OKEA ASA

Investor Presentation • Jan 31, 2023

OKEA ASA

Presentation of fourth quarter 2022

31 January 2023

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 fourth quarter 2022 results

Highlights

Operations

• Production of 19,887¹ boepd
• Continued strong performance from Draugen, Ivar Aasen and Gjøa
• Reduced plant availability on Yme and Nova; improvements in 2023 en route

Portfolio

• Completion of transaction with Wintershall Dea and transfer of operatorship of Brage completed as scheduled on 1 November
• Hasselmus production start up expected Q4 2023; Electrification of Draugen – FID in December
• Four licences awarded in APA 2022; Brasse added to portfolio at zero cost

Financials

• Record high net profit after tax of NOK 324 million
• Yme impairment of NOK 251 million due to revised phasing of production
• Dividend payment in December of 1 NOK/share; 1 NOK/share to be paid in March

Quarterly key figures

Previous quarter in brackets

Production volumes and reliability

Production reliability (%) – last 5 quarters

Operational update

Draugen (op. WI 44.56%)

• Hasselmus gas project progressing according to plan; start up expected in Q4 23; gross plateau production 4,400 boepd
• PDOs for electrification of Draugen and Njord submitted in December

Gjøa (WI 12%)

• Gjøa Nord FID not taken; ongoing evaluations for synergies with other potential developments
• Licence near Gjøa awarded in APA 2022

Yme (WI 15%)

• 2022 production below expectation; improved production efficiency during the quarter and drilling of new wells ongoing
• Plateau production expected in mid-23 at 6,600 boepd net OKEA

Brage (op. WI 35.2%)

• Start-up issues following turnaround; mitigated in end of November
• Ongoing infield drilling to extend field lifetime
• Brasse evaluated as potential tie-back

Ivar Aasen (WI 9.2385%)

• Steady production at high reliability and availability in the quarter
• Electrification of Ivar Aasen and Edvard Grieg finalised

Nova (WI 6%)

• Challenges with water injectors partly mitigated by end of the quarter
• Side track drilling campaign in Q2 23 expected to mitigate the remaining issues

Electrification of Draugen

• Electrification is widely recognised as a key contributor to reduce emissions from the NCS; particularly CO²
• Electrification of Draugen is also key towards a lifetime extension on the field from 2035 to 2040
  • Reduces opex
  • Increases gas export
• A common electrification project for Draugen and Njord
  • FID and PDO submission in Q4 2022
  • Start-up planned Q1 2027
• Annual reductions in emissions from 2027:
  • 200 000 tonnes CO²
  • 1 250 tonnes NOx

Sketch of development solution for electrification Draugen and Njord

Straum transformer station

Wintershall Dea assets onboarded

Targeting upsides, lifetime extension, and increased production efficiency

• Ambition to extend field life on Brage by targeting upsides, discoveries in the neighborhood, and infill drilling campaigns
• Improving production reliability
• Securing portfolio diversification, higher exposure to Ivar Aasen and increased presence in the northern North Sea
• Net production increase in 2023 by ~33%; increase in 2P reserves by ~25%; increase in 2C resources by ~45%

OKEA net reserves (2P) 60 mmboe – up 29% from end-2021

OKEA net reserves (2P) and net contingent resources (2C)

Maturation

• Significant increase in Draugen reserves related to maturation of Power from Shore project (incl. lifetime extension to 2040) and the subsea pump upgrade

Revisions

• Reduction in Yme reserves mainly due to early water breakthrough in wells
• Revision at Draugen due to D-1 AH moved to contingent resources following operational limitations

Acquisitions

• 35.2% WI (op.) in Brage, 6.4615% WI in Ivar Aasen and 6% WI in Nova from Wintershall Dea; 2.223% WI in Ivar Aasen from Neptune Energy
• Significant 2C resources at Brage of 15.5 mmboe

OKEA net reserves (2P) and net contingent resources (2C) EOY 2022

mmboe	Draugen	Brage	Gjøa	Ivar Aasen	Nova	Yme	Galtvort	Aurora	Total
(2P) Reserves	31.9	3.8	4.9	5.9	5.5	8.2	-	-	60.2
resources (2C) Contingent	5.2	15.5	3.9	1.8	1.0	0.5	3.6	8.7	40.2

1) Ivar Aasen acquisition from Neptune Energy (WI=2.223%). Effective date 1 January 2022, completed on 31 March 2022. Total production from this WI in 2022 was 0.3 mmboe

2) Production from acquired Wintershall Dea assets in November and December 2022. Total production from this portfolio in 2022 was 1.8 mmboe

Additional potential for organic growth added to portfolio

Four licences awarded in APA 2022

• Two OKEA-operated licences close to Draugen and Brage
• Two non-operated licences near Gjøa and Njord

Discovery in the Calypso well

• 6-22 mmboe near Draugen

Entering the Brasse licence

• SPA signed with DNO in December for 50% WI; zero cost to OKEA
• Undertaking a fast-track, low cost review to assess whether a valueaccretive development concept can be found
• 30 mmboe recoverable volumes only 13 km from Brage

Extreme volatility in European gas markets

• Oil prices turned bearish during the last months of 2022 with recent prices around 80 USD/bbl

• Winter came late for the European gas prices as temperatures were well above the seasonal average until it got colder in the final days of November. However, temperatures rose for the Christmas holiday and prices again dropped. Due to continued mild temperatures, healthy storage levels and dampened demand, prices have stayed relatively low for the beginning of 2023.
• The earlier substantial discount of NBP (UK) compared to TTF (Netherlands) disappeared with the arrival of winter in late November and the European gas hubs are now aligned.

