Pareto Securities Corporate Bond Conference 23 January 2014

1. A New Story for PA Resources
Mark McAllister, CEO
Pareto Bond Conference
Stockholm, 23 January 2014

2. The Renewal is underway.....
 We have made very significant progress in 2013 in our regeneration plan
 A highly experienced management team is now in place
 A series of strategic farm-outs has shaped the portfolio for development
 Equity raised has lowered leverage
 Two new large owners with outstanding industry experience
SEK 891m
Equity
May
Jun
Tunisian
Farm-Out
2
Congo
Farm-Out
Jul
Aug
Sep
Denmark
Farm-Out
Oct
SEK 750m
Bond
Nov
Dec
Azurite
Field
Closure
…and further drilling success in Equatorial Guinea!

3. Mark McAllister
Chief Executive Officer

Monument Exploration
» Director of Operations

LASMO plc
» Managing Director (Europe and N Africa)

Acorn Oil & Gas
» Founder and Managing Director

Fairfield Energy
» Founder and CEO

Board Member of Oil & Gas UK

Founding Chairman of OSPRAG
» North Sea response to Macondo blow-out

Decommissioning Security and Relief Steering Committee
» Oil industry engagement with HMG on tax relief status

3
Honorary Doctorate from Robert Gordons University
» Services to the Oil Industry

4. Tomas Hedstrom
Chief Financial Officer

PWC
» Auditor

SCA
» Senior Vice President, Stockholm, Large cap
» CFO, (North America) Philadelphia
» Vice President Business Control, Stockholm
» Managing Director SCA Recycling, London
» Head of M&A, Packaging division, Brussels
» Managing Director, Packaging sub, Stockholm

Rottneros
» CFO, Stockholm, small cap
4

5. Kevin McGrory
General Counsel

Unocal
» Regional Counsel, MEA

Chevron
» Senior Legal Adviser, Upstream Operations

Anadarko
» Vice President, Legal & Negotiations EMEA

Delta Group
» Group General Counsel

Fairfield Energy
» General Manager, Legal & Commercial

Shepherd and Wedderburn LLP
» Partner, Head of Oil & Gas Law

5
Seven Energy International Ltd
» General Counsel

6. Graham Goffey
SVP Exploration, MD N Sea and W Africa

Conoco
» Geologist

LASMO plc
» VP Exploration, Indonesia

Sterling Energy plc
» Exploration Manager

Paladin Resources plc
» Business Unit Manager, International


Member of Advisory Board, Petroleum Geoscience MSc, Royal Holloway University

Previous Chairman, Petroleum Group of Geological Society of London

6
Director of Oil and Gas Independent Association
BSc (Birmingham), MSc (Imperial College), MBA (Warwick)

7. Paul Elstone
Managing Director PA Tunisia

Aramco – Saudi Arabia
» Field Engineer

NIOC - Iran
» Engineering Superintendent

Mesa Petroleum - UKCS
» Commissioning Manager

BP – UKCS & International
» Offshore Installation Manager (OIM)
» Mature Assets Business Manager, UKCS
» Field Manager, New Project Start-up, Venezuela
» Business Transformation and Start-up Manager, Azerbaijan
» Area General Manager , GUPCO Egypt
» HSE Business Transformation Advisor, Trinidad & Tobago and US Refining post Texas City
7

8. Slimane Bouabbane
VP Business Development

Technip/Coflexip Stena (Aberdeen)
» Engineering
» Support to worldwide offshore project

IntecSea (Houston)
» Project and Engineering
» Support to E&P companies and contractors

Subsea 7 (London/Stavanger/Paris)
» Management roles, commercial and strategy
» Turn-around team of Acergy/Stolt Offshore

PA Resources (Stockholm)
» VP Projects & Investments
» Farm-out, Financing, Investment management


8
Board Member of The MacArtney Underwater Group (Denmark)
MBA (INSEAD) and Engineering Deg. (Ecole Centrale Marseille)

9. The Portfolio
Production
Appraisal
&
Development
Priority
Upside
Potential
9
• Tunisia Offshore: Didon
• Tunisia Onshore: DST
• Equatorial Guinea: Aseng & Alen
•
•
•
•
•
•
•
•
Take out Greenland
Tunisia: Zarat & Elyssa
Equatorial Guinea: Diega
Denmark: Broder Tuck & Lille John
UK: Birgitta (22/19-1)
Production
Tunisia: Onshore exploration
North Sea: Danish/German exploration
Equatorial Guinea: Gas, exploration
Congo: MPS exploration
Exploration and development

10. A hat trick of successful farm-outs
PA has undertaken a highly focused farm-out campaign.
Each operator is a technical and strategic fit for the respective licence.
Exploration
Appraisal
Production
MPS
Congo
12/06
Denmark
Zarat
Tunisia
 Farmed out 40% to SOCO
 Farmed out 40% to Dana
 Farmed out 70% to EnQuest
 PA retains significant upside
with a 25% interest
 PA retains significant upside
with a 24% interest
 PAR retains 30% interest in
production & development
 SOCO will carry PA share of
exploration costs
 $44m consideration including
appraisal and development
carry
 $249m consideration including
carry and contingent
payments
 Financial strength of KNOC
behind Dana
 EnQuest expert in mature field
extension and new
developments
 An exploration well in the
remaining license period
 SOCO is an established
operator in Congo
 SOCO and PA AMI for
further activity
10
 Dana operates nearby
licenses
 Also includes German
exploration acreage
 Dana joining PA Danish 7th
Round bidding group
 EnQuest and PA AMI for
further acquisitions

