Panoro Energy ASA

Annual / Quarterly Financial Statement • Feb 14, 2025

Pandion Energy AS

Click to edit Master title Click to edit Master subtitle style Interim financial statements (unaudited)

Fourth quarter 2024

Disclaimer

The information given in this presentation is meant to be correct, reliable and adequate, and is compiled by Pandion Energy AS' competent team. You may use the information for your own purpose. However, if the information is found to be incomplete, inaccurate or even wrong, Pandion Energy AS is not responsible and does not cover any costs or loss occurred related to the given information.

The information contained in this presentation may include results of analyses from a quantitative model that may represent potential future events that may or may not be realised and is not a complete analysis of every material fact relating to the company or its business. This presentation may contain projections and forward-looking statements. The words "believe", "expect", "could", "may", "anticipate", "intend" and "plan" and similar expressions identify forward-looking statements. All statements other than statements of historical facts included in the presentation, including, without limitation, those regarding the Financial information, the company's financial position, potential business strategy, potential plans and potential objectives, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the company's actual results, performance, achievements and value to be materially different from any future results, performance, achievements or values expressed or implied by such forward-looking statements. Such forwardlooking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. No warranty or representation is given by the company or any of the Managers as to the reasonableness of these assumptions. Further, certain forward-looking statements are based upon assumptions of future events that may not prove to be accurate. The contents of this presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own financial, legal, business, investment and tax adviser as to financial, legal, business, investment and tax advice.

This presentation is governed by Norwegian law. Any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo District Court as exclusive legal venue.

Content

• 04 Introduction General information Accounting principles
• 06 Summary of the quarter Financial review Operational review Responsibility statement
• 11 Interim financial statements (unaudited)

Statement of income Statement of financial position Statement of cash flows

• 16 Notes to the interim financial statements Notes 1 – 15
• 33 Alternative performance measures

General information

These interim financial statements for Pandion Energy AS ("Pandion Energy" or "the company") have been prepared to comply with:

• The amended and restated reserve-based lending ("RBL") facility agreement dated 2 June 2022
• Bond terms for senior unsecured bond dated 2 June 2022

These interim financial statements have not been subject to review or audit by independent auditors.

Accounting principles

These interim financial statements have been prepared based on simplified IFRS pursuant to the Norwegian Accounting Act §3-9 and regulations regarding simplified application of IFRS issued by the Norwegian Ministry of Finance on 7 February 2022, thus the interim financial statements do not include all information required by simplified IFRS and should be read in conjunction with financial statements of the company for the period ending 31 December 2023.

The accounting policies adopted are in all aspects consistent with those followed in the preparation of the financial statements of the company for the year ending 31 December 2023, except from the change in the accounting policy for abandonment provisions made in Q1 2024. In line with the development in industry practice with regards to the interpretation of the relevant guidelines in IAS 37, the company has changed the discount rate for calculating abandonment provisions so that this no longer includes a credit element. Comparative figures have been restated accordingly. As a result, the company has recorded the difference between the remeasured abandonment provision and the historical abandonment provision on 1 January 2023 as an adjustment

to property, plant and equipment. The increased property, plant and equipment has led to an impairment charge of goodwill in the income statement in 2023.

For further detailed information on accounting principles, please refer to the financial statements for 2023.

The interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the dates and interim periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. In preparing these interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

Financial review

Revenues

In Q4 2024, the company generated total revenues of USD 59.4 million, down from USD 62.1 million in the same period last year. The decline was primarily driven by lower oil prices and a reduced volume of oil sold. However, this was partially offset by higher gas and NGL prices, as well as an increased volume of gas and NGL sold.

During Q4 2024, average realised oil price before hedging was USD 77.4 per boe, compared to USD 85.0 per boe achieved in Q4 2023. The average realised gas price in Q4 2024 was USD 81.3 per boe, an increase from USD 76.6 per boe in the same period last year. The combined average realised price for oil, gas and NGL during the quarter was USD 75.9 per boe compared to USD 83.6 per boe achieved in Q4 2023.

