PA Resources – finding our niche

Mark McAllister, CEO

Annual General Meeting

April 2014

Today’s outline

2

Q1>> FINANCIAL HIGHLIGHTS

Full-year 2013 and Q1 2014

>> 2013 PROGRESS

Refinancing, drilling success, farm-outs

>> REFINING THE BUSINESS MODEL

Building for a sustainable future

>> 2014 PRIORITIES

Development planning, appraisal drilling

Laying the

Foundations

• Short term finance

• New leadership

• Portfolio

rationalisation

A period of change – for long term success

Building the platform

• Exploration and Appraisal drilling

• Development Plans

• Project execution

• Focus on North Sea, North & West Africa

• Licence Round applications

• Review value enhancing M&A opportunities

• Medium term finance plan

Sustainable Future

• Increased and stable

production

• Projects funded from

cash flow

Improving financial reporting

Board review of presentation format and accounting policies

Resulted in new P&L format:

» Royalty in kind and tax oil no longer included as revenue.

» lower reported revenue

» lower costs

» unchanged net result

» No change in balance sheet or cash flow

Reasons for the change:

» Better visibility of relevant costs and financial result

» Easier comparison with peer group

Previous and new presentation of P&L in line with IFRS

4

Earnings and key ratios

5

Q1 2014 Q1 2013 FY 2013 FY 2012

Revenue (SEK million) 178 359 1,049 1,856

EBITDA (SEK million) 114 211 -494 1,185

Profit before tax

(SEK million)-19 79 -1,439 -1,734

Profit for the period

(SEK million)-48 34 -1,219 -1,966

Earnings per share

(SEK)-0.43 1.57 -21.54 -1,006

COMMENTS

• REVENUE: decreased due to

lower production

• OIL PRICE: PA Resources

realised price of $108/barrel

equal to Brent average

• NET RESULT 2013 heavily

impacted of impairments and

write downs of SEK 1,127

million

5 6

00

4 8

00

4 2

00

3 6

00

3 4

00

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Production with 30% Didon Production with 100% Didon

Cash flow and investments

6

SEK million Q1 2014 Q1 2013 2013 2012

Cash flow from operations -52 -70 -379 838

Cash flow from investments -41 -58 -271 -255

Rights issue - 604 1,413 -

Loans raised - - 764 196

Amortisation of debt -94 -245 -1,182 -764

Cash flow from financing -94 359 995 -568

Net cash flow -187 231 345 15

255 271

410

50

100

150

200

250

300

2012 2013 2014

Actual Forecasted

200-250

Investments (MSEK)

Debt and equity

7

SEK million31 March

2014

31 December

2013

31 December

2012

Total assets 5,330 5,460 6,439

Cash 216 403 58

Equity 1,753 1,795 1,590

Interest bearing debt 2,123 2,194 2,688

Other liabilities 1,454 1,471 2,161

Total Equity and

liabilities5,330 5,460 6,439

COMMENTS

• CONVERTIBLE BOND: SEK 94 million

amortised in January 2014

• NEW WC FACILITY IN PLACE:

• $50 million

• Fixed rate of interest 7.5%

• Pledged assets in Tunisia

8

2013 Summary

• Strengthened balance sheet and refinancing

• Two large new owners with outstanding industry expertise

• A highly experienced management team now in place

• Portfolio rationalisation

» Strategic farm-outs bring in strong partners and reduce risk and investment

» Azurite field closed and field abandonment commenced

DecNovOctSepAugJulJunMay

Tunisian

Farm-Out

Congo

Farm-Out

Azurite

Field

Closure

Denmark

Farm-Out

SEK 891m

Equity

SEK 750m

Bond

Three strategic Farm-outs

9

MPS

Congo

Farmed out 60% to SOCO

PAR retains 25% - a

significant upside

SOCO will carry PAR share

of exploration costs

An exploration well in the

remaining license period

SOCO is an established

operator in Congo

SOCO and PA AMI for

further activity

Government approval of

transaction in early March

Zarat

Tunisia

Farmed out 70% to EnQuest

PAR retains 30% - in

production & development

$249m (gross) consideration

including carry and contingent

payments

EnQuest expert in mature field

extension and new

developments

EnQuest and PA AMI for

further acquisitions

Farmed out 40% to Dana

PAR retains 24 % - a

significant upside

$44m (gross) consideration

including appraisal and

development carry

Financial strength of KNOC

behind Dana

Dana operates nearby

licenses

Also includes German

exploration acreage

Dana joining PAR Danish 7th

Round bidding group

12/06

Denmark

Each operator is a technical and strategic fit for the respective licence.

