OKEA ASA

Earnings Release • Apr 20, 2022

OKEA first quarter 2022 trading and operational update

OKEA first quarter 2022 trading and operational update

(Trondheim, 20 April 2022) OKEA ASA (OSE: OKEA) OKEA will publish its financial

report for the first quarter of 2022 on Thursday 5 May. This trading update is

provided to summarise production and sales volumes and related topics for the

quarter including information regarding a temporary shutdown of production at

the Yme field.

(Amounts in parentheses refer to previous quarter)

First quarter 2022 production, sales and highlights

OKEA produced 14,908 (16,038) boepd in the quarter. In line with plan,

production at Gjøa was shut down from 18 March to 8 April to carry out

activities for maintenance and tie-ins. Production from the Yme field was

impacted by production interruptions from the ongoing commissioning work and

start-up of additional wells.

Sold volumes in the quarter amounted to 15,444 (18,102) boepd. There were no

liftings from Ivar Aasen in the quarter compared to a lifting equivalent to

2,453 boepd in the previous quarter. Net sold volumes from Gjøa were 841 boepd

lower than the previous quarter due to the planned shutdown.

Market prices were volatile at high levels also in the first quarter of 2022.

The average realised liquids price was USD 89.6 (78.0) per boe* which was lower

than the average market price for the month largely due to the timing of the

lifting at Draugen in January. The average realised price for gas was USD 1.12

(1.11) per scm**.

Other operating income amounted to NOK -3 (92) million and comprise Gjøa tariff

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

logistical resources of NOK 6 (13) million and net gain/loss(-) from gas forward

contracts of NOK -33 (54) million.

Due to significantly improved forward prices for oil as per the end of the

quarter, OKEA expects to recognise a reversal of previous impairments of the Yme

asset in the first quarter.

Unit Q1 2022 Q4 2021

Total operating income MNOK 1,513 1,725

Realised liquids price USD/boe* 89.6 78.0

Realised gas price USD/scm** 1.12 1.11

Net production Boepd 14,908 16,038

Net production - liquids Boepd 9,925 10,580

Net production - gas Boepd 4,983 5,458

Third-party volumes available for sale Boepd 765 419

Over/underlift/inventory adjustments Boepd -229 1,645

Net sold volume*** Boepd 15,444 18,102

Net sold volumes - liquids Boepd 9,664 11,629

Net sold volumes - gas*** Boepd 5,780 6,473

Unit Q1 2022 Q4 2021

Cash and cash equivalents end of quarter MNOK 2,470 2,039

Financial investments MNOK 209 210

Net interest-bearing debt end of quarter MNOK 11 750

*          boe - barrels of oil equivalents

**         scm- standard cubic metres

***        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 2,679 (2,249) million. Net interest-bearing debt amounted to NOK

11 (750) million, which does not include the financial investments of NOK 209

(210) million but includes the value of OKEA's share of the lease contract with

Havila for the Inspirer rig of NOK 480 million.

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

USD 31.5 million. At the end of the quarter, OKEA had bought back OKEA02 bonds

for a nominal value of USD 69.2 million at an average price of 99.2 to par, of

which USD 6.3 million has been cancelled.

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 30% of the

net after tax exposure for natural gas for Q2-22 at an average price of 278

GBp/th, 30% for Q3-22 at an average price of 275 GBp/th and 10% for Q4-22 at an

average price of 408 GBp/th.

Temporary shutdown of the Yme field

Repsol Norge AS, as operator at the Yme field, has informed the Yme license

partnership that production at the Yme field was shut in during the Easter

holidays due to technical issues. The operator is working to resolve the issues,

but it is too early to determine when production will be resumed. The duration

of the shutdown period will determine if OKEA's guiding on produced volumes for

2022 will require revision. OKEA will continue to keep the market updated on the

developments at the Yme field.

Disclaimer

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

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

subject to change.

First quarter 2022 financial report to be published on 5 May

OKEA ASA will release its first quarter 2022 results on Thursday 5 May 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. 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) with a current target production of 18,500 - 20,000 boe per day in

2022. 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