040 approved by Ministry of Energy

Brage (op. WI 35.2%) Brage (op. WI 35.2%)

• Lower production due to natural decline and no new production wells put in production during the quarter • Lower production due to natural decline and no new production wells put in production during the quarter
• Drilling activities continue; two new wells drilled in Q1; expected to come onstream in 2024 • Drilling activities continue; two new wells drilled in Q1; expected to come onstream in 2024
• Development well for Kim discovery considered • Maturing development well for Kim discovery

• Four of 10-15 wells planned for 2024 drilled in Q1
• Somewhat reduced volume expectations for 2024 due to two dry wells in Q4; two sidetracks to mitigate planned for end of 2024
• Ongoing work at Statfjord area to improve production

Statfjord area (WI 28%) Ivar Aasen (WI 9.2385%) Ivar Aasen (WI 9.2385%)

• Stable production during the quarter • Stable production during the quarter
• First well intervention campaign successfully completed in Q1; second campaign planned for Q4 2024 • First well intervention campaign successfully completed in Q1; second campaign planned for Q4 2024
• Maturation of IOR 2026 campaign ongoing • Maturation of IOR 2026 campaign ongoing

Gjøa & Nova (WI 12% & 6%)

• Lower production at Gjøa following temporary closure of one well due to sand production; mitigating actions assessed
• Stable production at Nova; rig secured for H2 2024 to drill fourth water injector
• Several tie-in candidates approaching Gjøa as potential host

Yme (WI 15%)

• Operations running well; production efficiency impacted by weather conditions preventing offloading
• Drilling of injection well completed in Q1; commenced operation in April
• Drilling of multilateral well solution for C-8 in Q2

Creating value through active operatorship – Draugen

Efficiency improved and production at highest level since Q3'19

Draugen thriving under OKEA operatorship Draugen gross production

• Draugen was winner of previous operator Shell's CEO HSSE & SP Award for 2017 and used as a global benchmark within Shell
• After taking operatorship in December 2018, OKEA has:
  • Improved production efficiency
  • Extended lifetime from 2027 to 2040+
  • Sanctioned electrification project will reduce CO2 intensity by 95% and production expense by 2027
  • Increased production recently to a 4.5-year high in Q1 2024 driven by solid operational performance and key contributions from Hasselmus
• OKEA continuously focuses on maturing additional reserves with PLX/ILX drilling, reducing production expense per boe, increasing production reliability and field lifetime extension

Creating value through active ownership – Brage

Increasing production through infill drilling, increased reliability and Bestla development

Revitalisation of Brage area well underway Brage gross production

• Since becoming operator in November 2022, OKEA has increased production by 3.8x to highest level since 2011 as a result of:
  • High production reliability 96% in 2023
  • Successful infill drilling campaign and Cook development, delivering above expectations
• Tangible benefits from experience sharing between Draugen and Brage organisations
• Bestla tie-back to Brage will add significant volumes, synergies and economics of scale
• Showcases OKEA's strategy to create additional value in areas close to existing infrastructure by identifying costeffective solutions that enable extraction of further volumes

Bestla overview – attractive subsea tie-back to Brage

Showcases OKEA's strategy for value creation via cost-effective solutions near existing infrastructure

• The Bestla (previously Brasse) will be developed as a two well subsea tie-back to the Brage platform, 13km to the north, which will function as host facility for production, processing, and export
• OKEA is operator for both fields with 39.2788% WI in Bestla and 35.2% WI in Brage
• Substantial overlap in license partners and ownership in Bestla and Brage and with OKEA operator of both assets; both licences benefit from synergies and economies of scale
• Use of standard solutions, well-proven technology, and close cooperation with strategic partners ensure an efficient and costeffective development and reduce risk
• Adding 10 kboepd at peak and 9.4 mmboe reserves (net OKEA)
• Attractive economics with expected payback within the first year after startup
• Production start scheduled for H1 2027

Summary Field overview

• 2P reserves (gross): 24 mmboe

• Capex (gross): NOK 6.3bn
• Peak production (gross): 26 kboepd
• Breakeven: ~40 USD/bbl

Financials

Oil and gas production, sales and revenues - per asset

The first quarter with volumes from Statfjord area included in income statement and key figures

Liquids Gas

11

* Draugen production volumes in Q1 24 include a prior period adjustment of volumes from Hasselmus which increases production in Q1 24 by 1.1 kboepd

Realised liquids prices

The first quarter with sold volumes from Statfjord area included in key figures

Gas market prices and sold volumes

The first quarter with sold volumes from Statfjord area included in key figures

Income statement

The first quarter with Statfjord activities included in income statement

Q1 2024 figures					Q1 2024 comments
Figures in NOK million	Q1 24	Q4 23	Q1 23	2023
Total operating income	3 474	2 118	2 954	8 885		petroleum products.
Production expenses	-839	-606	-518	-2 084
Changes in over/underlift positions and inventory	-385	208	-793	-684	•	Production expenses of NOK 839 million; corresponding to 198 NOK/boe
Depreciation	-778	-580	-327	-1 695
Impairment (-) /reversal of impairment	-158	-1 876	-94	-2 745	•	Impairments of NOK 158 million
Exploration, general and adm. expenses	-91	-58	-51	-360		Goodwill related to Statfjord asset of NOK 260 million –
Profit / loss (-) from operating activities	1 223	-795	1 170	1 316		Reversal of previous impairment at Yme asset of NOK 102 million –
Net financial items	-144	-78	-49	-217	•	Exploration, general and administrative expenses of NOK 91 million
Profit / loss (-) before income tax	1 080	-873	1 121	1 099		Exploration expenses of NOK 50 million –
Income taxes	-1 129	-390	-894	-2 034		SG&A expenses of NOK 41 million –
Net profit / loss (-)	-49	-1 263	226	-935
					•	Net financial expense of NOK 144 million – primarily due to;
EBITDA	2 159	1 661	1 592	5 756		Net FX loss of NOK 76 million –

