OKEA ASA

Earnings Release • Oct 28, 2020

OKEA third quarter results 2020

OKEA third quarter results 2020

OKEA third quarter results 2020

(amounts in parentheses refer to corresponding period previous year)

OKEA delivered yet another quarter with no serious incidents at the operated

asset Draugen. Despite high production reliability both at Gjøa and Draugen in

the quarter, total net production was reduced to 13,303 (18,665) boepd due to

planned shutdowns both at Draugen and Gjøa (non-operated asset). During the

quarter, OKEA completed the maintenance turnaround at Draugen which was timed to

optimise operation for the production restriction measures implemented by the

Norwegian Government earlier this year.

"Once again, I am pleased to see the strong performance at our Draugen

operations. OKEA's approach to the operatorship has resulted in high production

reliability combined with innovative project execution. The ongoing improvement

work will improve the financial performance at Draugen further and strengthen

the robustness going forward", says Erik Haugane, CEO of OKEA.

Operating income for the quarter amounted to NOK 321 (622) million. The lower

income was due to significantly lower market prices and lower sold volumes in

addition to a reduction in revenue of NOK 57 million relating to an adjustment

of estimate from second quarter. Further delay in expected start of production

and increased capex in the Repsol-operated Yme project, resulted in impairments

of NOK 572 (0) million. EBITDA for the quarter amounted to NOK 116 (404) million

and cash at the end of the quarter was NOK 883 million.

"The temporary changes to the petroleum tax legislation has been a key enabler

for reassessing our profitable projects which were put on hold earlier this

year. Our activity level is now increasing, and we see attractive organic growth

potential for OKEA within our existing portfolio without the need for additional

equity. In addition, and as demonstrated by the Aurora acquisition and the farm

-in to Calypso during the quarter, we maintain an opportunistic view on mergers

and acquisition going forward", says Mr. Haugane.

The second quarter results will be presented as a conference call by Erik

Haugane (CEO) and Birte Norheim (CFO) today at 10:00 CET in a webcast at

www.okea.no. The presentation will be followed by a Q&A session. To participate

in the conference call please use the following dial-in details:

Norway: +47 23 50 02 96

UK: +44 (0) 330 336 9411

PIN Code: 4509859

For further info please contact:

CEO, Erik Haugane, +47 907 21 655

CFO, Birte Norheim, +47 952 93 321

VP IR, Ståle Myhre, +47 917 51 878

About OKEA

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

on the NCS with a current production of ~15000 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 on www.okea.no