PA Resources

Pareto Securities’

Oil & Offshore Conference

Philippe Probst, CEO

Oslo, 5 September 2013

Disclaimer

Forward-Looking Statements

Certain information contained herein respecting the Company, the Company's properties or anticipated financial

results or performance of the Company or its properties constitutes forward-looking information. Such forward-

looking information, including but not limited to, statements with respect to anticipated rates of production, the

estimated costs and timing of the Company's planned work program and reserves determination involve many

known and unknown risks, uncertainties and other factors which may cause the actual costs and results of the

Company and its operations to be materially different from estimated costs or results expressed or implied by such

forward-looking statements. Such factors include, but are not limited to, risks related to international operations

including political risks, general risks associated with petroleum operations (such as commodity prices, production

delays, production costs, exchange rate fluctuations and environmental costs and risks) and risks associated with

equipment procurement and equipment failure. Although the Company has attempted to take into account

important factors that could cause actual costs or results to differ materially, there may be other factors that cause

costs of the Company's program or results not to be as anticipated, estimated or intended. There can be no

assurance that such statements will prove to be accurate as actual results and future events could differ materially

from those anticipated in such statements. The forward-looking statements contained herein are made as of the

date hereof and the Company undertakes no obligations to update or revise any forward-looking statements or

information, whether as a result of new information, future events or otherwise. Accordingly, readers should not

place undue reliance on forward-looking information.

2

21 oil and gas licences

7 producing fields

9 potentially commercial

discoveries

Operator of 9 licences

Attractive Asset Portfolio

KEY FACTS:

• Diversified portfolio with exploration,

development and production assets in West

Africa, North Africa and the North Sea

• Oil production in West and North Africa,

average production of 4,800 bopd in Q2 2013

• 16 mmboe in 1P reserves, 23.5 mmboe in

2P reserves and 78 mmboe in contingent

2C resources

• Offices in London, Tunis and Stockholm

• Listed on NASDAQ OMX in Stockholm

Production

Exploration & Development

3

4

Developments during first half 2013

• New Board of Directors and Management

• Initiated review of strategy, assets,

organisation and financing

• Short-term funding to be secured through

rights issue and planned new bond in

September/October

• Gunvor Group becoming major shareholder

with extensive industry expertise

• Farm-out in Tunisia signed, ongoing process

in Denmark and Congo

• Oil discovery and new field on stream in

Equatorial Guinea

Producing Assets

Q1

Tunisia: Producing Didon and DST-fields

• Onstream since 1998, 31 mmbbl oil produced to date

• Farmed out 70% and operatorship to EnQuest. Hand-over

expected in Q4 2013.

• Current gross production of some 1,400 bopd (approx.

400 bopd to PA Resources after farm-out)

• Infill well(s) and ESPs to increase production and extend

field life

• Didon FSO-vessel currently undergoing recertification

programme, field shut down until late September

Licence Group: Operator EnQuest 70%, PA Resources 30%

6

Producing Didon field

• Douleb, Semmama and Tamesmida (DST) in production

since late sixties

• Current production around 400 bopd

• Facilities located at Douleb, export via 6” pipeline to Skhira

• Licences extended to 2035. Fields being reviewed.

Licence Groups:

Douleb: PA Resources 70%, Serept 30%,

Semmama: PA Resources 70%, Serept 30%,

Tamesmida: PA Resources 95%, Serept 5%

(Operatorship outsourced to Serept)

Producing DST-fields

Douleb &

Semmama

Tamesmida

Didon

7

Congo – Azurite – The end of a sad story PA Resources 35%

• Full field development reached in 2011 with the world’s

first FDPSO

• Disappointing production performance due

to severe reservoir problems

• Remedial sidetrack failed in early 2013

• Total field recovery now estimated at <17 mmbbl,

compared with the initial plan of 40-98 mmbbl

• Plans for abandonment are well-advanced.

