OKEA ASA

M&A Activity • Dec 29, 2023

Transaction between OKEA ASA and Equinor Energy AS completed

Transaction between OKEA ASA and Equinor Energy AS completed

(Trondheim, 29 December 2023): OKEA ASA (OKEA, OSE: OKEA) today announces

completion of the Statfjord transaction with Equinor Energy AS (Equinor).

Reference is made to the stock exchange announcement on 20 March 2023, where

OKEA announced that it had entered into an SPA with Equinor. Reference is

further made to the stock exchange announcement on 30 November 2023 where the

company informed about Equinor's RNB 2024 numbers for the Statfjord Area and

that completion of the transaction will be postponed. The RNB 2024 numbers

indicated a 10-15% reduction in volumes over the lifetime of the acquired assets

compared to RNB 2023 combined with an increase in cost. The reduction in volumes

is mainly due to production regularity and well performance and is most

significant in the near term.

As the updated projections indicate a material reduction in fair value, OKEA

expects to recognise an impairment in the range of NOK 1,100 - 1,600 million in

the financial statements for the fourth quarter of 2023. As a goodwill

impairment, the impact to the financial statements will be the same before and

after tax.

Based on the current outlook, and due to dividend restrictions in the OKEA04

bond, the board of directors does not intend to propose any dividend plan for

distribution in 2024.

As part of an agreement between OKEA and Equinor, USD 60 million of the purchase

price consideration will be deferred until end of January 2024.

"After a thorough process, we have concluded that completing the transaction

represents the best way forward for OKEA. We remain fully committed to the

continued execution of our growth strategy as a leading mid to late-life

operator on the Norwegian continental shelf and will work diligently with

Equinor and the licence partners to develop the full potential of the Statfjord

Area" says Svein J. Liknes, CEO of OKEA.

For further information, please contact: VP IR and Communication, Anca Jalba,

+47 410 87 988

About OKEA

OKEA ASA is a leading mid- to late-life operator on the Norwegian continental

shelf (NCS). OKEA finds value where others divest and has an ambitious strategy

built on growth, value creation and capital discipline.

OKEA is listed on the Oslo Stock Exchange (OSE: OKEA).

More information at www.okea.no