The volume of oil sold was 601 kboe in Q4 2024 compared to 682 kboe in Q4 2023. The volume of gas sold was 129 kboe in Q4 2024 compared to 66 kboe in Q4 2023. The total volume of oil, gas and NGL sold during the quarter was 778 kboe compared to 755 kboe in Q4 2023.

Operating expenses and financial results

In Q4 2024, the company's EBITDAX reached USD 49.2 million, a decrease from USD 57.0 million achieved in the same period last year. The lower EBITDAX can be attributed to the decreased revenues during the quarter and increased operating expenses.

Operating expenses amounted to USD 10.2 million in Q4 2024 compared to USD 5.1 million in Q4 2023. The increase is mainly related to change in value of deferral settlement which amounted to USD (5.8) million in Q4 2023.

The profit from operating activities came at USD 22.0 million, an increase from USD (0.9) million in Q4 2023. The improvement is mainly due to lower impairment, i.e. USD 14.9 million in Q4 2024 compared to USD 36.5 million in 2023. The latter was related to a change in accounting policy for abandonment provision.

Financial review

Capital expenditures

Investments in exploration and evaluation assets totalled USD 6.7 million in Q4 2024, primarily related to the commencement of drilling the PL 1119 Mistral South exploration well. In addition, investments were made in relation to the upcoming drilling activities on the Slagugle discovery and Horatio prospect in 2025, along with the evaluation of the PL 929 Ofelia discoveries toward DG1. .

Investments in fixed in Q4 2024 amounted to USD 20.8 million, incl. USD 15.4 in the Valhall and Hod fields, of which most in the PWP project. The remaining USD 5.4 million is related to Nova field and mainly start of drilling of a new water injection well.

Financial position

As of the end of Q4 2024, the company's interest-bearing debt increased by USD 0.5 million from Q3 2024, bringing the total to USD 93.5 million. The debt is comprised of a bond loan of USD 75 million and a RBL drawdown of USD 18.5 million. Overall, the company maintains its strong financial position with a leverage ratio of only 0.4x net debt/EBITDAX.

Financial risk management

In order to reduce the risk related to oil price fluctuations, the company has established an oil price hedging programme.

At the end of December 2024, 62% of the after-tax (18% of pre-tax) crude oil production volumes up to the end of 2025 had been hedged at an average floor price of 54 USD/bbl (USD 52/bbl net of costs). Additional positions may be added to the program going forward, however, the structure, amounts and levels of any further hedging will depend on how the market for commodity derivatives develops.

The company has recognised a realised loss from hedging in Q4 2024 presented as other income. The loss amounted to USD 0.2 million.

Operational review

Valhall and Hod fields Nova field

In the fourth quarter the Valhall & Hod fields operated with a high plant uptime and continued production with a very short backlog of well interventions. As result production efficiency was 94 percent and the production increased to 5.8 thousand barrels of oil equivalents per day net to Pandion Energy.

The partnership continues to identify upside potential in the area, and two new infill targets are being matured towards an investment decision in the first quarter 2025.

The Valhall PWP project progressed as planned during the fourth quarter, with fabrication and construction activities advancing at multiple sites. Modification work is ongoing at the Valhall facilities.

In the fourth quarter 2024, production from the Nova field increased to 2.3 thousand barrels of oil equivalents per day, net to Pandion Energy. Production efficiency was 99 percent.

The Nova field licence group has compensated the Gjøa licence group for deferred production due to the tie-in operations. This volume is currently being redelivered to Nova. The compensation volume in Q4 2024 was 0.4 thousand barrels of oil equivalent per day net to Pandion Energy.

The water injection system at Nova has periodically been shut in and hold back due operational constraints. This has caused some limitations on production. Mitigating initiatives are continuously being assessed.

A fourth water injector well at Nova was spudded in early December and completed in January 2025. The well has commenced injection with very good response so far. This is expected to increase field performance further.

Operational review

Exploration and evaluation activities

An exploration well on the Mistral South prospect in PL 1119 was spudded late December 2024 and completion is expected in the first quarter 2025. The PL 1109 joint venture prepared for drilling on the Horatio prospect with spud and completion expected in Q1 2025. The company holds a 20 per cent interest in both licences.