Financials

Oil and gas production, sales and revenues - per asset

1) Daily production from Nova, Ivar Aasen and Brage is based on November and December production divided by 92 days in the quarter. Actual daily production was 21,450 boepd.

Realised liquids prices

Gas - Market prices (NBP) and sold volumes

Sold volumes vs average NBP gas market prices

Income statement

Figures in NOK million	Q4 22	Q3 22	Q4 21	2022	2021
Total operating income	1 664	2 143	1 725	6 653	3 882
Production expenses	-522	-425	-291	-1 616	-860
Changes in over/underlift positions and inventory	222	-19	-41	297	2 3
Depreciation	-270	-176	-177	-769	-672
(-) /reversal of Impairment impairment	-251	-609	-367	-498	364
Exploration , general and adm . expenses	-277	-63	-135	-540	-438
Profit / loss (-) from operating activities	565	851	715	3 526	2 298
Net financial items	9 4	-113	-61	-311	-192
Profit / loss (-) before income tax	659	738	654	3 215	2 106
Income taxes	-335	-633	-370	-2 545	-1 503
Net profit / loss (-)	324	104	283	670	603
EBITDA	1 086	1 636	258 1	4 793	2 607

Q4 22 comments

Operating income:

• Revenue from sales of petroleum products of NOK 1 516 million
• Net gain on gas hedging of NOK 86 million

Production expenses:

• NOK 522 million or 258 NOK/boe
  • Increased absolute expense mainly due new assets
  • High cost per boe additionally driven by shutdown and production below expectations at Yme

Impairment:

• NOK 251 million impairment at Yme, mainly driven by production phasing

Exploration, general and administrative expenses:

• Seismic purchase of NOK 86 million
• Expensing of Hamlet well of NOK 79 million
• SG&A expenses of NOK 87 million; high mainly due to Brage transition expenses and annual recalculation of activities distributable to licences

Net financial items:

• Net expensed interest of NOK 23 million
• Net currency gain of NOK 115 million

Income taxes:

• Effective tax rate of 51%; low due to gain on financial items/hedging taxed at 22%

16

Statement of financial position

Figures in NOK million

Assets	31.12.2022	30.09.2022	31.12.2021
Goodwill	1 297	801	769
Oil and gas properties	6 556	4 718	4 685
Asset retirement reimbursement right	3 662	2 486	3 108
Trade and other receivables	1 744	1 347	1 053
Financial investments	0	9	210
Tax refund, current	0	0	0
Cash and cash equivalents	1 104	2 668	2 039
Other assets	1 258	539	509
Total assets	15 621	12 568	12 373
Total equity	2 078	1 857	1 709
Liabilities
Asset retirement obligations	5 915	3 621	4 237
Deferred tax liabilities	2 835	1 962	1 736
Interest bearing bond loans	1 179	1 298	2 295
Other interest bearing liabilities	508	572	493
Trade and other payables	2 220	1 193	787
Income tax payable	477	1 749	773
Other liabilties	410	317	343
Total liabilities	13 543	10 711	10 664
Total equity and liabilties	15 621	12 568	12 373

Q4 22 comments
• Goodwill of NOK 1 297 million
• Cash and cash equivalents of NOK 1 104 million
• Tax payable of NOK 477 million
• Interest-bearing bond loans of NOK 1 179 million
• Other interest-bearing liabilities of NOK 508 million related to financial lease of the Inspirer rig at Yme
• Trade and other payables of 2 220 million
• Asset retirement obligation of NOK 5,915 million partly offset by asset retirement reimbursement right of NOK 3,662 million

Cash development Q4 2022

Cash development YTD 2022

Dividends according to plan

Dividend of NOK 1.00 per share to be paid in March

• The OKEA board also reaffirms its intention to distribute NOK 1.00 per share in
  • each of the remaining quarters in 2023; in total NOK 4.00 per share intended
  • Future dividend payments in 2023 is subject to an authorisation from the general meeting and may be revised due to changes in the market environment, company situation and/or value accretive opportunities available

Outlook

Production	• Production for 2022 ended at 15,822 boepd in line with latest guiding1 Production guidance of 22,000–25,000 boepd in 2023 • • Planned turnaround at Ivar Aasen with expected downtime 1-2 weeks in Q1 • Planned turnaround at Draugen with expected downtime of 23 days in Q2
Capex	Capex for 2022 ended at NOK 1,089 million in line with guiding • • Capex guidance of NOK 1,700–2,100 million in 2023 Excludes capitalised interest and exploration capex • • Comprises completion of the Hasselmus project, Draugen power from shore, Brage infill drilling and other

Summary

Summary

Delivering on growth strategy by successfully finalising the acquisition of assets from Wintershall Dea and transferring the operatorship on Brage in line with plan

Continued solid performance at Draugen and Gjøa; Production challenges at Yme and Nova – mitigating actions progressing

Projects progressing well; Hasselmus according to plan and FID taken on electrification of Draugen

Additional potential for organic growth with the award of four licenses in APA 2022 and Brasse added to the portfolio at zero cost

Record high net profit after tax; cash dividends distributed to shareholders

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.