OKEA ASA

Quarterly Report • Oct 26, 2022

Presentation of third quarter 2022 OKEA ASA

26 October 2022

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 third quarter 2022 results

Highlights

Operations

• Production 16,064 boepd
• Solid production performance from Draugen, Gjøa and Ivar Aasen in the quarter; planned well maintenance at Draugen reduces volume
• Ramp up of Yme progressing slower than anticipated; six weeks of production outage in the quarter

Financials

• Record high operating income of NOK 2,143 million
• Record high EBITDA of NOK 1,636 million
• NOK 609 million impairment of Yme mainly due to reduced reserves
• Net profit of NOK 104 million
• NOK 916 million in cash flow generated to capital providers

Well-positioned for value-accretive growth

• Net cash positive; debt reduced by redemption of OKEA02 in July
• Transfer of operatorship Brage progressing according to schedule
• Dividend payment in December of 1 NOK/share; announcing intention to pay 1 NOK/share each quarter in 2023

Extreme volatility in European gas markets

Still price differential between mainland Europe and UK

• Relatively stable oil prices, but significant volatility in gas prices during the quarter

• NBP (UK) still trading at substantial discount compared to TTF (Netherlands); forward pricing indicates market expectation of convergence by winter 2022/2023
• OKEA's current gas production is exported and sold to the UK due to physical flow (Gjøa and Ivar Aasen), while Brage and Hasselmus will have the optionality to export gas to both continental Europe and UK. Nova exports through Gjøa to UK

Production volumes and reliability

Steady base performance at Draugen, Gjøa and Ivar Aasen

Production reliability (%)

Safety and emissions

Serious incident frequency (SIF) – per million work-hours* Total recordable injury frequency (TRIF) – per million work-hours

21.0

Zero hydrocarbon leaks > 0.1 kg/second last 3 years

• Net production 6,338 boepd and production reliability 94%; lower production due to planned well maintenance campaigns
• o Scale squeeze of subsea wells and wire line campaign successfully completed
• Hasselmus gas project progressing according to plan
• o Drilling of production well completed in July
• o Topside pre-fabrication and installation commenced
• o Production start planned for Q4 23 with gross plateau gas production of more than 4,400 boepd
• Power from shore project joint for Draugen and Njord
• o FEED studies and public consultation process NVE completed
• o New uplift rules in proposed state budget adversely impacts project financials; final investment decision planned in Q4 22

• Net production 7,353 boepd and production reliability 100%; solid performance resulting in increased production

• Production from tie-in project Nova commenced in July; Gjøa was compensated by 431 boepd in Q3 22 for the deferred production due to tie-in of Duva and Nova
• Work is ongoing to mature the Gjøa Nord project, including the Hamlet discovery, towards a final investment decision by end of 2022

* OKEA reserves as of 31 December 2021

• Net production 1,354 boepd; continued start-up challenges have resulted in slower than anticipated ramp up of production
• o Leakage in the piping system caused a production shutdown of six weeks in the quarter
• Water-cut from producing wells higher than expected; reducing reserves by 2 mmbbl net OKEA for the period 2022-2035
• o Some of the reduction may be possible to compensate for by infill drilling or similar measures
• Beta North drilling campaign ongoing and expected finalized in Q1 23; Gamma drilling campaign to commence in Q4 22
• o Plateau production of 6,600 boepd net to OKEA expected in H1 23

Photo: Repsol

Ivar Aasen – WI 2.777%

• Net steady production of 1,019 boepd and production availability of 98%
• An increased oil recovery (IOR) campaign to bring new wells on stream is ongoing and expected finalised in Q1 23
• OKEA WI to increase to 9.2385% following completion of Wintershall Dea transaction effective from 1 January 2022
• Power from shore to Ivar Aasen is expected start up by YE 22
• Resulting in reliable power supply and a significant drop in environmental footprint from the operations

Photo: Aker BP

Acquisition of asset portfolio from Wintershall Dea close to completion

• 35.2% operated working interest (WI) in Brage; Partner-operated 6.4615% WI in Ivar Aasen and 6.0% WI in Nova
• Further diversifies OKEA's portfolio and increasing reserves and production by ~30-40%
• Adds a new operatorship and an increased opportunity set through material increase in 2C resources
• Transfer of operatorship at Brage progressing well with expected completion on 1 November 2022
• Effective date on 1 January 2022; fully financed by existing cash

