The document provides an operational and financial update for PA Resources for the third quarter of 2013. It introduces the new CEO, Mark McAllister, and provides an operational update on key assets. Financially, it discusses Q3 earnings, cash flow, and the strengthened balance sheet following a rights issue. It outlines PA Resources' new strategic plan to develop key discovered assets and increase production to 15,000-20,000 boepd by 2018 through a $600 million capital expenditure program over 2014-2017. The strategic review process aims to realize asset values, reduce exposure through farm-outs, define portfolio upside, and put refinancing in place to complete field developments.

1. Third Quarter 2013
Mark McAllister, CEO
Tomas Hedström, CFO
Stockholm, 23 October 2013

2. Today’s topics
>> NEW CEO
Short introduction to Mark McAllister
>> OPERATIONAL UPDATE
Recent developments
Q3
>> FINANCIAL HIGHLIGHTS
Earnings, key ratios and one-offs
>> PA RESOURCES’ WAY FORWARD
Follow up on strategic review and outlook
2

3. Mark McAllister New CEO since 1 October
•
•
Joined the oil industry in 1979 with Conoco
•
Worked for Operators in the North Sea, FSU and
North Africa
•
Held senior management positions at Monument
Exploration and LASMO plc, two of the most
successful UK Independents
•
Founded and ran two new UK Independents,
Acorn Oil & Gas and Fairfield Energy
•
These companies have played a significant role in
the rationalisation of the mature North Sea
•
Was Chairman of OSPRAG, the joint industrygovernment body formed as a North Sea response
to the Macondo blow-out
•
3
Petroleum Engineer with Engineering MA from
Cambridge University
Awarded Honorary Doctorate from Robert Gordons
University in Aberdeen for services to the North
Sea oil industry

4. Q3 summary Strengthened balance sheet
Q3 HIGHLIGHTS
•
•
Main owner Gunvor Group now holds ~50%
•
Advanced 12/06 farm-out negotiations and
MPS farm-out discussions in progress
•
Maintenance and upgrade shut-in of Didon
field extended until early November
•
Alen production start, gas volumes slowly
increased
•
4
Strengthened balance sheet through
completed rights issue and bond issue
Diega appraisal programme underway

5. Operational update
Q1

6. West Africa: MPS farm-out and Azurite abandonment
Azurite field (35% interest)
• Early abandonment to commence in Q4 2013
• Final lifting expected in Q4 2013 to mainly cover
PA Resources’ share of regular abandonment cash
costs
• One-off decommissioning costs of SEK 469 million
reported in Q3, costs relating to the FDPSO vessel
and Murphy’s Congo office
Mer Profonde Sud (85% interest)
• Farm-out data room process attracted considerable
interest
• PA Resources in the process of finalising agreement
to divest majority stake and operatorship
• Farm-out subject to government approval, prior to
enter third and final renewal period in November
2013 incurring one firm well commitment
• If third period not entered, licence to be relinquished
giving rise to impairment of current book value
(approx. SEK 800 million)
6

7. EG Block I – Diega appraisal programme underway
PA Resources 5.7%
Block I Drilling program - targeting next developments
1. Carla North and South exploration/appraisal
•
•
•
2011 discovery in adjacent Block O (’Carla
North’) 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
Carla South
1
Diega
2
2. Diega appraisal
•
•
•
•
7
Pilot how drilled and logged in Q3 followed
by a horizontal sidetrack
Diega oil production test being performed
Possible further drilling in 2014 and nearterm submission of plan of development
Advanced discussion on initial allocation of
Diega field (between Block O and Block I)
Licence Group: Operator Noble Energy (38%), Atlas Petroleum
(27.55%), Glencore Xstrata (23.75%), PA Resources (5.7%),
GEPetrol (5%)

8. North Africa – Didon shut-in and farm-out process
Didon field (30% interest)
• Production shut in since 1 July
• FSO-vessel undergoing a comprehensive recertification and upgrade work programme conducted in
Palumbo Dry Dock in Malta
• Extensive shut down maintenance programme on
production platform and production riser change out
• Production restart is now re-scheduled to early
November
• Production shortfall expected to be partly compensated by higher production when field is back on
stream
• Vessel prepared for field life extension programme
Farm-out process
• Agreement to farm-out 70% and operatorship of
Tunisian offshore assets to EnQuest signed in May
2013
• Notification and approval process has commenced,
delayed due to political situation in Tunisia
• Transaction completion not expected before Q1 2014
8