Ongoing well planning took place to facilitate the drilling process of the second appraisal well on the Slagugle discovery (PL 891), expected to spud in Q1 2025. The company holds a 20 per cent interest in the discovery.

The PL 929 joint venture is currently maturing the Ofelia discoveries towards a development decision. DG1 (BOK) was reached in December 2024. With its proximity to Gjøa, this is potentially a fast track, cost-effective and low-carbon development.

In December 2024, Pandion Energy signed an agreement with Vår Energi ASA to divest its 7.5% participating interest in PL 820S and PL 820BS with effective date 1 January 2025. The transaction is pending approval by the Ministry of Energy.

Other activities

Pandion Energy will continue to be an active and responsible partner in driving value in high quality assets on the Norwegian continental shelf. As part of this, the company actively searches for and evaluates opportunities to make value-accretive investments (e.g. through acquisitions, farm-ins, licencing rounds, swaps or other) and to divest assets to realise value created in its existing portfolio (e.g. through sale, farm-downs, swaps or other), and/or to seek business combinations that may cater for further, profitable growth.

Statement of income

Q4 2024 Restated Q4 2023 (USD`000) Note 2024 Restated 2023 59 033 63 168 Revenues 222 693 223 385 353 (1 064) Other income 818 550 59 386 62 104 Total revenues and income 1 223 511 223 935 (10 230) (5 089) Operating expenses 2 (36 206) (41 246) (23 612) (56 137) Depreciation, amortisation and net impairment losses 3,4,5 (87 492) (98 363) (3 499) (1 752) Exploration expenses 2,4 (8 291) (6 629) (37 341) (62 979) Total expenses (131 988) (146 239) 22 045 (875) Profit from operating activities 91 523 77 695 429 1 527 Interest income 1 101 2 002 (3 302) (4 228) Interest expenses (16 468) (18 996) (3 906) (1 091) Other financial expenses (9 640) (10 556) (6 779) (3 793) Net financial items 6 (25 007) (27 550) 15 266 (4 667) Profit before income tax 66 516 50 145 (20 588) (32 188) Income tax 7 (76 087) (88 009) (5 322) (36 856) Net income (loss) (9 571) (37 864) QUARTERLY FULL YEAR

Statement of financial position

Assets

(USD`000)	Note	31.12.2024	Restated 31.12.2023
Goodwill	4,5	26 638	26 638
Intangible assets	4,5	97 133	85 230
Property, plant and equipment	3,5	599 006	624 637
Prepayments and financial receivables		1	119
Right-of-use assets		1 081	775
Total non-current assets		723 858	737 398
Inventories	8	18 078	7 881
Trade and other receivables	9	58 331	39 528
Financial assets at fair value through profit or loss		-	1 507
Cash and cash equivalents		21 262	30 428
Total current assets		97 670	79 344
Total assets		821 528	816 742

Statement of financial position

Equity and liabilities

(USD`000)	Note	31.12.2024	Restated 31.12.2023
Share capital		13 591	13 591
Other paid-in capital		100 640	100 640
Other equity		(18 334)	(8 763)
Total equity	10	95 896	105 467
Deferred tax liability		334 703	293 203
Asset retirement obligations	11	200 114	216 803
Borrowings	12	75 586	106 619
Long term lease debt		797	530
Long term provision		-	2 189
Total non-current liabilities		611 201	619 344
Asset retirement obligations – short term	11	7 563	22 778
Trade, other payables and provisions	13	52 580	47 415
Borrowings – short term	12	16 941	-
Tax Payable		35 285	21 189
Financial liabilities at fair value through profit or loss		1 933	363
Short term lease debt		130	185
Total current liabilities		114 432	91 931
Total liabilities		725 632	711 275
Total equity and liabilities		821 528	816 742