Exploration Appraisal Production

Shaping the asset portfolio

10

Take out Greenland

Production

Exploration and development

• Core areas: North Sea, North Africa and West Africa

• Project execution – moving our assets further

• Plans of development in the coming months

Production

Appraisal

&

Development

Upside

Potential

• Tunisia Offshore: Didon

• Tunisia Onshore: DST

• Equatorial Guinea: Aseng & Alen

• Tunisia: Onshore exploration

• North Sea: Danish/German exploration

• Equatorial Guinea: Gas, exploration

• Congo: MPS exploration

• Tunisia: Zarat & Elyssa

• Equatorial Guinea: Diega

• Denmark: Broder Tuck & Lille John

• UK: Birgitta

Production

11

Take out Greenland

Production

Exploration and development

• Tunisia Offshore: Didon

• Tunisia Onshore: DST

• Equatorial Guinea: Aseng, Alen

• Closure of Azurite has reduced production

• Didon farm out reduces production short term

• Introduction of EnQuest as part of Didon

rehabiltation plans

• Aseng & Alen production on track

5 6

00

4 8

00

4 2

00

3 6

00

3 4

00

0

2 000

4 000

6 000

8 000

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Production with 30% Didon Production with 100% Didon

Preparing Didon for the long term2017

First production 2013-2017

Development1976

Discovery

1998First Oil

1997 Concession

2006Platform + 2 Wells

2008-20094 New Wells

2005PA Acquisition

2011Enhancement Study

• Produced 32 million barrels since 1998

• Platform and tanker in place

• 70 km offshore in 70m water depth

• Tanker was repaired and recertified in 2013

• EnQuest has been highly successful in

mature field rehabilitation at Thistle &

Heather

• Plan to install an Electric Submersible

Pump on one of three wells in 2014, first

ESP planned in April 2014

• Will follow up with new production well

• Further ESP installation and new wells

likely in following years

12

2014ESPs

Appraisal and Development

13

Take out Greenland

Production

Exploration and development

• Tunisia: Zarat & Elyssa

• Equatorial Guinea: Diega

• Denmark: Broder Tuck & Lille John

• UK: Birgitta (22/19-1)

• Danish appraisal costs carried by Dana

• EnQuest part carry Zarat development

• Diega will be early tie-back to Aseng

• PA has 100% Birgitta for farm-down when

development option secured

Plan of development for the Zarat Field

1992 Discovery

2012Draft POD

1995 Appraisal Well

2013EnQuest Farm-Out

2005PA Acquisition

1990 Permit Award

• Largest undeveloped discovery in Tunisia

with 120mmboe of oil and gas

• Active participation of ETAP to secure

early production and offset decline in

Tunisian gas production

• Development may need CO2

sequestration and gas recycling

• Local infrastructure can handle Zarat gas

• Commercially complex since unitisation

required with Joint Oil block

• POD using existing infrastructure in the

Gulf of Gabes is being prepared together

with ETAP, completion in mid-2014

• Unitisation and Unit Operating Agreement

in an advanced state of negotiation

14

2014UUOA, UPOD

• Another significant gas accumulation

• Four well penetrations drilled to date

with one further appraisal well

scheduled for late 2014 or early 2015

• Straightforward development if

appraisal is successful

• Commercially simple with whole field in

PAR licence

• Local infrastructure with spare capacity

• Tunisian need for gas will ensure active

ETAP support once appraisal complete

1974 Discovery

2006/2007Appraisal Well + ST

1992 Appraisal

Well

2010New 3D Seismic

2013Enquest Farm-Out

2005PA Acquisition

15

Plan appraisal well on the Elyssa field

2015Appraisal Well

Diega towards development

• Block I, Equatorial Guinea

» PAR 5.7%

» Noble Energy, operator

• Encouraging results

» Good reservoir quality, no water

» Consistent with upside case expectations

• Tie Back to the Aseng FPSO

• Development plan in 2014

• First oil in 2016

16

The Atwood Hunter drill rig and

the tanker that collected the oil.