9. North Sea – Advanced 12/06 negotiations
12/06 (64% interest)
• Rig discussions continue for 2014/2015 drilling, with
Lille John appraisal as priority
• Studies continue of development options for Broder
Tuck field, towards decision in H1 2014
• PA Resources currently finalising negotiations
regarding a farm-out of 40% interest in the licence,
reducing the interest from 64% to 24%
Gita evaluation (26.8% interest)
• Operator received regulatory approval for continued
evaluation of remaining prospectivity until Q2 2014,
Northern portion of licence to be relinquished
UKCS Block 22/19a (100% interest)
• PA Resources operator of the Bergman (formerly
Fiddich) gas/condensate discovery from 1984
• Initial discussion with potential candidate host
facilities to assess scope for tie-back to nearby
infrastructure
9

10. Gunvor Group and Lorito – New main owners
•
Gunvor Group is a leading global energy
commodities trader with a turnover of more than
USD 93 billion, book equity in excess of USD
2.2 billion and USD 5.6 billion in available
liquidity at year end 2012
•
Mainly owned by Mr Guennadi Timtchenko and
Mr Torbjörn Törnqvist
•
Year end 2012, Gunvor Group had USD 461
million in investments in associates and joint
ventures
•
10
Gunvor Group also has USD 84 million
outstanding to PA Resources through an RBL
(reserve based loan)
• Following the equity issue, Gunvor
owns 49.96% of PA Resources after
invested c. SEK 550 million in new
equity
• Lorito Holdings Ltd (Lundin familyowned trust) owns 9.69% after
investing c. SEK 120 million in the
rights issue
• Both Gunvor Group and Lorito
Holdings are financially strong owners
with significant experience from the oil
and gas industry and related
businesses

11. Largest shareholders and Nomination Committee
Largest shareholders per 30 Sep. 2013
Capital/
votes
NOMINATION COMMITTEE 2014
GUNVOR GROUP LTD
49.96%
• Dirk Jonker (Gunvor Group)
LORITO HOLDINGS LTD
9.69%
• Garrett Soden (Lorito Holdings)
CREDIT AGRICOLE (SUISSE) SA
3.84%
• Göran Ågerup (Ågerup Fastigheter)
AVANZA PENSION
2.59%
ÅGERUP FASTIGHETER AB
2.06%
ORIGINAT AB
1.70%
NORDNET PENSIONSFÖRSÄKRING AB
1.02%
HAJSKÄRET INVEST AB
0.91%
STIFTELSEN OLLE ENGKVIST
0.80%
AB TRACTION
0.76%
Total, 10 largest shareholders
73.33%
Other shareholders
26.67%
Total
11
100.00%
• Sven A Olsson, Chairman of the Board
The Nomination Committee’s proposal
regarding the Board of Directors, election of
auditors, remuneration and more will be
published ahead of the AGM on 16 April 2014

12. Financial highlights
Q1

13. Production and sales in Q3
bopd
Q3
2013
Sept.
2013
4,200
3,800
3,800
North Africa
PAR production
Ytd
2013
West Africa
Average production (bopd)
700
400
300
4,900
4,200
4,100
Before Tunisian farm-out
9 000
8 000
7 000
6 000
4 200
2 000
Group Total
5 700
6 800
3 000
7 100
7 700
4 000
8 000
8 700
5 000
1 000
0
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
• AZURITE: Early field abandonment to commence
in Q4 2013, final lifting in Q4 2013
Average sales price (USD/bbl)
140
119
108
100
109
109
120
109
110
113
110
102
120
106
113
103
108
80
• TUNISIA: Shut-in of Didon since 1 July due to
maintenance work programme which has been
extended with expected completion early November
• PRICE: PA Resources realised price of USD 108 per
barrel compared to Brent average of USD 110
60
40
20
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
PA Resources
13
• ASENG: Oil production declined slightly, consistent
with expectations and facility’s gas handling capacity
Brent

14. Earnings and key ratios
Q3 2013
Q2 2013
4,200
4,800
Oil price (USD/barrel)
108
103
Revenue (SEK million)
293
332
EBITDA (SEK million)**
64
140
Profit before tax
(SEK million)***
10
-2
Profit for the period
(SEK million)
-501
-350
Earnings per share (SEK)****
-8.53
-12.89
Production (bopd)*
* 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 Q2 exclude non-cash, one-off costs of SEK 469 million and SEK 462 million
respectively.
*** Figures for Q3 and Q2 exclude non-cash, one-off costs of SEK 469 million and SEK 647 million
respectively.
**** The rights issue in September 2013 gave rise to retrospective adjustments
14
KEY COMMENTS Q3 vs Q2
• Revenue negatively impacted by lower
production counteracted by higher oil
price
• Cost for Didon recertification and
upgrade programme of SEK 48 million
• Decommissioning costs from early
Azurite abandonment of SEK 469
million, presented as one-off costs