Statement of cash flows

FULL YEAR

(USD`000)	Note	Q4 2024	Restated Q4 2023
Income before tax		66 516	50 145
Depreciation, amortisation and net impairment losses	3	87 492	98 436
Expensed capitalised exploration expenses	4	3 870	2 463
Accretion of asset removal liability	6,11	8 644	7 111
(Increase) decrease in value of operational financial asset		(66)	(414)
Net financial expenses	6	16 363	20 439
Interest and fees paid		(16 146)	(16 102)
(Increase) decrease in working capital		(23 905)	(14 910)
Net income tax received/(paid)		(19 168)	47 554
Net cash flow from operating activities		123 599	194 723
Payment for removal and decommissioning of oil fields	11	(20 836)	(17 421)
Investments in furniture, fixtures and office machines	3	-	(138)
Investments in oil and gas assets	3	(81 657)	(60 078)
Investments in exploration and evaluation assets	4	(15 772)	(24 355)
Net cash flow from investing activities		(118 265)	(101 992)
Proceeds from borrowings		18 000	-
Repayments of borrowings		(32 500)	(83 500)
Net cash flow from financing activities		(14 500)	(83 500)
Net change in cash and cash equivalents		(9 166)	9 231
Cash and cash equivalents at the beginning of the period		30 428	21 197
Cash and cash equivalents at the end of the period		21 262	30 428

16Notes to the interim financial statements

Note 1

Segment information and disaggregation of revenue

All revenues are generated from activities on the Norwegian continental shelf (NCS), and derives from Oil, Gas and NGL. As a result, Pandion Energy has decided not to include segment information as this would only state the same financials already presented in the income statement and balance sheet.

The company's revenue is disaggregated as follows:

	QUARTERLY		FULL YEAR
Revenues	Q4 2024	Q4 2023	2024	2023
(USD`000)
Oil	46 506	57 967	196 399	197 795
Gas	10 478	5 065	23 747	21 259
NGL	2 049	135	2 547	4 330
Total revenues	59 033	63 168	222 693	223 385
Other income	Q4 2024	Q4 2023	2024	2023
(USD`000)
Realised gain/(loss) on oil derivates	(182)	(287)	(646)	(1 016)
Unrealised gain/(loss) on oil derivates	(79)	390	(19)	423
Other*	614	(1 166)	1 482	1 143
Total other income	353	(1 064)	818	550

Note 2 Operating and exploration expenses

The company's operating and exploration expenses is disaggregated as follows:

	QUARTERLY		FULL YEAR
Operating Expenses	Q4 2024	Q4 2023	2024	2023
(USD`000)
Production cost	8 190	8 036	30 997	30 716
Tariff and transportation cost	2 686	2 191	9 326	10 593
Other cost	1 422	1 628	3 974	5 111
Operating expenses based on produced volumes	12 298	11 856	44 297	46 421
Adjustment for over/underlift ( - )	(2 684)	(1 006)	(6 037)	586
Change in value of deferral settlements	616	(5 760)	(2 055)	(5 760)
Operating expenses based on sold volumes	10 230	5 089	36 206	41 246
Total produced volumes (boe '000)	741	799	2 908	3 031
Production costs per boe produced (USD/boe )	11	10	11	10
Operating expenses per boe produced (USD/boe )	17	15	15	15
Exploration expenses	Q3 2024	Q3 2023	2024	2023
(USD`000)
Expensed cost, seismic and studies	150	-	290	140
Expensed cost, general and administrative	1 802	915	4 130	4 026
Expensed exploration expenditures previously capitalised	1 546	1 837	3 870	2 463
Total exploration expenses	3 499	1 752	8 291	6 629

