OKEA ASA

OKEA decides to halt further development of Vette discovery due to insufficient financial robustness

OKEA, as operator of the Vette licence (40% Working Interest (WI)), has

decided to propose to the licence partners not to develop the Vette

discovery further, due to the project's insufficient financial robustness. OKEA

took over operatorship of the licence earlier this year and has been maturing

the discovery towards a DG2 decision.

OKEA has also worked to improve the

economics of the Grevling/Storskrymten discoveries along with the license

partners over the last few years. Although significant reductions in break-even

cost have been achieved, it is deemed insufficient to warrant a stand-alone

field development. As OKEA was targeting a joint serial development of the Vette

discovery together with the Grevling/Storskrymten

discoveries, the decision to halt further development of Vette also implies that

OKEA is likely to halt further development of Grevling/Storskrymten.

"With the start-up of the Yme field in the second half of 2021 and energy prices

at multi-year highs, OKEA has a strong cash balance which we aim to deploy where

we can add the greatest value. We see several attractive opportunities on the

NCS with significant upside potential. Therefore, we believe there are

other investments that will provide greater near-term value creation for OKEA

and better returns to our shareholders," says OKEA CEO Svein J. Liknes.

Partners in the Vette licence (PL972), ONE-Dyas Norge AS and M Vest Energy

AS, each hold 30% WI.

OKEA is the operator of the Grevling discovery (PL038 D) with 35% WI. The other

partners are Chrysaor Norge AS (35% WI) and Petoro AS (30% WI). OKEA is also

operator of the Storskrymten discovery (PL974) (60% WI)

with licence partner Chrysaor Norge AS (40% WI).

OKEA will present a company strategy update to the market along with its

third quarter 2021 results on 28 October.

For further information, please contact:

CEO Svein J. Liknes, +47 917 67?704

CFO Birte Norheim, +47?952 93?321

VP IR Trond Omdal, +47 915 32?578

About OKEA

OKEA ASA is an independent Exploration and Production (E&P) company and operator

on the Norwegian continental shelf with a current production around

16,000?boepd. OKEA targets profitable production growth within the current

portfolio combined with an opportunistic approach to M&A.

OKEA ASA is listed on the Oslo Stock Exchange under the ticker "OKEA".

More?information?at www.okea.no.

AI Terminal