Photo: Wintershall Dea

Financials

Oil and gas production, sales and revenues - per asset

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

Realised liquids prices

Volatile liquids prices at high levels

Gas market prices and sold volumes

Continuing volatile gas prices

Income statement

Figures in NOK million	Q3 22	Q2 22	Q3 21
Total operating income	2 143	1 332	1 026
Production expenses	-425	-381	-181
Changes in over/underlift positions and inventory	-19	61	9
Depreciation	-176	-165	-179
Impairment (-) /reversal of impairment	-609	0	0
Exploration, general and adm. expenses	-63	-84	-57
Profit / loss (-) from operating activities	851	763	618
Net financial items	-113	-231	-91
Profit / loss (-) before income tax	738	532	526
Income taxes	-633	-504	-429
Net profit / loss (-)	104	28	97
EBITDA	1 636	928	797

Q3 22 comments

Operating income:

• Record high revenue mainly due to high realised gas prices in quarter

Production expenses:

• NOK 425 million or 253 NOK/boe
• o High absolute cost due to scale squeeze campaign and high prices for gas import at Draugen in addition to continued high production costs at Yme during ramp-up
• o High cost per boe additionally driven by low volumes from Yme

Impairment

• NOK 609 million impairment at Yme, mainly driven by revision in reserves

Exploration, general and administrative expenses:

• NOK 19 million exploration expense including cost for APA2022
• NOK 45 million SG&A expenses; higher than average du to Brage transition expenses

Net financial items:

• Net expensed interest of NOK 52 million
• NOK 17 million all premium due to early redemption of OKEA02
• Net FX loss of NOK 41 million, mainly due to weakened NOK to USD

Income taxes:

• Effective tax rate of 86%; high due to financial items taxed at a low tax rate

Statement of financial position

Figures in NOK million

Assets	30.09.2022	30.06.2022	31.12.2021
Goodwill	801	801	769
Oil and gas properties	4 718	5 129	4 685
Asset retirement reimbursement right	2 486	2 572	3 108
Trade and other receivables	1 347	1 060	1 053
Financial investments	9	210	210
Tax refund, current	0	0	0
Cash and cash equivalents	2 668	2 758	2 039
Other assets	539	567	509
Total assets	12 568	13 098	12 373
Total equity	1 857	1 856	1 709
Liabilities
Asset retirement obligations	3 621	3 662	4 237
Deferred tax liabilities	1 962	2 289	1 736
Interest bearing bond loans	1 298	2 182	2 295
Other interest bearing liabilities	572	527	493
Trade and other payables	1 193	943	787
Income tax payable	1 749	1 298	773
Other liabilties	317	342	343
Total liabilities	10 711	11 241	10 664
Total equity and liabilties	12 568	13 098	12 373

Q3 22 comments

• Goodwill of NOK 801 million
• Total liquidity of NOK 2 678 million o Cash and cash equivalents NOK 2 668 million o Financial investments NOK 9 million
• Trade and other receivables of NOK 1 347 million
• Tax payable NOK 1 749 million
• Interest-bearing bond loans of NOK 1 298 million; reduction due to repayment of OKEA02 in July
• Other interest-bearing liabilities of NOK 572 million related to NPV of future lease obligations for the Inspirer rig at Yme
• Asset retirement obligation of NOK 3 621 million is partly offset by asset retirement reimbursement right of NOK 2 486 million

Cash development Q3 22

Cash development YTD 22

Total liquidity = cash and cash equivalents + financial investments Cash and cash equivalents Financial investments

Production guiding impacted by Yme challenges

2022 volume range revised down by 1 kboepd; Capex and 2023 guiding kept unchanged

* For guiding purposes capex estimates do not include capitalised interest

** Increased Ivar Aasen working interest from 1 April 2022 reflected

*** Effect of Wintershall Dea transaction not included in 2022 figures, but included in 2023 figures. Expected completion in Q4 22 with effective date 1 January ^{2022 20}

Dividend payment of NOK 1.00 per share in Q4 2022

Intention to continue distributing a quarterly dividend of NOK 1.00 per share in 2023

• The OKEA board has resolved to distribute a cash dividend of NOK 103.9 million (NOK 1.00 per share) payable on or about 15 December 2022
• Cash dividends of NOK 0.90 per share were paid in June and NOK 1.00 per share were paid in September, resulting in a total dividend payment of NOK 2.90 per share in 2022
• The OKEA board has further stated an intention to distribute NOK 1.00 per share each quarter in 2023, amounting to a total of NOK 4.00 per share in 2023
• 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

Summary and outlook

Summary

Delivering on growth strategy by material acquisition from Wintershall Dea fully funded by existing cash resources

Continued solid performance at Draugen, Ivar Aasen and Gjøa

Organic projects progressing well; Hasselmus and Power from shore at Draugen according to plan

Yme ramp up slower than anticipated; reduces recoverable reserves and production guiding for 2022

Solid cash position; cash dividends distributed to shareholders and reduction of outstanding debt

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.