Note 3 Property, plant and equipment

	Oil and gas	Tools and
(USD`000)	assets	equipment*	Total
Cost at 1 January 2023	683 257	315	683 573
Asset removal obligation - change in accounting policy**	41 751	-	41 751
Asset removal obligation - change of estimate/new provisions	45 551	-	42 932
Additions	46 363	138	46 363
Cost at 31 December 2023 (restated)	816 922	453	817 375
Accumulated depreciation and impairments 1 January 2023	(130 578)	(225)	(130 803)
Depreciation	(61 863)	(73)	(61 936)
Accumulated depreciation and impairments 31 December 2023	(192 441)	(298)	(192 739)
Carrying amount at 31 December 2023 (restated)	624 482	155	624 637
Cost at 1 January 2024	816 922	453	817 375
Additions	81 657	-	81 657
Asset removal obligation - change of estimate/new provisions	(19 713)	-	(19 713)
Cost at 31 December 2024***	878 866	453	879 319
Accumulated depreciation and impairments 1 January 2024	(192 441)	(298)	(192 739)
Depreciation	(72 592)	(83)	(72 674)
Impairment	(14 900)	-	(14 900)
Accumulated depreciation and impairments 31 December 2024	(279 932)	(380)	(280 313)
Carrying amount at 31 December 2024	598 933	73	599 006
Estimated useful lives (years)	UoP	3-10

* Depreciation of tools and equipment is allocated to development, operational and exploration activities based on registered time writing

** Reference is made to the description of change in the accounting principle for abandonment provision. Following the change in accounting principle, the comparative figures have been restated accordingly.

*** Legal ownership of incremental equipment amounting to USD 15.7m has been transferred from Nova to Gjøa

Note 4 Intangible assets

(USD`000)	Technical Goodwill	Exploration and evaluation assets	Total
Cost at 1 January 2023	124 785	114 638	239 423
Capitalised licence costs	-	24 355	24 355
Cost at 31 December 2023	124 785	138 993	263 778
Accumulated depreciation and impairments at 1 January 2023	(61 647)	(51 300)	(112 947)
Expensed exploration expenditures previously capitalised	-	(2 463)	(2 463)
Impairment - change in accounting policy *	(36 500)	-	(36 500)
Accumulated depreciation and impairments at 31 December 2023	(98 147)	(53 763)	(151 910)
Carrying amount at 31 December 2023 (restated)	26 638	85 230	111 868
Cost at 1 January 2024	124 785	138 993	263 778
Capitalised licence costs		15 772	15 772
Cost at 31 December 2024	124 785	154 765	279 550
Accumulated depreciation and impairments at 1 January 2024	(98 147)	(53 763)	(151 910)
Expensed exploration expenditures previously capitalised		(3 870)	(3 870)
Accumulated depreciation and impairments at 31 December 2024	(98 147)	(57 633)	(155 779)
Carrying amount at 31 December 2024	26 638	97 133	123 771

* Reference is made to the description of change in the accounting principle for abandonment provision. See also note 5

Note 5 Impairments

Impairment tests of individual cash-generating units are performed when impairment/reversal triggers are identified and for goodwill impairment is tested annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Prior period impairment of goodwill is not subject to reversal.

In Q4 2024, two categories of impairment tests have been performed:

• Impairment test of oil and gas assets and related intangible assets
• Impairment test of technical goodwill

When assessing whether an impairment is required on 31 December 2024, Pandion Energy has used a combination of Brent forward curve in 2025 and 2026, a mean of market participant view for 2027 to 2029 and 70.0 USD per boe in real terms from 2030 and onwards. An inflation rate of 2 per cent per annum and a discount rate of 9 per cent have been applied to calculate the future post-tax cash flows. Below is an overview of the key assumptions applied for impairment testing purposes as of 31 December 2024.

	2025	2026	2027	2028	2029	2030
Brent oil price, USD/boe, in real 2024 terms	72	71	68	72	68	70
Currency rates, USD/NOK	11,4	11,3	11,1	10,8	10,5	10,3

In Q4 2024, an impairment loss of USD 3.2 million was recognised on the Nova field. This is linked to a downward revision of the reserves. No further impairments of oil and gas assets and related intangible assets or technical goodwill were recognised in Q2 2024.

