OKEA ASA — Investor Presentation 2021

Jul 14, 2021

Presentation of second quarter 2021 OKEA ASA

14 July 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 second quarter 2021 results

Highlights

Second quarter 2021 highlights

Operations

• No serious incidents at Draugen, Covid-19 situation managed
• Production 13 210 boepd

Financials

• Operating income NOK 607 million
• EBITDA NOK 311 million
• Full impairment reversal Yme NOK 730 million pre-tax
• Net profit NOK 200 million
• Cash position increased by NOK 368 million to NOK 1 346 million

Positioned for growth

• Hasselmus as first OKEA operated project first gas 2023
• Ginny exploration well operated by Equinor to be spud in Q4
• Yme start-up in H2 21 major cost and cash flow improvements from reorganising operations and ownership of Maersk Inspirer

OKEA-operated Draugen platform

Oil and gas production and production reliability

Excellent production reliability; lower production due to planned maintenance on Gjøa

• 31-days planned maintenance at Gjøa in April/May Turnaround partly due to tie-in work Duva and Nova fields
• Deferred production volumes due to tie-in work will be compensated from initial production from Duva and Nova
• Successful start-up of D2 subsea well on Draugen which had been shut-in since 2019
• Successful change-out of X-mas tree on well A6 and gas lift valve on well A1 on Draugen both back in production

Safety and emissions

No leaks, no serious incidents

2018 2019 2020

• Excellent operating performance and reliability
• FID on Hasselmus in Q2 21 a subsea tie-back to Draugen
• First gas Q4 2023 4 400 boepd gross production plateau rate
• Gross capex estimated at NOK 2.4 billion break-even USD 28/boe
• DG2 Draugen Power from shore planned in H2 21 with potential to reduce CO2-emissions by 200,000 tonnes/year
• Ambition to increase oil recovery to 70% and extend field lifetime to +2035 - a doubling of remaining reserves

• Two new wells in the P1 segment onstream in Q1 21
• 31 days shut down in Q2 including tie-in of Duva and Nova
• OKEA to be compensated for deferred production when tie-in projects Nova and Duva come onstream in addition to ordinary tiein tariffs
• Potential tie-in of the OKEA-operated Aurora discovery possible appraisal well in 2022

Yme New Development – WI 15%

Plateau production 7 500 boepd

Reserves 9.4 mmboe*

• The production 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 compared to previous estimate 4 900 boepd
• Significant cost reductions and cash flow benefits from reorganising operations and ownership of Maersk Inspirer

Financials

Oil and gas production, sales and revenues per asset

Lower production, but revenue increase due to higher market prices

0 10 20

Q2 20 Q3 20

14.4

8.0

Q4 20

Q1 21

Q2 21

0

100

^{46 82 106}

1

Q4 20

Q3 20 Q1 21

177

1 Q2 20 ^{210 242 252}

5

1

NGL 4%

71%

Oil

Q2 21

Lifted volumes and realised liquids prices versus Dated Brent

Sold volumes and average gas market price – 2020/YTD 2021

Record high seasonal European gas prices

Price data sources: Argus

Income statement

Figures in NOK million	Q2 21	Q1 21	Q2 20	H1 2021	H1 2020
Total operating income	607	524	275	1 131	825
Production expenses	-213	-176	-186	-389	-353
Changes in over/underlift positions and inventory	38	17	155	55	122
Depreciation	-144	-172	-192	-316	-374
Impairment	730	0	-298	730	-932
Exploration, general and adm. expenses	-121	-125	-34	-246	-72
Profit / loss (-) from operating activities	898	68	-280	965	-783
Net financial items	-34	-5	92	-39	-331
Profit / loss (-) before income tax	863	63	-187	926	-1 113
Income taxes	-663	-40	205	-703	347
Net profit / loss (-)	200	23	18	223	-766
EBITDA	311	240	210	551	523

Q2 21 comments

Operating income:

• Higher realised prices partly offset by lower sold volumes

Production expenses:

• NOK/boe of 159 compared to 102 in Q1 21
• Higher production expense due to D2 well intervention
• Lower produced volumes mainly due to 31 days shutdown in relation to maintenance work at Gjøa

Impairment:

• Full reversal of impairment NOK 730 million at Yme

Exploration, general and adm. expenses:

• Ilder dry exploration well expensed NOK 78 million
• Field evaluation activities mainly relating to Aurora and Grevling/Vette
• NOK 12 million in SG&A expense

Net financial items:

• Marginal weakening of NOK relative to USD resulting in net FX loss of NOK 12 million

Income taxes:

• Effective tax rate of 77%; deviation from 78% due to financial items and uplift

Statement of financial position

Figures in NOK million
------------------------	--

Assets	30.06.2021	31.03.2021	31.12.2020	30.06.2020
Goodwill	769	769	769	772
Oil and gas properties	4 558	3 807	3 758	3 859
Other non-current assets	3 069	3 049	3 029	3 011
Trade and other receivables	534	523	514	466
Tax refund, current	9	211	296	489
Cash and cash equivalents	1 346	978	871	917
Other assets	515	541	540	535
Total assets	10 800	9 878	9 776	10 049
Total equity	1 313	1 113	1 083	919
Liabilities
Asset retirement obligations	4 232	4 221	4 200	4 069
Deferred tax liabilities	1 628	999	941	1 001
Interest-bearing loans and borrowings	2 416	2 402	2 400	2 821
Trade and other payables	948	898	890	900
Income tax payable	28	14	14	146
Other liabilties	235	231	248	194
Total liabilities	9 487	8 765	8 694	9 131
Total equity and liabilties	10 800	9 878	9 776	10 049

Q2 21 comments

• Oil and gas properties NOK 4 558 million • Increase of NOK 751 million mainly due to impairment reversal Yme
• Cash and cash equivalents NOK 1,346 million
• Current tax refund NOK 9 million
• Tax payable NOK 28 million
• Interest-bearing debt of NOK 2 416 million
• Asset retirement obligation offset by non-current asset receivable from Shell

Cash development Q2 21

Cash development H1 21

* Expenditures relating to drilling of dry/non-commercial wells has in previous periods been classified under operating activities. From Q2-21 onwards, the company will classify such expenditure under investment activities. Cash flow from

previous periods are reclassified to conform to the current practice. NOK 88 million in drilling expense from Q1-21 has been reclassified from operating activities to investment activities in the YTD figures.

No change in 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

Summary and outlook

Key milestones and deliveries H2 21

• Start-up Yme in H2 stepping-up OKEA production
  • 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 reorganising operations and ownership structure of Maersk Inspirer
• Ginny exploration well operated by Equinor planned for Q4
• DG2 for Draugen Power from Shore planned for Q3
• Concept selection (DG2) for Vette and Grevling in H2
• Inorganic growth opportunities always on the agenda
• Strategic review to position OKEA for next growth phase