Expected to commence in this year

• Final lifting in H2 2013 should cover most of

PA Resources’ share of abandonment costs

• Further costs and provisions possible

Licence Group: Operator Murphy Oil 50%,

PA Resources 35%, SNPC 15%

Azurite field

8

EG – Aseng and Alen generate profitable barrels PA Resources 5.7%

• Total field production of 37 mmbo since start

in November 2011 (2+ mmbo to PA Resources)

• Initial plateau level of 50,000 bopd, increased to around

60,000 bopd

• In April 2013 the field began coming of plateau,

average production of 50,000 bopd in Q2 2013 (2,850

bopd net to PA Resources)

• Production reduced due to increased associated gas

production having reached facility’s capacity

• Investments recovered in 2012, current investments

recovered almost immediately

• Field generates good cash flow with frequent liftings

Aseng field in Bock I – PA Resources 5.7%

Licence Group Block I: Operator Noble Energy 38%, Atlas

Petroleum 27.55%, Glencore 23.75%, PA Resources 5.7%,

GEPetrol 5%

Alen field in Bock I/Block O – PA Resources 0.29%

• Production start in Q3 2013, volumes being ramped up,

full operations expected in late Q3 2013

• Alen field contribution to PA Resources modest

(~100 bopd)

• Sharing of facilities and costs with Aseng, reducing

Aseng operating costs by some USD 3 million per year

for PA Resources

Development

and Exploration Assets

Q1

• Part of the farm-out to EnQuest

• Appraised discoveries with 7 wells drilled located in the

Gulf of Gabes within access to existing infrastructure

• Total gross recoverable hydrocarbons of c. 123 mmboe

(c. 40% liquids)

Zarat:

• The largest remaining Tunisian field to be developed,

total estimated recoverable hydrocarbons of approx.

120 mmboe

• Field shared with Joint Oil Block in the North.

Unitisation process expected to be completed soon.

• Estimated development costs of USD 13-18 per boe

• First oil expected in 2017

Elyssa:

• Appraisal well planned in 2014, potential development

plan based on access to existing infrastructure

• First gas possibly in 2016

• 2 additional undeveloped discoveries with tie-back

potential to existing/planned infrastructure

• Additional prospects and leads

Zarat and Elyssa fields

Tunisia: Zarat Permit - Zarat and Elyssa Fields

Zarat Permit

BRING

MAP

10

Elyssa

Zarat Field

Tunisia: Significant onshore exploration acreage PA Resources – Jelma 70%, Makthar 100% and Jenein Centre 35%

Tunis

Sfax

4

3

1

2

Algeria Libya

Tunisia

1 Makthar Permit

Tunis

Sfax

4

3

1

2

Algeria Libya

Tunisia

Producing Asset

1

1 Jelma Permit

2

1 Douleb, Semmama

& Tamesmida

3

1 Jenein Centre Permit

4

Exploration Acreage

PA Resources onshore assets:

• Makthar and Jelma Permits surrounding

Douleb, Semmama and Tamesmida (DST)

fields

• Large exploration acreage in prospective

area (Makthar 4,052 km², Jelma 5,722

km²)

• Seismic programme in 2014 to mature

prospects and to identify deep potential in

Jelma

• Farm-out and drilling in 2014/15

• Jenein Centre:

» Discovery in Accacus play

» Importance/extend to be assessed

» Additional prospectivity,

» Commitments fulfilled for current period

(to 2015)

11

Congo – MPS: farm-out process PA Resources 85%

• Following Murphy’s withdrawal, PA Resources

obtained additional 50% working interest and

operatorship in the exploration area

• Azurite Exploitation area part of the MPS PSC

(to be relinquished after abandonment)

