PA Resources reported on its first quarter 2012 results. Production averaged 8,700 barrels of oil per day, higher than Q4 2011 due to a full quarter of production from the Aseng field in Equatorial Guinea. Revenue was 650 million SEK, up from 535 million SEK in Q4, driven by higher oil prices and production. EBITDA was 395 million SEK compared to 306 million SEK in Q4. Net debt was reduced by 580 million SEK since the end of 2011 to 3.4 billion SEK. Capex spending remained low as development focused on the Aseng and Alen fields in Equatorial Guinea.
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
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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
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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
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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
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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
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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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