11. Didon Field
1976
1997
1998
2005
2006
2008-2009
2011
Discovery
Concession
First Oil
PA Acquisition
Platform + 2 Wells
4 New Wells
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 Electrical Submersible
Pump on one of three wells in 2014
» Will follow up with new production well
» Further ESP installation and new wells likely
in following years
11
2017
2013-2017
2013+
First production
Development program: ESP, Infill,
LEX

12. Zarat Field
1990
1992
1995
2005
2010-2011
2011-2012
2014
2015-2017
2017
Permit Award
Discovery
Appraisal Well
PA Acquisition
ZRT-N1 Appraisal
POD Update, Unitisation
UPOD, UUOA
Development
First production
» 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 sour gas
» Commercially complex since unitisation
required with Joint Oil block
12

13. Elyssa Field
1974
Discovery
1992
Appraisal
Well
2005
2006/2007
PA Acquisition
Appraisal Well + ST
2010
» Another significant gas accumulation
» Four well penetrations drilled to date
with one further appraisal well planned
» Straightforward development if appraisal
is successful
» Commercially simple with whole field in
PA licence
» Local infrastructure with ullage for gas
» Tunisian need for gas will ensure active
ETAP support once appraisal complete
13
2013
New 3D Seismic ELY-4 Appraisal Well
2014
POD
2014-2016
Development
2016
First Production

14. Broder Tuck
2006
2008
2011
2012
2014
2015
2017
6th license round
Awarded to Scotsdale
PA acquired
Scotsdale
Exploration well
+ ST
Declaration of
commerciality
BT POD
Development
start
First production
» Gas field discovered by PA in 2011
» Estimated recovery 15-45mmboe
» Development Plan will be completed in 2014
» In shallow water and adjacent to existing
infrastructure
» Preferred development concept to be
determined in 2014
» Good progress in discussions with nearby
host platform and an alternative host is
under active review
14

15. Lille John
2006
2008
2011
2012
2014
2015
2017
6th license round
Awarded to Scotsdale
PA acquired
Scotsdale
Exploration well
+ ST
Declaration of
commerciality
LJ appraisal well
Development
start
First production
» Oil field discovered by PA in 2011
» Estimated recovery ranges from
uneconomic up to 60mmstb if appraisal well
confirms reservoir model
» Appraisal well required to confirm size of
structure
» Currently looking at 2014 slot in Dana rig
programme
» Straightforward tieback to existing
infrastructure for oil export to Danish
mainland
» Appraisal well required to establish better
reservoir development
» Will pursue this trend together with Dana
15

16. Mer Profonde Sud
2002-2004
» Azurite Field now abandoned and vessel
shortly to depart
» Murphy exited after Azurite failure but
remain in the Azurite Exploration Permit
» MPS: 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
17
2010-2011
2014
WO & Infill Drilling
3D Seismic
DL-23

17. Strong Supportive Shareholders

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
17

18. Current debt in the market
Following repayment of convertible bond on 15th January 2014, PA Resources currently have 2
outstanding bonds:
NOK Bond
SEK Bond
ISIN
ISIN
NO0010605728
Amount outstanding
Maturity date
Amount outstanding
NOK 810,000,000
Coupon
2016-03-03
Amortisations
--
Coupon
12,25%
Interest payments
13,50%
Interest payments
Semi-annually
April/October
Annually
Covenants and Net Debt development
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)
18
SEK 750,000,000
Maturity date
2016-04-05
2014-04-05: NOK 135m
2015-04-05: NOK 135m
Amortisations
SE0005392834

19. Earnings – Q1 to Q3
SEK million
Profit for the period
Jan – Sept 2013
-817
One-off costs
Decommissioning costs
469
9/06 (Gita)
89
2008/17 (Block 8)
97
Tunisian farm-out
117
Remaining costs Azurite field
21
Net exchange gains/losses
Didon 70% net result impact
-88
3
Profit for the period
(Adjusted)
19
-109

20. Cash flow – Q1 to Q3
SEK million
Jan - Sept 2013
Cash flow from operations
-110
Capex
-171
Rights issues
1,413
Loans raised
38
Amortisation of debt
Cash flow from financing
Net cash flow
20
-392
1,059
778
KEY COMMENTS
• Rights issues of SEK 810 million and
SEK 604 million respectively, net after
transaction costs
• Full year capex forecast of SEK 250380 million, expected outcome in the
lower part of the range
• Cash and cash equivalents at the end
of the period, SEK 835 million

21. .....progress will continue in 2014.......
 Field rehabilitation in Didon
 ESP on a current producer
 A new production well
 Development Plans approved:
 Zarat
 Diega
 Development concepts worked:
 Broder Tuck
 Birgitta
 Rigs secured and drilling plans in place:
 Lille John
 Elyssa
21
 MPS