• Second exploration phase extended until

November 2013, allowing time to assess

exploration potential and offering a farm-out to

industry

• Data room closed early August, visited by 14

Companies. Awaiting responses

• Decision in Q3 2013 whether to enter the third

and final exploration period (with a firm well

commitment) or to relinquish

12

Licence Group: Operator PA Resources 85%, SNPC 15%

Mer Profonde Sud – exploration licence area

Mer Profonde Sud area

Azurite field

EG Block I – Successful drilling campaign underway PA Resources 5.7%

Progressing two exciting fields towards development

1. Carla North and South exploration/appraisal

» 2011 Carla North discovery in adjacent Block

O appraised in 2013 with additional oil

reservoir found

» Carla South exploration well in Block I and

its sidetrack encountered oil in two different

good quality sandstone reservoirs

» Implication of results being evaluated

2. Diega appraisal

» Appraisal well currently being drilled

» Plans to perform a long-term flow test

following the drilling of a horizontal reservoir

penetration

13

Licence Group: Operator Noble Energy 38%, Atlas Petroleum

27.55%, Glencore 23.75%, PA Resources 5.7%,

GEPetrol 5%

Block I Drilling program

Carla South

1 2

Diega

Denmark 12/06 – Two promising discoveries PA Resources Operator with 64%

• High quality Middle Jurassic reservoir proved by wells

• Mid to high case assessment of c. 25-50 mmboe gross

of contingent resources including liquids

• Technical and commercial studies continuing towards a

decision in Q1 2014 on either appraisal drilling or to move

into development Front End Engineering Design (FEED)

• Ongoing discussions with owners of infrastructure within

reach for a potential tie-back

• Discovery established 35 API oil in Miocene sandstone

at c. 900m – exceptionally light oil for such shallow depth

• Further appraisal well(s) required

• Remaining deeper potential in Chalk and Middle Jurassic

• Efforts to locate available rig for appraisal drilling continue

for a 2014 drilling campaign

• Advanced negotiations for a farm-out of 40% interest to a

reputable operator

14

Licence Group: Operator PA Resources 64%, Nordsøfonden

20%, Spyker Energy 8%, Danoil 8%

B20008-73

12/06 Broder Tuck-2

Lille John-1

Broder Tuck

Lille John

12/06 farm-out

Other North Sea assets: UK, Germany and Netherlands

15

• PA Resources operator with 100% in Bergman

(Fiddich) gas/condensate discovery

• Field discovered in 1984, flowed 15 mmscfpd

and ~1500 bcpd, studies commenced to assess

the economics of appraisal and/or development

• Initial discussions with potential candidate host

facilities to which the field could be tied back to

commence shortly

• Drill or drop decision before end of 2014

UK – Block 22/19a

• Adjancent to Danish licence 12/06

• Seismic 3D data acquired, evaluation progressing

Germany – B20008/73

• Q7-FA gas discovery offshore Netherlands

Netherlands – Block Q7, 10a and Schagen

Licence Group: PA Resources operator 100%

Licence Group: PA Resources operator 90%, Danoil 10%

Licence Groups: Operator Tulip Oil 30%,

Energie Beheer Nederland 40%, PA Resources 30%

Short-term financing (until year-end 2014)

Q1

Minimum funding requirements of SEK 1.7 billion

17

-0.8

Estimated funding need for H2 2013 and 2014 (SEK billion)

-0.8

-0.8

Assumptions for cash projection:

Minimum funding requirements Q3

2013 – Q4 2014 are based on:

• Best estimate of production

profiles

• Oil price level of USD 100

• Capex of some USD 100 million

(commitments for 2013-2014/5)

