Vår Energi ASA

Earnings Release • Oct 12, 2023

Vår Energi: Third quarter 2023 trading update

Vår Energi: Third quarter 2023 trading update

Sandnes, Norway, 12 October 2023: Vår Energi ASA (OSE: VAR, the "Company") will

publish its financial report for the third quarter 2023 on Tuesday 24 October.

Today, the Company provides an update on production, sales volumes and other

relevant items.

Vår Energi's net production of oil, liquids and natural gas averaged 210 kboepd

in the third quarter of 2023, up 4% from the second quarter of 2023 and a

decrease of 2% compared to the third quarter of 2022. The production in the

quarter was impacted by planned seasonal maintenance and increased contribution

from new fields Bauge, Hyme and Fenja, which started production in the second

quarter. The production guidance for 2023 is 210 to 220 kboepd. The anticipated

exit production rate for the year is above 230 kboepd due to completion of

turnarounds in the third quarter and new projects coming onstream.

The production split in the third quarter was 66% oil and NGLs (liquids) and 34%

gas. Total volumes produced were 19.3 mmboe whereas volumes sold in the quarter

amounted to 19 mmboe. The underlift position is a result of cargoes slipping

into the fourth quarter. Vår Energi obtained a strong average realised price

(volume-weighted) of USD 85 per boe in the quarter. The robust sales mix of

crude oil qualities resulted in a realised crude price of USD 87 per barrel. The

realised gas price of USD 91 per boe is a result of fixed price contracts and

flexible gas sales agreements, allowing for optimisation of indices. The fixed

price contracts represented 23% of third quarter gas volumes sold at an average

price of approximately USD 190 per boe, substantially above spot market

reference price.

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Production (kboepd)¹

Crude oil 125.6 114.7 122.0 119.8 124.1

Gas 70.9 73.1 78.8 75.3 82.8

NGL 13.2 14.7 13.7 13.8 15.1

Total 209.7 202.5 214.5 208.9 222.0

Realised prices (USD/boe)

Crude oil price 87.1 78.5 107.8 83.3 107.4

Gas price 90.8 98.5 203.9 123.8 172.3

NGL price 42.5 37.5 61.8 43.2 68.5

Average (volume-weighted) 85.0 81.9 139.0 94.2 127.2

Volumes sold/lifted (mmboe)

Crude oil 11.9 10.0 10.1 32.5 33.3

Gas 5.8 6.0 6.6 18.4 20.6

NGL 1.4 1.5 1.4 3.7 4.5

Total 19.0 17.5 18.1 54.4 58.4

Total production (mmboe) 19.3 18.4 19.7 57.0 60.6

Over/(Underlift) (mmboe) (0.3) (0.9) (1.6) (2.6) (2.2)

1. Including fuel gas

Other items

Vår Energi's functional currency is NOK, whilst interest bearing loans are in

USD. The strengthening of the NOK in the third quarter of 2023 led to a net

exchange rate gain of approximately USD 40 million.

As previously communicated, the following items impacted the free cash flow in

the quarter: Cash tax payment of NOK 2.6 billion (USD ~0.26 billion) and a

dividend payment for the second quarter of USD 270 million, paid in August 2023.

The information above is based on a preliminary assessment of the Company's

third quarter 2023 financial results and may be subject to change until the

financial statements have been finally approved and published by the Company.

Third quarter webcast and conference call

Vår Energi will release its quarterly results on 24 October at 07:00 CEST. A

webcast and conference call followed by Q&A will be held at 10:00 CEST, hosted

by CEO Nick Walker and CFO Stefano Pujatti.

You can follow the webcast with supporting slides, available on:

https://events.webcast.no/vaar-energi/quarterly

-reports/EkaaxpJsr3rekrw2RRgX (https://eur06.safelinks.protection.outlook.com/?ur

l=https%3A%2F%2Fevents.webcast.no%2Fvaar-energi%2Fquarterly

-reports%2FEkaaxpJsr3rekrw2RRgX&data=05%7C01%7Cida.fjellheim%40varenergi.no%7C76b

dd8ac8c514d3c80f208dbc5882a5b%7C77da4c42ba77462bbb547f7ea57bd0a8%7C0%7C0%7C638320

960850816714%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6

Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=mT2%2B7jfg5J0uXn9s%2FOghTNaTRHUc%2Fd

HnKMA1qBXQ7Y4%3D&reserved=0)

Contact

Investor relations

Ida Marie Fjellheim, Head of Investor Relations

+47 90509291

ida.fjellheim@varenergi.no

Media relations

Andreas Wulff, Communication Manager

+47 92616759

andreas.wulff@varenergi.no

About Vår Energi

Vår Energi is a leading independent upstream oil and gas company on the

Norwegian continental shelf (NCS). We are committed to deliver a better future

through responsible value driven growth based on over 50 years of NCS

operations, a robust and diversified asset portfolio with ongoing development

projects, and a strong exploration track record. Our ambition is to be the

safest operator on the NCS, the partner of choice, an ESG leader with a tangible

plan to reduce emissions from our operations by 50% within 2030.

Vår Energi has around 1000 employees and equity stakes in 39 fields and the

company produced net 209 kboepd² in first three quarters of 2023. We have our

headquarters outside Stavanger, Norway, with offices in Oslo and Hammerfest. To

learn more, please visit varenergi.no.

This information is subject to disclosure requirements pursuant to section 5-12

of the Norwegian Securities Trading Act.

2. Excluding the Neptune acquisition