A New Story for PA Resources

Mark McAllister, CEO

Pareto E&P Conference

London, 13 March 2014

2

Q4 and full year 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

Dec Nov Oct Sep Aug Jul Jun May

Tunisian

Farm-Out

Congo

Farm-Out

Azurite

Field

Closure

Denmark

Farm-Out

SEK 891m

Equity

SEK 750m

Bond

An experienced Management Team

3

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

Since 2000 Gunvor has grown into one of the world’s leading energy commodity traders

In 2012 Gunvor traded 130 million tonnes of oil and ended the year with:

» a turnover > $93 billion,

» book equity > $2.2 billion

» available liquidity of $5.6 billion

As part of its growth strategy, Gunvor has invested in a number of business related to its trading

activities, including PA Resources

Apart from being our largest equity holder, Gunvor is a key stakeholder in PA through its reserve

base lending facility

The second largest PA shareholder is Lorito, a trust owned by the Lundin family, founders of

Sweden’s most successful oil company

Strong Supportive Shareholders

4

Shaping the asset portfolio

5

Take out Greenland

Production

Exploration and development

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

• Project execution – moving our assets further

• Plan of development in the coming months

Production

Appraisal

&

Development

Priority

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 (22/19-1)

Three strategic Farm-outs

6

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

Latest news – 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

7

The Atwood Hunter drill rig and

the tanker that collected the oil.

Production re-start on the Didon Field 2017

First production

2013-2017

Development 1976

Discovery

1998 First Oil

1997 Concession

2006 Platform + 2 Wells

2008-2009 4 New Wells

2005 PA Acquisition

2011 Enhancement 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

8

2014 ESP, Infill Well

Plan of development for the Zarat Field

1992 Discovery

2012 Draft POD

1995 Appraisal Well

2013 EnQuest Farm-Out

2005 PA 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

9

2014 UUOA, 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

2006/2007 Appraisal Well + ST

1992 Appraisal

Well

2010 New 3D Seismic

2013 Enquest Farm-Out

2005 PA Acquisition

10

Plan appraisal well on the Elyssa field

2015 Appraisal Well

2006 6th license round

Awarded to Scotsdale

2011 Exploration well

2008 PA acquired

Scotsdale

2012 Discovery Evaluation

Report

2013 Dana 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

11

Commercialisation of Broder Tuck

2014 Pre-Development Evaluation

2006 6th license round

Awarded to Scotsdale

2011 Exploration well

+ ST

2008 PA acquired

Scotsdale

2012 Discovery 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

12

2013 Dana Farm-out

2014 Appraisal Well

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

2014 DL-23

2010-2011 3D Seismic

2002-2004 WO & Infill Drilling

13

2014 Key activities

14

- Confirm drilling target - Submit Diega POD - Install ESP

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

- Complete unitization agreement - Review DST fields

- Submit Zarat POD - Identify enhancement opportunities

- Plan appraisal well

- Develop and submit drilling plan

- Secure rig for appraisal well

- Develop and submit drilling plan

- Drill appraisal well

- Pre-Development evaluation

- Investigate export options

Lille John

Block I

Birgitta

Didon

Tunisian OnshoreZarat field

Elyssa field

Broder Tuck

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

15

Production and sales in Q4

bopd Full year

2013

Q4

2013

Dec.

2013

West Africa 3,900 3,000 2,600

North Africa 700 600 1,000

Group Total 4,600 3,600 3,600

• ASENG: Production as forecast

• AZURITE: Production ceased and field

abandonment commenced

• TUNISIA: Production from Didon resumed in

November following the upgrade and

maintenance programme since 1 July

• PRICE: PA Resources realised price of USD 106

per barrel compared to Brent average of USD 109

Average production (bopd)

Average sales price (USD/bbl)