15. Q3 & Q2 comparison after one-offs
SEK million
Q3 2013
Q2 2013
-501
-350
469
0
9/06 (Gita)
0
88
2008/17 (Block 8)
0
97
Tunisian farm-out
0
117
-46
3
0
8
-78
-38
Profit for the period
One-off costs
Decommissioning costs
Net exchange gains/losses
KEY COMMENTS
• Adjusted profit for Q3 and Q2 amounted
to SEK -78 million and SEK -38 million
respectively
• Difference of SEK -40 million is mainly
explained by cost for Didon recertification
and upgrade programme.
Profit for the period
(Adjusted)
15
Q3 2013
Q2 2013
4,200
4,800
Oil price USD(barrel)
108
103
Currency (USDSEK)
Didon 70% net result impact
6.52
6.50
Production (bopd)

16. Cash flow
SEK million
Q3 2013
Q2 2013
Jan.-Sept.
2013
KEY COMMENTS
Cash flow from operations
-27
-110
• Q3 capex of SEK 74 million, mainly
related to drilling activities in Block I in
Equatorial Guinea
Capex
-74
-38
-171
Rights issues
810
0
1,413
• Full year capex forecast of SEK 250380 million, expected outcome in the
lower part of the range
Loans raised
0
38
38
Amortisation of debt
-27
-121
-392
Cash flow from financing
783
-83
1,059
Net cash flow
16
-13
696
-149
778
• Rights issue of SEK 810 million, net
after transaction costs
• Cash and cash equivalents at the end
of the period, SEK 835 million

17. Current equity and debt situation
Covenants and Net Debt development
KEY COMMENTS
Q3 2013
Q2 2013
Q1 2013
Covenants
Book Equity (SEK
million)
2,144
1,973
2,201
>1,000
Book Equity to
Capital Employed
49%
46%
48%
>40%
1,422
2,197
2,111
N/A
Net debt (SEK million)
Debt maturity per 23 Oct. 2013 (SEK million)
800
Bond Loan 900m NOK
700
Bond Loan 750m SEK
600
Convertible Bond
500
400
300
200
100
0
January 2014
17
April 2014
April 2015
March 2016
April 2016
• Equity amounted to SEK 2,144 million
• New bond loan of SEK 750 million issued
and previous SEK 850 million repaid in
October

18. Way forward and outlook
Q1

19. New strategic plan – basis for ongoing review
• Current producing assets in natural decline, but provide
Forecasted production profile (boepd)
important cash flow for several years to come
• Several appraisal and development assets expected to
25 000
come on stream within the next few years
• The scenario entails an average production of 15,000 –
20,000 boepd in 2018 net to PA Resources
• The new strategic plan focuses on the following assets
to be developed into production:
» Zarat (13.7 mmboe 2P and 6 mmboe in 2C),first oil 2017
» Elyssa (16 mmboe 2C), first gas 2016
» Block I (1.7 mmboe – Diega or Carla South), first oil 2017
20 000
15 000
10 000
5 000
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
» Denmark 12/06 (8 mmboe – Broder Tuck or Lille John),
first production 2018
• Relatively conservative scenario with only three
discovered fields brought to development
• Tangible upside in discovered hydrocarbons as well as
exploration potential
19
Currently producing
Fields to be developed

20. Asset portfolio – Strategic plan assumptions
Producing assets
today
Development
assets included in
new strategic plan
• Tunisia Offshore: Didon
• Tunisia Onshore: DST fields
• Equatorial Guinea: Aseng and Alen
• Tunisia: Zarat and Elyssa
• Equatorial Guinea: Carla South or Diega
• Denmark: Broder Tuck or Lille John
• Tunisia: Didon and DST investment cases,
Key Assets NOT
included in new
strategic plan
20
Take out Greenland
onshore exploration
• North Sea: Bergman, German exploration
• Equatorial Guinea: Block I gas development
• Congo: MPS exploration
Production
Exploration and development

21. Medium term CAPEX plan 2014-2017
• Capex required to reach production of 15,000 -20,000
boepd by 2018 estimated at $600 million
CAPEX plan 2014-2017 (USD million)
• Majority of capex is related to development costs
300
• Assets are located close to existing infrastructure
which reduces capex and enables cost efficient
development
250
• Impact of farm-out carries is to back-end loaded PA
capex requirement towards 2016-2017
150
• Majority of medium term capex is for Tunisian
offshore assets, Denmark and Equatorial Guinea
• Key requirement of farm-in Operators was a track
record of cost control and project delivery in similar
developments
21
200
100
50
0
2014
2015
2016
2017
2018

22. Strategic review Path to completion
•
•
•
Mid to long term asset development plan
presented with Q2 Report and Rights issue
•
First step was to realise asset values and reduce
exposure through farm-out campaign to
experienced and efficient Operators
•
Next phase is to provide a more rigorous
definition of the portfolio upside
•
Then a refinancing plan will be put in place to
allow these field developments to be completed
•
22
Strategic review initiated after AGM in May
Final outcome of this strategic review process is
expected in Q1 2014
Financial situation stabilised in Q3 through
completed rights issue and bond issue

23. Thank you!
Q4 Report on 6 February 2014
Q1