Note 6 Financial items

	QUARTERLY			FULL YEAR
(USD`000)	Q3 2024	Q4 2023	2024	2023
Interest income	429	1 527	1 101	2 002
Total interest income	429	1 527	1 101	2 002
Interest expenses	(3 244)	(3 887)	(16 030)	(17 242)
Interest on lease debt	(27)	(20)	(240)	(80)
Capitalised interest cost, development projects	126	44	247	121
Amortised loan costs	(158)	(366)	(446)	(1 795)
Total interest expenses	(3 302)	(4 228)	(16 468)	(18 996)
Net foreign exchange losses	398	(1 493)	1 299	(4 467)
Foreign exchange gains/losses on derivative financial instruments	(2 153)	2 018	(2 302)	1 143
Accretion expenses	(2 214)	(1 686)	(8 644)	(7 111)
Other financial expenses	63	69	7	(121)
Total other financial expenses	(3 906)	(1 091)	(9 640)	(10 556)
Net financial items	(6 779)	(3 793)	(25 007)	(27 550)

Note 7 Taxes

		QUARTERLY	FULL YEAR
(USD`000)	Q4 2024	Q4 2023	2024	Restated 2023
Profit before tax	15 266	(4 667)	66 516	50 145
Income tax	(20 588)	(32 188)	(76 087)	(88 009)
Effective tax rate	135%	(690 %)	114%	176%

The deviation from the statutory tax rate of 78% in Q4 2024 is primarily due to financial items with lower rate and impairment of assets without recognized deferred tax.

Note 8 Inventories

(USD`000)	31.12.2024	31.12.2023
Inventories – measured at cost	11 432	9 087
Provision for obsolete equipment	-1 387	-1 569
Underlift of petroleum products	8 033	363
Inventories	18 078	7 881

Note 9 Trade and other receivables

(USD`000)	31.12.2024	31.12.2023
Trade receivables	22 163	13 536
Accrued income from sale of petroleum products	7 966	9 387
Value deferral settlements	6 518	4 463
Other receivables, mainly balances with licence operators	21 684	12 141
Trade and other receivables	58 331	39 528

Note 10 Equity and Shareholders

		Other paid-in	Retained
(USD`000)	Share Capital	capital	earnings	Total equity
Shareholders' equity at 1 January 2023	13 591	100 640	29 103	143 333
Restated net profit (loss) for the period	-	-	(37 864)	(37 864)
Shareholders' equity at 31 December 2023 after restatement*	13 591	100 640	(8 761)	105 467
Net profit (loss) for the period	-	-	(9 571)	(9 571)
Shareholders' equity at 31 December 2024	13 591	100 640	(18 334)	95 896

* Relates to the change in principle regarding the discount rate that is used for calculating the value of the abandonment provisions, see page 5.

Share capital of NOK 9,119,212.94 comprised 911,921,294 of shares at a nominal value of NOK 0.01. Pandion Energy Holding AS owns all 911,921,294 shares at 31 December 2024.

Note 11 Asset retirement obligations (ARO)

(USD`000)

Asset retirement obligations at 1 January 2023	162 591
Effect of change in the accounting policy	41 751
Asset removal obligation - change of estimate	42 932
Incurred removal cost	(17 421)
New or increased provisions	2 618
Accretion expenses	7 111
Asset retirement obligations at 31 December 2023 (restated)	239 582
New or increased provisions	1 375
Asset removal obligation – change of estimate	(21 088)
Incurred removal cost	(20 836)
Accretion expenses	8 644
Asset retirement obligations at 31 December 2024	207 677
Non-current portion at 31 December 2024	200 114
Current portion at 31 December 2024	7 563

Reference is made to the description of the change in accounting principle for abandonment provision. Following this change, the comparative figures have been restated accordingly. The 2024 calculations assume an inflation rate of 2.0 per cent (2023 restated: 2.0%) and a nominal pre-tax (risk-free) discount rate of 4.6 per cent (2023 restated: 4.0%).

Note 12 Borrowings

Senior unsecured bond

(USD'000)	Facility currency	Utilised amount	Interest		Maturity Carrying amount
31 December 2024	USD	75 000	9.75%	June 2026	74 586
31 December 2023	USD	75 000	9.75%	June 2026	74 132

The company has a senior unsecured bond of USD 75 million with a tenor of 4 years and maturity date 3 June 2026. The bond is listed on Nordic ABM. The financial covenants are as follows:

• Leverage ratio: Net debt to EBITDAX not greater than 3.5x
• Minimum liquidity: Not less than USD 10 million

Note 12 Borrowings cont.