Short-term funding: Rights issue and new bond

18

• Shareholders with 17% holding/votes

committed to subscribe for pro rata share

• Remainder is underwritten by Gunvor Group,

Lorito Holdings and a Carnegie guaranteed

consortium

• Each existing share entitled to subscription for

3 new shares at SEK 10.50 per new share

• Final outcome - appr. 28% subscribed with

preferential right

• Gunvor Group, one of the leading global

energy commodities traders, new dominant

shareholder with just below 50% of the shares

and votes

• Undertakings in excess of SEK 500 million

secured from two institutional investors

• Terms for the bond undertakings similar to terms

for the current SEK bond but with a minimum

equity covenant of SEK 1,000 million instead of

SEK 2,000 million

• Waivers granted for both the NOK and SEK

bond and amendment of terms and conditions

• Bond to be issued in September/October

Fully underwritten rights issue

of SEK 890 million

New bond issue of up to

SEK 1,000 million

1 2

Way forward

Q1

Medium to long-term Outlook

20

• A comprehensive review is currently undertaken

by the board and management

• Such review is not completed and therefore the

outlook presented can be subject to changes

• The objective is to present a realistic scenario

based on reasonable, not too optimistic

assumptions

• PA Resources has a relatively large, diversified

portfolio of assets, both in terms of geography

and maturity

• The portfolio contains several assets with a high

likelihood for production in the next few years

• A number of these assets are included in the

outlook for estimating future capex and

production levels

• However, a number of assets have not been

included, providing additional production upside

in the portfolio

A first scenario based on ongoing review Diversified portfolio with assets

Outlook scenario Key assumptions

21

Didon

Field* Continuing production with one in-fill well and successful ESP installations

Zarat

Permit*

Development of the Zarat and Elyssa fields in 2015-2017

(Capex includes the drilling of two committed exploration wells)

No ETAP back-in has been assumed (ETAP back-in would reduce projected

development costs and production level proportionally)

Block I

Continuation of the current production from the Aseng and Alen fields

Development of one notional additional field in Block I (e.g. Diega) with total reserves in

Block I of 30 mmboe in 2015-2017 (given results of recent wells, such additional

development is considered likely)

Denmark

12/06**

Development of only one of the two discoveries made, with assumed total field

reserves of 32 mmboe

Tunisia

onshore

The capex profile includes USD 23 million for committed exploration expenditures

onshore Tunisia in 2014 and 2015, no success and/or farm-out assumed

* 30% Equity after farm-out. Work programme from the new operator EnQuest not yet available, may lead to changes

** PA Resources’ working interest is assumed to be 24 per cent after farm-out (appraisal wells carried)

Investment outlook: Medium to long-term

22

Capital expenditure projection (MUSD) • Total capital expenditures of approx. USD

600 million until 2017

• Majority of capital expenditures are

related to development costs

• Successful rights issue in combination

with new bond loan expected to finance

plans until year-end 2014

• Further funding required after 2014

0

50

100

150

200

250

300

2013 2014 2015 2016 2017 2018

Projected Capex 2013 H1

Production projection: Medium to long-term

23

Production profile (boe per day) • The scenario entails an average

production of approx. 15,000 – 20.000

boepd in 2018 to PA Resources

• It includes the following assets to be

developed (PA Resources’ share of

reserves)

» Zarat field (13.7 mmboe in 2P and 6

mmboe in 2C), first oil 2017

» Elyssa field (16 mmboe in 2C),

first gas 2016

» Notional field in Block I (1.7 mmbo -

Diega or Carla South), first oil 2017.

» Notional field in Danish licence 12/06

(8mmboe - Broder Tuck or Lille John),

first production 2018

0

5 000

10 000

15 000

20 000

25 000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Fields to be developed Currently producing

24

• EnQuest’s track record suggests potential increase in

Didon reserves through enhanced recovery and

extended field live

• Over-performance of one or more developments (e.g. the

notional field development in Block I may well be larger

than assumed - well results point in this direction)

• Gas developments and sales in Block I

• Success in one or more ventures currently assumed

abortive, e.g.

» Only one development assumed in the North Sea, whereas PA

R’s portfolio has four discoveries in Denmark, UK and

Netherlands

» Successful farm-out of the MPS license

» Successful farm-out of and/or development(s) in the Tunisian

on-shore assets

ADDITIONAL UPSIDE

• The presented scenario

is relatively conservative

• Tangible upside not

considered

Potential projects not included :

Outlook scenario: Upside

Q&A

Q1

Thank you!

Q1 Q3 Report on 23 October 2013