• Operating income of NOK 3,474 million of which NOK 3,421 million from sale of petroleum products.
• Production expenses of NOK 839 million; corresponding to 198 NOK/boe
• Impairments of NOK 158 million
  • Goodwill related to Statfjord asset of NOK 260 million
  • Reversal of previous impairment at Yme asset of NOK 102 million
• Exploration, general and administrative expenses of NOK 91 million
  • Exploration expenses of NOK 50 million
  • SG&A expenses of NOK 41 million
• Net financial expense of NOK 144 million primarily due to;
  • Net FX loss of NOK 76 million
  • Net expensed interest of NOK 40 million
• Income tax expense of NOK 1,129 million
  • Effective tax rate of 105% mainly due to goodwill impairment

Statement of financial position

Figures in NOK million
Assets	31.03.2024	31.12.2023	31.03.2023
Goodwill	2 049	2 295	1 292
Oil and gas properties	7 130	7 199	6 496
Asset retirement reimbursement right	4 072	4 163	3 760
Trade and other receivables	1 932	1 211	1 793
Cash and cash equivalents	2 130	2 301	1 634
Other assets	1 286	1 331	935
Total assets	18 599	18 500	15 911
Total equity	676	726	2 200
Liabilities
Asset retirement obligations	9 258	9 535	5 958
Deferred tax liabilities	1 013	888	2 594
Interest bearing bond loans	1 327	1 246	1 255
Other interest bearing liabilities	494	477	528
Trade and other payables	2 935	2 997	1 548
Income tax payable	2 358	2 141	1 429
Other liabilties	538	489	398
Total liabilities	17 923	17 774	13 710
Total equity and liabilties	18 599	18 500	15 911

Q1 2024 figures Q1 2024 comments

• Goodwill of NOK 2,049 million of which NOK 756 million related to Statfjord asset
• Oil & gas properties of NOK 7,130 million
• Trade and other receivables of NOK 1,932 million; increase due to liftings late in the quarter
• Cash and cash equivalents of NOK 2,130 million exceeding interest-bearing bond loans of NOK 1,327 million
• The asset retirement obligation of NOK 9,258 million is partly offset by the asset retirement reimbursement right of NOK 4,072 million
• Interest-bearing bond loans of NOK 1,327 million
• Other interest-bearing liabilities of NOK 494 million relating to financial lease of the inspire rig at Yme
• Income tax payable of NOK 2,358 million

Cash development Q1 2024

Outlook / Guidance

Production	Production guidance for 2024 of 35–40 kboepd Guidance remains unchanged • • Planned turnaround at Statfjord A with expected downtime of 5 weeks in Q2 Other major turnarounds planned: Brage – 3 weeks Q3; Ivar Aasen –3 weeks Q3 •
Capex	Capex guidance for 2024 updated to NOK 3.2–3.7 billion from NOK 2.8–3.3 billion, following FID on Bestla development project ~1/3 of capex relates to infill and production drilling at Brage and Statfjord • • In addition, capex comprises Statfjord area drilling lifetime extension program, Statfjord Øst gaslift project, Draugen Power from Shore, and other investments Capex guidance does not include capitalised interest, exploration spending or projects not yet • sanctioned
Financing	• Contemplating a new USD 125m senior secured bond to strengthen liquidity and enhance financial flexibility ahead of investments in the Bestla development Expect to increase the revolving credit facility (RCF) from USD 25m to USD 37.5m • The contemplated financing in combination with the RCF upsize provides liquidity and financial • flexibility and aligns maturity of the new bond issue with the extended cash flow profile post Bestla sanctioning

Summary

Summary

All time high production of 42.1 kboepd largely driven by Statfjord area activities included in income statement and key figures

Draugen field continues to deliver consistent production; Hasselmus is adding volumes to the asset

Ongoing work at Statfjord area to improve production

Bestla sanctioned in Q1; production start scheduled for H1 2027 with 10 kboepd peak production net to OKEA

Contemplating a USD 125 million four-year senior secured bond to strengthen liquidity and enhance financial flexibility ahead of investments in the Bestla development

Growth Value creation Capital discipline

General and disclaimer

This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. The contents of this presentation have not been independently verified, and no reliance should be placed for any purposes on the information contained in this presentation or on its completeness, accuracy or fairness.

The presentation speaks as of the date sets out on its cover, and the information herein remains subject to change.

Certain statements and information included in this presentation constitutes "forward-looking information" and relates to future events, including the Company's future performance, business prospects or opportunities. Forward-looking information is generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions and could include, but is not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration, development and production activities. Forward-looking information involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Such risks include but are not limited to operational risks (including exploration and development risks), productions costs, availability of equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. Neither the Company or any officers or employees of the Company provides any warranty or other assurance that the assumptions underlying such forward-looking information are free from errors, nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments and activities. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable law.

This presentation contains non-IFRS measures and ratios that are not required by, or presented in accordance with IFRS. These non-IFRS measures and ratios may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS. Non-IFRS measures and ratios are not measurements of our performance or liquidity under IFRS and should not be considered as alternatives to operating profit or profit from continuing operations or any other performance measures derived in accordance with IFRS or as alternatives to cash flow from operating, investing or financing activities.

The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act.

The presentation is subject to Norwegian law.