Slide 1: Presentation of fourth quarter 2022
OKEA ASA Presentation of fourth quarter 2022 31 January 2023
Slide 2: Cautionary statement
Cautionary statement • This presentation contains forward looking information • Forward looking information is based on management assumptions and analysis • Actual experience may differ, and those differences may be material • Forward looking information is subject to significant uncertainties and
Slide 3: OKEA fourth quarter 2022 results highlights
OKEA fourth quarter 2022 results Highlights Operations • Production of 19,8871 boepd • Continued strong performance from Draugen, Ivar Aasen and Gjøa • Reduced plant availability on Yme and Nova; improvements in 2023 en route Portfolio • Completion of transaction with Wintershall Dea and transfer of
Slide 4: Quarterly key figures
Quarterly key figures Previous quarter in brackets Serious Incidents Production Net CF from Frequency boepd operations per million work hours NOK million 19,8872 1.5 (16,064) 390 (1.4) (1,183) CO2 emissions Production expense Dividends paid NOK/boe NOK million intensity kg per boe produced 258 104 (
Slide 5: Production volumes and reliability
Production volumes and reliability Production1 (boepd) 19 887 Yme 20 000 1 693 Nova Ivar Aasen 16 038 16 039 16 064 2 544 14 908 1 322 1 354 Gjøa 15 000 1 345 Brage Draugen 8 367 6 783 6 478 7 107 10 000 7 353 1 520 5 000 7 231 6 877 7 060 6 338 6 796 0 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Production relia
Slide 6: Operational update
Operational update Draugen (op. WI 44.56%) Brage (op. WI 35.2%) • Hasselmus gas project progressing • Start-up issues following turnaround; mitigated according to plan; start up expected in Q4 in end of November 23; gross plateau production 4,400 boepd • Ongoing infield drilling to extend field life
Slide 7: Electrification of Draugen
Electrification of Draugen Sketch of development solution for electrification Draugen and Njord Straum transformer station • Electrification is widely recognised as a key and new Draugen/Njord landing station contributor to reduce emissions from the NCS; particularly CO2 • Electrification of Draugen
Slide 8: Wintershall Dea assets onboarded
Wintershall Dea assets onboarded Targeting upsides, lifetime extension, and increased production efficiency Net 2P reserves and Net production 2C resources1 ~7-8 kboepd ~5.5 kboepd2 2P 31.2 13,4 mmboe 2C ~80 % oil 17,8 Nova (6%) 2022 2023 Brage (35.2%) • Ambition to extend field life on Brage by tar
Slide 9: OKEA net reserves (2P) up 29% from end-2021
OKEA net reserves (2P) 60 mmboe – up 29% from end-2021 OKEA 2P reserves development during 2022 OKEA net reserves (2P) and net contingent resources (2C) Yme Nova Ivar Aasen Gjøa Brage Draugen 65 Maturation 13.7 60.2 • Significant increase in Draugen reserves related to maturation of Power 60 -0.32 f
Slide 10: Additional potential for organic growth added to portfolio
Additional potential for organic growth added to portfolio AURORA PL1178 GJØA CALYPSO NOVA PL1180 BRASSE Four licences awarded in APA 2022 Entering the Brasse licence • Two OKEA-operated licences close to Draugen and Brage • SPA signed with DNO in December for 50% WI; zero cost to OKEA • Two non-ope
Slide 11: Extreme volatility in European gas markets
Extreme volatility in European gas markets Historical prices (Last 4 years) NBP vs TTF (Q4 2022 incl.2023 YTD) • Oil prices turned bearish during the last months of 2022 with recent prices around 80 USD/bbl • Winter came late for the European gas prices as temperatures were well above the seasonal a