2006 6th license round

Awarded to Scotsdale

2011Exploration well

2008 PA acquired

Scotsdale

2012Discovery Evaluation

Report

2013Dana Farm-out

• Gas field discovered by PA in 2011

• Estimated recovery 15-45 mmboe

• In shallow water and adjacent to

existing infrastructure

• Concept screening underway

• Good progress in discussions with

nearby host platform and an alternative

host is under active review

• Decision in 2014 on preferred

development concept or further

appraisal drilling

17

Commercialisation of Broder Tuck

2014Pre-Development Evaluation

2006 6th license round

Awarded to Scotsdale

2011Exploration well

+ ST

2008 PA acquired

Scotsdale

2012Discovery Evaluation

Report

Appraisal drilling at Lille John

• Oil field discovered by PA in 2011

• Estimated recovery ranges from

uneconomic up to 60mmstb

• Appraisal well required to confirm size of

structure and reservoir model

• Appraisal well planned in late 2014 and a

drilling rig has been secured

• Straightforward tieback to existing

infrastructure for oil export to Danish

mainland

• Will pursue this trend together with Dana in

Denmark and Germany

18

2013Dana Farm-out

2014Appraisal Well

Exploration

19

Take out Greenland

Production

Exploration and development

• Tunisia: Onshore permits

• North Sea: German block, Danish/UK rounds

• Equatorial Guinea: Block I potential

• Congo: MPS prospect

• Seismic planned for Tunisia

• Bid groups in place for Denmark/UK

• MPS drilling plans advancing

Identify drilling target at Mer Profonde Sud

• Abandonment on Azurite field

continues and is presently around

80% complete

• Murphy exited from remaining MPS

exploration licence

• MPS is a prospective exploration

block adjacent to and along trend from

several large fields

• Encouraging reprocessed 3D seismic

was basis for PA re-evaluation and

farm-out to SOCO

• Once transaction complete, plan to

drill RR prospect in 2014/2015

• Government approval of transaction in

early March, subject to regulatory

approval to enter into the third and

final period of the licence

2014DL-23

2010-20113D Seismic

2002-2004WO & Infill Drilling

20

Value Cycle

21

Low Cost

Access

Work Up

Value

Farm Down

Appraise and

Develop

Cash from

ProductionCore Skills:

• Subsurface Excellence

• Financial Management

• Commercial Acumen

Core Areas:

• North Sea,

• North Africa

• West Africa

Develop Current

Portfolio

M&A

Organic

Growth

Top

Team

Strong

Owners

Right

Operators

Development Planning

Maximise Asset Value

How we deliver value

Good

Assets

An experienced Management Team

23

Tomas Hedström

CFO

Stockholm

Kevin McGrory

General Counsel

London

Graham Goffey

SVP Exploration

MD West Africa

and North Sea

London

Paul Elstone

MD Tunisia

Tunis

Slimane Bouabbane

VP Business

Development

Stockholm

Mark McAllister

CEO

London

2014 Key activities

24

- Confirm drilling target - Submit Diega POD - Install ESP

- Secure rig for exploration well - Commence development - Install additional ESP or drill well

- Plan seismic programme - Complete unitization agreement - Review DST fields

- Execute seismic programme - Submit Zarat POD - Identify enhancement opportunities

- Apply in UK 28 round - Plan appraisal well

- Apply in Danish 7 round - Develop and submit drilling plan

- Secure rig for appraisal well

- Develop and submit drilling plan

- Drill appraisal well

- Pre-Development evaluation

- Investigate export options

Production

Closing of 12/06 farm-out to Dana Closing of Tunisian farm-out to EnQuest

Exploration

MPS

Appraisal/Development

Closing of MPS farm-out to SOCO

Didon

Tunisian OnshoreZarat field

Elyssa field

Broder Tuck

Tunisia onshore

North Sea

Lille John

Block I

Birgitta

Laying the

Foundations

• Short term finance

• New leadership

• Portfolio

rationalisation

A period of change – for long term success

Building the platform

• Exploration and Appraisal drilling

• Development Plans

• Project execution

• Focus on North Sea, North & West Africa

• Licence Round applications

• Review value enhancing M&A opportunities

• Medium term finance plan

Sustainable Future

• Increased and stable

production

• Projects funded from

cash flow

Thank you