1. Bo Askvik, President & CEO Nicolas
Adlercreutz, CFO
Stockholm, 25 April 2012
First Quarter 2012
Bo Askvik, President & CEO
Nicolas Adlercreutz, CFO
Stockholm, 25 April 2012
2. Production trend and update
EG: Aseng
Average production per country/bopd • Higher target level of around 60,000 boepd
reached in early March
12 000
Congo: Azurite EG: Aseng Tunisia: Didon & Onshore • Fifth production well on stream - all wells
contributing fully
10 000
• Gas re-injection commenced
8 000 • 5-6 liftings per quarter
6 000
EG: Alen
• Delopment project on plan for production start
4 000 2013, adding significant cost synergies
2 000
CONGO: Azurite
• Marked decline in one well in February, well
0 flowing at minimal rate since
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
• Partial failure in the wells’ completion
• Technical and economic analysis of remedial
options ongoing
• One week shutdown for annual field
maintenance planned for in late May
2
3. Production and sales in 2012
Average quaterly production/bopd bopd FY 2011 Q1 2012 MAR. 2012
12 000 West Africa 5,300 6,200 5,800
10 000
8 000
North Africa 3,300 2,500 2,400
6 000
Group Total 8,600 8,700 8,200
4 000
2 000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2010 2010 2010 2011 2011 2011 2011 2012
LIFTINGS IN 2012
• 546,000 bbls from Aseng and Tunisia in Q1
Average sales price USD/bbl
140
• 520,000 bbls from Azurite on 4 April
PA Resources
119
Brent 117 113 109
120 106
120
APRIL PRODUCTION
100 85 109 106 104
80
77 79 78
97 • Average production of 8,400 bopd
60 78
72
82 during 1-23 April period
71
40
20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2010 2010 2010 2011 2011 2011 2011 2012
3
4. Significantly lower capex in 2012
Capex 2011 - 2012 KEY COMMENTS
1 800
Actual Forecasted • 2012 forecast of SEK 240-375 million
1 600
1,613
1 400 • Capex of SEK 32 million in Q1
1 200
SEK million
1 000 • Continued low investment activity
800 in 2012
600
400
200 240 - 375
0
32
2011 2012
Drilling program/Firm wells 2012-2013
Tunisia: Zarat Elyssa Q4 2012/2013 Appraisal/1
Tunisia: Makthar 2013 Exploration/1
EG: Block H Aleta Q4 2012/2013 Exploration/1
4
5. Denmark 12/06: Way forward
PA Resources 64%
Broder Tuck
• 360m+ gas and condensate column proved by wells
• High quality Middle Jurassic reservoir
• Mid to high case assessment of c. 25-50 mmboe
gross of contingent resources including liquids 12/06 Broder Tuck - 2
• 2012 work programme to progress development
planning towards commercialisation
Lille John-1
Lille John
• Wells established 35 API oil in Miocene sandstone
at c. 900m – exceptionally light oil for shallow depth B20008-73
• Obvious seismic anomaly at Miocene
• Recognition of shallow light oil re-focussed work
on developing a Miocene prospect inventory Licence Group: Operator PA Resources (64%), Danish
North Sea Fund (20%), Spyker Energy (8%), Danoil (8%)
• Likely to be remaining deeper potential – Chalk
remains and well result upgrades Middle Jurassic
• 2012 work programme to reprocess 3D to determine
prospect inventory and appraisal well location,
drilling project management tendered
5
6. Tunisia: The Zarat field
PA Resources 100%
Zarat field
Zarat field
• Large oil, gas and condensate field located offshore
Tunisia, third largest liquids field found in Tunisia
• Discussions and development planning ongoing,
PA Resources and Sonde Resources aim to
unitise field in 2012
• Work in progress revising the field’s Plan of
Development.
• Total capex and opex of 20-30 USD/developed boe
Top 10 remaining liquids fields in Tunisia
Zarat field
Licence Group: Operator PA Resouces 100%
ETAP has a back-in right of up to 55%
Zarat Ashtartenein Nord
J Hasdrubal
Adam Fields
6
7. Outlook and focus 2012
• Appraisal and development planning
of Danish discoveries towards
commercialisation
• Progressing the Zarat field and Block I
development projects
• Technical and economic analysis of
remedial options for Azurite well
• Positive cash flow and reduction of debt
7
9. Earnings and key ratios
Q1 2012 Q4 2011 FY 2011
KEY COMMENTS Q1 vs Q4
Production (bopd) 8,700 8,400 8,600
• Higher oil price and production
Oil price (USD/barrel) 120 104 103 increased revenue
• OPEX increased due to Aseng
included full quarter
Revenue (SEK million) 650 535 2 154
• EBITDA margin increased
EBITDA (SEK million) 395 306 1 295 to 60.8%
EBITDA margin 60.8% 57.2% 60.1% • Depreciation somewhat lower
and depreciation per produced
Profit before tax (SEK million) * 68 11 158 barrel reduced
Profit for the period (SEK million)* -31 -96 -326 • Financial net increased mainly
due to lower capitalized
Earnings per share (SEK) -0.05 -2.91 -3.27 interest from CAPEX
• Tax/EBITDA 25%
* Figures for 2011 exclude non-cash, one-off costs of SEK 2,035 million before tax and
SEK 1,758 million after tax.
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10. Improved cash flow
Q1 Q4 Q1 KEY COMMENTS
SEK million 2012 2011 2011 • Operating cash flow increased to
Operating cash flow 175 -106 142 SEK 175 million
of which income taxes -3 -7 -3 • Cash flow from Aseng included
paid from Jan 2012
• Minimal capex spending, mainly on
CAPEX -32 -135 -357
Aseng and Alen development in EG
Financing activities -13 36 -747 • Net cash flow of SEK 131 million
Net cash flow 131 -204 -961 • Azurite lifting on 4 April added SEK
400 million cash flow, and reduced
net debt
• PA Resources’ next planned lifting
from Azurite in early 2013
10
11. Reduced debt
Interest-bearing debt per March 2012 KEY COMMENTS
• Available credit lines Q1 amounted
Bonds to approx. SEK1.6 billion of which
31% approx. 82% utilised
Convertible bond
47% Credit facilities • Azurite lifting on 4 April added
approx. SEK 400 million cash flow
• As per 25 April net debt reduced
22%
by SEK 580 million since year end
amounting to SEK 3.4 billion
• Next bond maturity in October
Covenants and net debt 2013
25 April* Q1 2012 Q4 2011 Covenant
Book Equity (SEK million) 2,994 2,994 3,270 >2,000
Book Equity to
46% 43% 45% >40%
Capital Employed
Net debt (SEK million) 3,400 3,803 3,982 N/A
* Assuming fixed closing rate per 31 March
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