OKEA ASA

Earnings Release • Jul 14, 2021

OKEA delivered net profit of NOK 200 million in the second quarter of 2021

OKEA delivered net profit of NOK 200 million in the second quarter of 2021

Operating income for the second quarter of 2021 amounted to NOK 607 million.

EBITDA was NOK 311 million, and net profit after tax was NOK 200 million.

Reversal of previous impairments relating to the Yme New Development project

amounted to NOK 730 million. Previous impairments on Yme are subsequently fully

reversed due to expected synergies from reorganising operations and ownership of

Maersk Inspirer combined with significantly improved macro conditions.

Production was 13,210 boepd in the quarter. The decrease compared to previous

quarter was mainly due to 31 days of planned maintenance at Gjøa in April/May.

Gjøa will be compensated for the deferred volumes related to tie-in work on Duva

and Nova from initial production from the two fields. Production reliability at

Draugen and Gjøa remained high, and there were no serious safety incidents in

the quarter. Sold volumes were 13,048 boepd and the average realised price for

liquids was USD 63.8 per boe and average realised gas price was USD 0.32 per

scm.

For the first half of 2021 total operating income amounted to NOK 1,131 million,

EBITDA was NOK 551 million and net profit after tax was NOK 223 million. In the

first half of 2021 OKEA's cash position increased by NOK 475 million to NOK

1,346 million. Net interest-bearing debt at the end of H1 2021 was NOK 1,070

million.

Guiding for 2021 remains unchanged. Production guiding for 2021 is 15,500-16,500

boepd and production outlook for 2022 is 17,000-18,000 boepd. Capex guiding for

2021 of NOK 600-700 million includes planned investments on the Hasselmus

project for the year. The Yme New Development project is currently in

the final hook-up and commissioning phase with expected production start in the

second half of 2021.

OKEA CEO, Svein J. Liknes, stated "I am very pleased with the solid operational

and financial results in the second quarter. Production reliability at Draugen

and Gjøa remains high and without any serious safety incidents. Oil and gas

prices have continued to strengthen, and the start-up of Yme in the second half

of the year is expected to further strengthen OKEA's production and cash flow."

There will be a webcast and audioconference starting today 10:00 CET where the

second quarter results will be presented. The presentation will be held by Svein

J. Liknes (CEO) and Birte Norheim (CFO).

The webcast can be followed

at https://channel.royalcast.com/landingpage/hegnarmedia/20210714_1/ (https://eur

01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fchannel.royalcast.com%2Fla

ndingpage%2Fhegnarmedia%2F20210714_1%2F&data=04%7C01%7Ctrond.omdal%40okea.no%7C47

cb5b86389f4f2ed18a08d94605e9b6%7Cf4d0f33e32cb4b0caafe6e0cefbc9ea9%7C0%7C0%7C63761

7813493499345%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI

6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=kkHIuK3R7jBOMEqDfCVEC2iSf3VyIBDTLCC8a%2BEtDn

M%3D&reserved=0)

Dial in details for the audioconference:

Norway: + 47 2195 6342

UK: +44 203 769 6819

PIN Code: 681934

Contact persons:

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 Oslo Stock Exchange under the ticker "OKEA".

More information

on www.okea.no (https://eur01.safelinks.protection.outlook.com/?url=http%3A%2F%2F

www.okea.no%2F&data=04%7C01%7Ctrond.omdal%40okea.no%7C47cb5b86389f4f2ed18a08d9460

5e9b6%7Cf4d0f33e32cb4b0caafe6e0cefbc9ea9%7C0%7C0%7C637617813493509304%7CUnknown%7

CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7

C1000&sdata=h4HH3eBtfO1wDnEv5yJ53cRnv8CbeLDTAUtVFb2GXA4%3D&reserved=0).