Slide 12: Financials
Financials
Slide 13: Oil and gas production, sales and revenues - per asset
Oil and gas production, sales and revenues - per asset Production1 (boepd) Sold volumes (boepd) 19 887 Yme 20 000 20 000 Yme 1 693 Nova 18 102 17 264 Ivar Aasen 16 038 16 039 16 064 Ivar Aasen 2 453 15 957 16 322 Gjøa - tie ins 2 544 15 444 1 452 14 908 1 322 1 354 Gjøa 15 000 15 000 1 448 Gjøa 1 34
Slide 14: Realised liquids prices
Realised liquids prices Lifted volumes vs Dated Brent – Q4 2021/Q1 2022E Lifted volumes vs Dated brent – Q4 140 950 105 900 100 135 95.9 95.2 850 95 2.6 0.7 130 88.4 2.6 800 90 2.4 125 750 85 80 120 700 653 75 632 632 637 630 650 115 593 597 600 70 600 65 110 550 60 105 500 55 450 50 100 400 45 95 4
Slide 15: Gas - Market prices (NBP) and sold volumes
Gas - Market prices (NBP) and sold volumes Sold volumes vs average NBP gas market prices Monthly average USD/boe Volumes kboe 280 280 260 260 240 240 215 227 220 220 208 200 195 200 190 190 180 180 180 173 173 174 180 166 160 160 150 147 140 140 120 117 120 100 100 80 80 60 60 40 40 20 20 0 0 Januar
Slide 16: Income statement
Income statement Q4 22 comments Operating income: • Revenue from sales of petroleum products of NOK 1 516 million • Net gain on gas hedging of NOK 86 million Figures in NOK million Q4 22 Q3 22 Q4 21 2022 2021 Total operating income 1 664 2 143 1 725 6 653 3 882 Production expenses: Production expens
Slide 17: Statement of financial position
Statement of financial position Figures in NOK million Assets 31.12.2022 30.09.2022 31.12.2021 Goodwill 1 297 801 769 Q4 22 comments Oil and gas properties 6 556 4 718 4 685 Asset retirement reimbursement right 3 662 2 486 3 108 • Goodwill of NOK 1 297 million Trade and other receivables 1 744 1 347
Slide 18: Cash development Q4 2022
Cash development Q4 2022 NOK million 8 000 7 500 7 000 6 500 6 000 5 500 5 000 4 500 -1 479 4 000 1 201 3 500 1 591 3 000 9 2 500 1 103 2 000 9 -1 583 635 1 500 2 659 64 36 21 104 1 000 500 1 208 1 104 0 Total liquidity Operating Taxes paid Completion Investment Interest paid FX effect on Net other
Slide 19: Cash development YTD 2022
Cash development YTD 2022 NOK million 8 000 +768 7 500 7 000 2 289 6 500 6 000 210 5 500 5 000 5 633 1 405 4 500 4 000 -1 195 1 240 3 500 3 000 194 125 73 2 500 2 249 1 402 210 2 000 -935 1 500 2 807 301 1 000 2 039 1 104 500 0 Total liquidity Operating Taxes paid Investment Cash paid in Interest pa
Slide 20: Dividends according to plan
Dividends according to plan Dividend of NOK 1.00 per share to be paid in March NOK NOK NOK NOK NOK NOK NOK Capital allocation principles 0.90 1.00 1.00 1.00 1.00 1.00 1.00 /share /share /share /share /share /share /share Maintain 1 financial flexibility Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Ensu
Slide 21: Outlook
Outlook • Production for 2022 ended at 15,822 boepd in line with latest guiding1 Production • Production guidance of 22,000–25,000 boepd in 2023 • Planned turnaround at Ivar Aasen with expected downtime 1-2 weeks in Q1 • Planned turnaround at Draugen with expected downtime of 23 days in Q2 • Capex f
Slide 22: Summary
Summary ww
Slide 23: Summary
Summary Delivering on growth strategy by successfully finalising the acquisition of assets from Wintershall Dea and transferring the operatorship on Brage in line with plan Continued solid performance at Draugen and Gjøa; Production challenges at Yme and Nova – mitigating actions progressing Project
Slide 24: Q&A
Q&A Growth Value creation Capital discipline
Slide 25: General and disclaimer
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 p