8,7

00

8,0

00

7,7

00

7,1

00

6,8

00

5,7

00

4,2

00

3,6

00

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013

PAR production Before Tunisian farm-out

120

109 109 106

113

103

108 106

119

108 109 110

113

102

110 109

80

90

100

110

120

130

140

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013

PA Resources Brent

Income Statement full year 2013

16

SEK million 2013

Profit for the period -1,219

One-off costs

Decommissioning costs 469

Impairments 542

Tunisian farm-out, net 117

Net exchange gains/losses -100

Profit for the period

(Adjusted) -191

KEY COMMENTS

• Impairments of:

Block 8, Greenland 97

9/06 (Gita), Denmark 90

MPS, Congo 326

Azurite, Congo 21

Block H, EG 8

totalling SEK 542 million

Cash flow

17

SEK million Q4 2013 Q3 2013 2013

Cash flow from operations -269 -13 -379

Capex -100 -74 -271

Rights issues 0 810 1,413

Loans raised 726 0 764

Amortisation of debt -791 -27 -1,182

Cash flow from financing -65 783 995

Net cash flow -434 696 345

KEY COMMENTS

• Q4 capex of SEK 100 million, mainly

related to drilling activities in Block I

in Equatorial Guinea

• Full year capex forecast of SEK 250-

380 million, outcome in the lower

part of the range

• Capex for full year 2014 are

expected to be some SEK 300

million

• Cash and cash equivalents at the

end of the period, SEK 403 million

Earnings and key ratios

18

Q4 2013 Q3 2013 2013

Production (bopd)* 3,600 4,200 4,600

Oil price (USD/barrel) 106 108 108

Revenue (SEK million) 241 293 1,312

EBITDA (SEK million)** 89 64 536

Profit before tax

(SEK million)*** -9 10 132

Profit for the period

(SEK million) -402 -501 -1,219

Earnings per share (SEK)**** -3.55 -8.53 -21.54

* Subject to the necessary approvals, PA Resources´ working interest in the Didon field in Tunisia

has been reduced from 100% to 30% through the farm-out transaction with EnQuest.

** Figures for Q3 and full year 2013 exclude non-cash, one-off costs of SEK 469 million and SEK

931 million respectively.

*** Figures for Q4, Q3 and full year 2013 exclude non-cash, one-off costs of SEK 335 million, SEK

469 million and SEK 1,473 million respectively.

**** The rights issue in September 2013 gave rise to retrospective adjustments

KEY COMMENTS Q4 vs Q3

• Revenue lower due to production

and oil price

• Fourth quarter impairment of MPS

and Block H, SEK 335 million

presented as one-off costs

Current equity and debt situation

19

KEY COMMENTS

• Equity amounted to SEK 1,795 million

• In compliance with both covenants as

per 31 December 2013

• Convertible bond SEK 94 million

amortized in January 2014

Q4

2013

Q3

2013

Q2

2013

Q1

2013

Covenants

Book Equity

(SEK million) 1,795 2,144 1,973 2,201 >1,000

Book Equity to

Capital

Employed

45% 49% 46% 48% >40%

Net debt (SEK

million) 1,792 1,422 2,197 2,111 N/A

Covenants and Net Debt development

Debt maturity per 5 February 2014 (SEK million)

0

100

200

300

400

500

600

700

800

April 2014 April 2015 March 2016

April 2016

Bond Loan 900m NOK

Bond Loan 750m SEK

Start building the

platform

• Strengthened

balance sheet

and refinancing

• New Group

Management and

Board

• Farm-outs

according to plan

A period of change – for long term success

Developed platform for future growth

• Project execution

• Based on 2013 achievements

• Closing of farm-out contracts

• Cooperation for the future: competent

local mid-sized partners with local

connections and knowledge

• Reduced level of risk and

investments

• Continued business focus on North Sea,

North Africa and West Africa

• Increased pace of exploration, appraisal

and development

• Exploration of licenses with high

potential and with nearby

infrastructure, enabling cost-effective

development

• Start reviewing value enhancing M&A

opportunities to create economies of scale

and a wider asset portfolio

Development of

growth plans

• Acquiring new

reserves and

resources where

opportunities to

enhance value

• Securing financing

of long-term

development plans

Thank you