OKEA ASA

Earnings Release • Jul 6, 2022

OKEA second quarter 2022 trading update

OKEA second quarter 2022 trading update

(Trondheim, 6 July 2022) OKEA ASA (OSE: OKEA) OKEA will publish its financial

report for the second quarter of 2022 on Wednesday 13 July. This trading update

is provided to summarise production and sales volumes and related topics and

updates for the quarter.

(Amounts in parentheses refer to previous quarter)

Second quarter 2022 production and sales

OKEA produced 16,039 (14,908) boepd in the quarter. Solid performance from

Draugen and Gjøa contributed to the production increase of 1,131 boepd compared

to previous quarter despite eight days of planned shutdown at Gjøa in April.

OKEA's working interest in Ivar Aasen also increased from 0.554% to 2.777% with

effect from 1 April. These effects were partly offset by ramp up at Yme being

slower than anticipated.

Sold volumes in the quarter amounted to 15,957 (15,444) boepd.

Market prices were volatile at high levels also in the second quarter. The

average realised liquids price was USD 100.3 (89.6) per boe* and the average

realised price for gas was USD 82.4 (189.8) per boe*.

Other operating income amounted to NOK 78 (-3) million and comprises Gjøa tariff

income of NOK 26 (24) million, income from joint utilisation of Draugen

logistical resources of NOK 12 (6) million and net gain/loss (-) from gas

forward contracts of NOK 41 (-33) million.

Unit Q2 2022 Q1 2022

Total operating income MNOK 1,332 1,513

Realised liquids price USD/boe* 100.3 89.6

Realised gas price USD/boe* 82.4 189.8

Net production Boepd 16,039 14,908

Net production - liquids Boepd 10,888 9,925

Net production - gas Boepd 5,151 4,983

Third-party volumes available for sale Boepd 849 765

Over/underlift/inventory adjustments Boepd -931 -229

Net sold volume** Boepd 15,957 15,444

Net sold volumes - liquids Boepd 9,917 9,664

Net sold volumes - gas** Boepd 6,040 5,780

Unit Q2 2022 Q1 2022

Cash and cash equivalents end of quarter MNOK 2,758 2,470

Financial investments MNOK 210 209

Net interest-bearing debt end of quarter MNOK -49 11

*             boe - barrels of oil equivalents

**          includes compensation volumes from Duva received (tie-in to Gjøa)

Financial position

At the end of the quarter, cash and cash equivalents and financial investments

amounted to NOK 2,758 (2,470) million. With a net interest-bearing debt

amounting to NOK -49 (11) million, OKEA is currently effectively net debt free.

The net interest-bearing debt amount does not include financial investments of

NOK 210 million but includes NOK 480 million in liability relating to the

financial lease of the Inspirer rig at the Yme field.

In June, OKEA distributed cash dividends of NOK 93.4 million to its shareholders

(NOK 0.90 per share).

In the quarter, OKEA also bought back additional OKEA02 bonds for a nominal

amount of USD 10.1 million including USD 9.1 million offered at a price of 103

to par value in relation to the dividend payment. The USD 9.1 million has been

reclassified to trade and other payables and will be settled on 7 July. At the

end of the quarter, OKEA had bought back OKEA02 bonds for a nominal value of USD

80.0 million at an average price just below par.

During second quarter, NOK weakened by ~14% relative to USD which increases the

NOK value of USD nominated bond loans. This effect is partly offset by an

opposite effect on USD nominated bank deposits.

Financial risk management

OKEA uses derivative financial instruments to manage exposures to fluctuations

in commodity prices. At the end of the quarter, OKEA had sold forward approx.

30% of the net after tax exposure for natural gas for Q3 22 at an average price

of 275 GBp/th, 30% for Q4 22 at an average price of 349 GBp/th, and 10% for Q1

23 at an average price of 317 GBp/th.

Updated production guiding for 2022 and outlook for 2023

As outlined in the company's first quarter financial report, the ramp-up at Yme

has progressed slower than initially anticipated. This development has continued

in the second quarter and the updated prognosis from the operator indicates that

plateau production will be pushed back from Q3 22 to YE 22 which leads OKEA to

reduce the production guiding for 2022 from 18,500 - 20,000 boepd to 16,000 -

17,000 boepd (excluding the additional volumes from the Wintershall DEA

transaction with effective date 1 January 2022). Total production level YE 22,

following completion of the transaction with Wintershall DEA, is expected to

amount to 26,500 - 28,000 boepd.

Production outlook for 2023 is expected to increase from 17,000 - 19,000 boepd

to 25,000 - 27,000 boepd. The increase is mainly due to the acquisition of

assets from Wintershall DEA, but also to an increased contribution from Yme as

plateau production is currently expected to take full effect in 2023.

Disclaimer

The information contained in this statement is based on a preliminary assessment

of the company's second quarter 2022 financial and operational results and may

be subject to change.

Second quarter 2022 financial report to be published on 13 July

OKEA ASA will release its second quarter 2022 results on Wednesday 13 July at

06:00 CEST. A presentation of the results will be held on the same day through a

webcast and audioconference starting 08:00 CEST (Link to

webcast (https://channel.royalcast.com/landingpage/hegnarmedia/20220713_1/)).

The presentation will be held by Svein J. Liknes (CEO) and Birte Norheim (CFO).

For further information, please contact:

CEO Svein J. Liknes, +47 917 67 704

CFO Birte Norheim, +47 952 93 321

About OKEA

OKEA ASA is a leading mid- to late-life operator on the Norwegian continental

shelf (NCS). OKEA finds value where others divest and has an ambitious strategy

built on growth, value creation and capital discipline.

OKEA is listed on the Oslo Stock Exchange (OSE:OKEA).

More information at okea.no