Reserve base lending facility agreement (RBL)

(USD'000)	Facility currency	Utilised amount	Undrawn facility*	Interest	Maturity	Carrying amount
31 December 2024	USD	18 500	181 500	SOFR + 3.5%	April 2029	16 941
31 December 2023	USD	33 000	167 000	SOFR + 3.5%	April 2029	31 486

The RBL facility is at USD 200 million with an additional uncommitted accordion option of USD 200 million. The interest rate is floating 1-6 months SOFR with 3.5% margin. In addition, a commitment fee is paid for unused credits.

The financial covenants are as follows:

• Leverage ratio: Net debt to EBITDAX not greater than 3.5x
• Minimum liquidity: Not less than USD 10 million and
• Liquidity test: 12 months test to demonstrate a 1.1:1 ratio of corporate sources to uses
• Funding test: Up to first oil for any developments to demonstrate a 1:1 ratio of corporate sources
• Exploration spending: After tax cost on a yearly basis, maximum the higher of USD 20 million or 10% of EBITDAX unless the after-tax cost is funded by permitted distribution or new equity injections

At year-end, the RBL facility is classified as current liabilities due to its final maturity date being defined as the earlier of 1 April 2029 or six months prior to the maturity date of the current bond debt (10 December 2025), unless the current bond loan is refinanced. Such refinancing will find place after the reporting period and is considered a non-adjusting event.

Note 12 Borrowings cont.

Non-current liabilities to related parties

By entering into a subscription agreement with Kerogen Investment no.28 Pandion Energy has agreed to pay a commitment fee as listed below:

	Facility currency	Loan amount
Kerogen Investment no. 28 Limited	USD	1 000

Kerogen Investments no.28 Limited's rights and claims for such a commitment fee is subordinate to the rights and claims of the RBL banks and holders of the Pandion Energy Bond.

Maturity profile on total borrowings based on contractual undiscounted cash flows

Total	94 500	109 000
1 to 5 years	76 000	109 000
Less than 12 months	18 500
(USD`000)	31.12.2024	31.12.2023

Note 13 Trade, other payables and provisions

(USD`000)	31.12.2024	31.12.2023
Trade payables	945	1 107
Share of payables in licences	36 767	23 279
Overlift of petroleum	3 271	1 637
Other non-trade payables, accrued expenses and provisions*	11 597	21 392
Trade, other payables and provisions	52 580	47 415

* Other non-trade payables include accrued public charges and indirect taxes and payroll liabilities.

Note 14 Other commitments and contingencies

The company has secondary obligation for removal cost of offshore installations related to 20% share in the divested Duva field. The obligation is estimated to approximately USD 6 million. No provision has been made for the potential obligation.

Note 15 Subsequent events

In January 2025, Pandion Energy AS was awarded three licenses in the 2024 Norwegian APA (Awards in Predefined Areas) Licensing Round on the Norwegian Continental Shelf:

• PL 006G additional acreage to the Valhall & Hod fields where Pandion Energy holds a 10 percent interest.
• PL 263H additional acreage to the Sierra & Solberg discoveries where Pandion Energy holds a 49 percent interest.
• PL 1151B located in the Greater Gjøa area in the North Sea where Pandion Energy holds several licenses. The company has been offered a 20 percent interest.

Alternative performance measures

Pandion Energy may disclose alternative performance measures as part of its financial reporting as a supplement to the interim financial statements prepared in accordance with simplified IFRS and believes that the alternative performance measures provide useful supplemental information to stakeholders.

Net debt	Gross interest-bearing debt less cash and cash equivalents and current financial investments
EBITDAX	Earnings before interest, tax, depreciation, amortization, impairment and exploration expenses
Corporate sources	Cash balance, revenues, equity and external funding
Corporate uses	Operating expenditures, capital expenditures, abandonment expenditures, general and administration costs, exploration costs, acquisition costs and financing costs