Vår Energi ASA

Earnings Release • Jan 31, 2024

Vår Energi completes the acquisition of Neptune Energy's Norwegian oil and gas assets

Vår Energi completes the acquisition of Neptune Energy's Norwegian oil and gas assets

Sandnes, Norway, 31 January 2024: Vår Energi ASA (OSE: VAR) ("Vår Energi" or the

"Company") has today completed the acquisition (the "Transaction") of Neptune

Energy Norge AS ("Neptune Norway") with 100% of the shares in Neptune Norway

transferred to Vår Energi.

"Vår Energi is one of the fastest growing E&P companies in the world and is on

track to nearly double production by end-2025. The acquisition of Neptune Norway

is an important step to this end. Neptune Norway's complementary assets and

highly skilled organisation are a perfect fit to Vår Energi. We will work as one

strong team, a company committed to delivering high value barrels from one of

the most attractive oil and gas regions in the world with low cost and low

emissions. The transaction is cash generative from day one supporting attractive

and predictable dividends going forward," says Nick Walker, CEO of Vår Energi.

The combined company is the second largest independent E&P company on the

Norwegian Continental Shelf (NCS) and the second largest supplier of gas from

Norway to Europe. The Transaction adds scale, diversification, and further

longevity to Vår Energi's portfolio which is targeting production of around 400

kboepd by end-2025. The completion of the Transaction, which was announced on 23

June 2023, follows fulfilment of all closing conditions including relevant

regulatory approvals.

Growth and sustained value creation

Vår Energi's growth strategy is centred around four hub areas with ownership in

a total of 203 NCS licences, including 47 producing fields, of which 7 are

operated, following the Transaction. Total combined Proved plus Probable (2P)

reserves are approximately 1.3 billion barrels of oil equivalent¹, with an

attractive early phase project portfolio and exploration opportunities

supporting sustained value creation long term. The transaction is expected to

result in significant synergies in excess of USD 300 million (post-tax) over

time, from a robust development and exploration portfolio, improved asset

utilisation and commercial optimisation of gas sales.

A highly competent and dedicated team of 1,300 employees will deliver on the

growth strategy, supported by strong safety performance and a clear path for

decarbonisation of operations, to drive long-term competitiveness and

profitability.

The effective date of the Transaction is 1 January 2023. The Transaction was

financed through available liquidity and credit facilities, and the net cash

consideration paid upon completion less cash available in Neptune Norway was

approximately USD 1.2 billion.

Integration of Neptune Norway

The acquisition will be implemented in the following stages:

· As from closing 31 January 2024, Neptune Norway will operate as a fully

owned subsidiary of Vår Energi and change the name to Vår Energi Norge AS

· From 1 May 2024, all employees of Vår Energi Norge AS will be fully

integrated into the Vår Energi ASA organisation

· The companies will as per normal practice on the NCS consolidate their

businesses, a process that is contemplated as a statutory merger planned to

complete in the second half of 2024

Overview of the acquired assets

· Ownership in 12 producing assets, three of which are operated by Neptune

Norway and seven by Equinor, further strengthening the partnership between Vår

Energi and Equinor

· Production of ~66 kboepd in 2023, 265 million barrels of oil equivalent of

2P reserves¹ and several near-term growth opportunities

· Material gas share in the portfolio amounting to 58% of production in 2023

· Ownership in the strategically important Snøhvit gas field and the

associated Melkøya LNG plant, amplifying Vår Energi's position in the Barents

Sea Area with access to a long-life asset expected to produce towards 2050 and

ownership in the only existing gas export infrastructure in the area

· Strong hub strategy alignment across the Neptune Norway portfolio with

increased presence and ownership in the Njord, Fram and Gjøa areas. Attractive

pipeline of early phase projects including Dugong, Fram Sør, Ofelia, Calypso and

numerous infrastructure-led exploration opportunities around existing hubs

Vår Energi will host a Capital Markets Update on the 13 March 2024 to give an

update on the Company's strategy for growth and value creation and plans for

delivering on the long-term goals as a combined company.

1. 2022 Annual Statement of Reserves

About Vår Energi

Vår Energi is a leading independent upstream oil and gas company on the

Norwegian continental shelf (NCS). We are committed to deliver a better future

through responsible value driven growth based on over 50 years of NCS

operations, a robust and diversified asset portfolio with ongoing development

projects, and a strong exploration track record. Our ambition is to be the

safest operator on the NCS, the partner of choice, an ESG leader with a tangible

plan to reduce emissions from our operations by 50% within 2030.

Vår Energi has around 1,300 employees and equity stakes in 47 producing fields.

We have our headquarters outside Stavanger, Norway, with offices in Oslo,

Hammerfest and Florø. To learn more, please visit varenergi.no.

Contact

Investor relations

Ida Marie Fjellheim, Head of Investor Relations

+47 90509291

ida.fjellheim@varenergi.no

Media relations

Andreas Wulff, Communication Manager

+47 92616759

andreas.wulff@varenergi.no