OKEA ASA — Investor Presentation 2021

Sep 8, 2021

How a small-cap E&P plays the big league gas game

Svein J. Liknes, CEO OKEA ASA

SpareBank 1 Markets Gas Market Webinar September 8th 2021

General and disclaimer

This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. The contents of this presentation have not been independently verified, and no reliance should be placed for any purposes on the information contained in this presentation or on its completeness, accuracy or fairness.

The presentation speaks as of the date sets out on its cover, and the information herein remains subject to change.

Certain statements and information included in this presentation constitutes "forward-looking information" and relates to future events, including the Company's future performance, business prospects or opportunities. Forward-looking information is generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions and could include, but is not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration, development and production activities. Forward-looking information involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Such risks include but are not limited to operational risks (including exploration and development risks), productions costs, availability of equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. Neither the Company or any officers or employees of the Company provides any warranty or other assurance that the assumptions underlying such forward-looking information are free from errors, nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments and activities. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable law.

This presentation contains non-IFRS measures and ratios that are not required by, or presented in accordance with IFRS. These non-IFRS measures and ratios may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS. Non-IFRS measures and ratios are not measurements of our performance or liquidity under IFRS and should not be considered as alternatives to operating profit or profit from continuing operations or any other performance measures derived in accordance with IFRS or as alternatives to cash flow from operating, investing or financing activities.

The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act.

The presentation is subject to Norwegian law.

OKEA – in a nutshell

• Established in 2015 with capital from the founders Ola Borten Moe, Knut Evensen, Erik Haugane, Anton Tronstad and Seacrest Capital Group
• Acquired 15% in Yme in 2016
• Acquired Shell's share in Draugen and Gjøa for NOK 4.5 billion in 2018 and became operator for the Draugen field
• Listed on OSE in June 2019
• Svein J. Liknes new CEO from 1 June 2021

210 employees

Operations office in Kristiansund and head office in Trondheim

NOK 1.55 billion market capitalisation*

OKEA Portfolio

32 licences

All on the Norwegian Continental Shelf

2P Reserves 46 mmboe – 27% gas

3 producing fields

16 147 boepd average production 2020 – 31% gas

• Draugen (44.56%) (operator)
• Gjøa (12%)
• Ivar Aasen (0.554%)

Field development

Yme New Development expected production start H2-21

Hasselmus tie-back to Draugen – first gas Q4-23

Grevling, Vette and Aurora discoveries

Oil and gas production, sales and revenues per asset

31-day planned shut-down on Gjøa in Q2-21, partly due to tie-in work Duva and Nova

Oil and gas production, sales and revenues per product

Q2 21

0

Q2 20

7 633

15 198

8 513

13 048

Oil NGL Gas

771

Q3 20 Q2 21

Q4 20 Q1 21

0

29

47

Q4 20

Q2 20 Q3 20 Q1 21

Lifted volumes and realised liquids prices versus Dated Brent – 2020/YTD-21

Sold volumes and average gas market price – 2020/YTD-21

Record high seasonal European gas prices

European gas prices to record levels

Record low European inventories – Nord Stream 2 start-up late 2021

Gjøa WI 12% – P1 and Duva/Nova tie-ins

• Two new wells in the P1 segment onstream in Q1-21
• 31 days shut down in Q2 including tie-in of Duva and Nova
• o OKEA to be compensated for deferred production from Nova and Duva production in addition to ordinary tie-in tariffs
• o Duva started production August 23rd
• Dry gas sold to Shell at prices linked to UK NBP* prices

Hasselmus first gas Q4 23 - WI 44.56% (Draugen)

Plateau production 2,000 boepd net 100% gas

Net reserves 4.8 mmboe* 100% gas

• FID on Hasselmus in Q2 21 - a subsea tie-back to Draugen – first OKEA operated field development project

• Adds 4.8 mmboe natural gas reserves net to OKEA
• First gas Q4 23 2,000 boepd net production plateau rate
• Net capex estimated at NOK 1.1 billion break-even USD 28/boe
• Will allow restart of NGL exports from Draugen

Yme WI 15% production start H2-21

Plateau production 7 500 boepd net 100% oil

Net reserves oil 9.4 mmboe* 100% oil

• The jack-up Maersk Inspirer installed at location in Q4-20
• Project in final hook-up and commissioning phase progressing as planned
• Production start expected in H2-21
• Production 7 500 boepd net to OKEA at plateau the first-year average 5 600 boepd net to OKEA
• Significant cost reductions and cash flow benefits from reorganisation operations and ownership of Maersk Inspirer

OKEA guiding on production & capex

OKEA to receive compensation for deferred volumes on Gjøa for shut-downs related to Duva/Nova tie-ins

• Gjøa accelerated compensation volumes from Duva and Nova tie-ins include 8% interest p.a.
• Deferred volumes (excl. interest) to be redelivered to Duva and Nova over remaining production period at Gjøa

How a small-cap E&P plays the big league gas game - summary

• Strong and balanced production portfolio with >30% gas production
• High quality assets with reliable production performance
• Start-up of production from P1 segment on Gjøa in February
• Duva field tied in to Gjøa with production start August 23rd OKEA will receive compensation volumes from previous shut-downs in addition to tariffs
• Hasselmus gas tie-in project to Draugen first OKEA operated project adds 4.7 mmboe net gas reserves and 2 000 boepd net plateau production and allows restart of Draugen NGL exports
• Gas more than 50% of estimated resources in OKEA exploration prospects
• Record high European natural gas prices strengthen OKEA's nearterm financial results and cash flow significantly
• Strategic review to position OKEA for next growth phase ongoing gas vs oil a key consideration in evaluating inorganic opportunities