Second Quarter 2012
Bo Askvik, President & CEO
Nicolas Adlercreutz, CFO
Stockholm, 15 August 2012
Financial highlights
Q1
Earnings and key ratios
3
Q2 2012 Q1 2012 1H 2012 1H 2011
Production (bopd) 8,000 8,700 8,300 9,100
Oil price (USD/barrel) 109 120 113 101
Revenue (SEK million) 542 650 1,192 1,125
EBITDA (SEK million) 302 395 697 694
EBITDA margin 55.7% 60.8% 58.5% 61.7
Profit before tax
(SEK million) *
-23 68 45 131
Profit for the period
(SEK million)*
-118 -31 -149 -116
Earnings per share (SEK) -0.33 -0.05 -0.38 -0.18
* Figures for Q2 exclude non-cash, one-off costs of SEK 92 million
KEY COMMENTS Q2 vs Q1
• Lower production and realised
price lowered revenue
• Stable OPEX, to a large extent
fixed costs
• EBITDA margin 55.7%
• Depreciation somewhat lower
due to lower production
• “Maja” write-down of SEK 92
million in Q2 2012
• Financial net increased due to
fx effects and non-cash costs
related to amortization of debt
• Tax/EBITDA 31% in Q2
Cash flow
4
SEK million
Q2
2012
Q1
2012
1H
2012
1H
2011
Operating cash flow 425 175 600 466
of which income
taxes paid
-2 -3 -5 -29
CAPEX -21 -32 -53 -963
Financing activities -570 -13 -583 -550
Net cash flow -167 131 -36 -1,047
KEY COMMENTS
• Operating cash flow of SEK 425
million in Q2
• Continued minimal capex spending,
mainly on Aseng and Alen develop-
ment in EG
• Amortizations in Q2 amounted to
SEK 570 million
• Didon lifting in late June of 197,000
bbls (USD 19 million) with final
payment in July
Q2 2012 Q1 2012 Dec. 2011 Covenant
Book Equity (SEK million) 3,064 2,994 3,270 >2,000
Book Equity to
Capital Employed 47% 43% 45% >40%
Net debt (SEK million) 3,503 3,803 3,982 N/A
Reduced debt
5
KEY COMMENTS
• Available credit lines end of Q2
amounted to approx. SEK1.1 billion
of which approx. 73% utilised
• Amortizations of SEK 570 million in
Q2 and SEK 583 million 1H 2012
• Net debt reduced to SEK 3.5 billion
• RBL-facility fully repaid in Q2,
Azurite field‟s poor performance
resulted in increasing costs and less
favourable terms and conditions
• Next bond maturity in October 2013
Interest-bearing debt per June 2012
Covenants and net debt
53%
25%
22% Bonds
Convertible bond
Credit facilities
6
Production and sales in 2012
bopd Ytd 2012 Q2 2012 July 2012
West Africa 5,900 5,700 5,800
North Africa 2,400 2,300 2,400
Group Total 8,300 8,000 8,200
• ASENG: Average production level increased to
63,000 boepd in Q2 (3,600 net to PA Resources)
• AZURITE: One week shutdown for field
maintenance successfully performed in May,
production back in early June
• TUNISIA: All three onshore fields are back in
production after the temporary shut down
• PRICE: PA Resources realised price slightly
above Brent average for the quarter
Average production per country (bopd)
Average sales price (USD/bbl)
0
2000
4000
6000
8000
10000
12000
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012
Congo: Azurite EG: Aseng Tunisia: Didon & Onshore
71 78
72
82
97
109 106 104
120
109
77 79 78 85
106
117 113 109
119 108
20
40
60
80
100
120
140
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
PA Resources
Brent
1,613
53
240 - 375
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2011 2012
MS
EK
Maintained Capex forecast 2012
Actual Forecasted
Capex 2011 - 2012
Tunisia: Zarat Elyssa 2013 Appraisal/1
Tunisia: Makthar 2014 Exploration/1
Congo: MPS Azurite 2H 2012 Sidetrack/1
EG: Block I Block I 2013 Appraisal/
exploration/1
EG: Block H Aleta Q4 2012/2013 Exploration/1
DK: 12/06 Lille John 2013/2014 Appraisal/1
Drilling program/planned wells 2012-2014
KEY COMMENTS
• 2012 forecast of SEK 240-375 million stands
• Capex of SEK 21 million in Q2 and
SEK 53 million in 1H 2012
• Azurite sidetrack preparations and drilling
imminent
7
Operations & Outlook
Q1
Denmark: Gita extended and Maja relinquished PA Resources 26.8%
Gita-1X well in 2008/2009
• Drilled to TD 5,162m Upper Jurassic primary
target - reservoir encountered but no hydrocarbons
» Failure due to absence of stratigraphic trapping, limited
reservoir development
• Middle Jurassic secondary target - sandstones
encountered with logged hydrocarbons
» Modest hydrocarbon saturations, no significant shows
and very low permeability
» Subsequent work has not reduced risk on presence of
produceable hydrocarbons in Gita-1X/Middle Jurassic
Exploration commitment in 9/95 Maja
• Focused on a deep, HPHT gas prospect reliant on
stratigraphic trapping at several Upper Jurassic
levels
• High cost ($100mm+) stratigraphic trap considered
by PA Resources to be a relatively high risk target
9
Licence Group: Operator Maersk (31.2%), PA Resources
(26.8%), Dong E&P (20%), Noreco (12%), Danoil (10%)
Gita-1X
Denmark: Gita way forward and Danish focus
Future exploration in 9/06 Gita
• Block not yet fully evaluated at all prospective levels
– Jurassic, Cretaceous and Tertiary
• Nearby discoveries at shallower Cretaceous and
Tertiary levels provides reason to continue
evaluation
Strategic conclusion for PA Resources
• Focus on „conventional‟ shallower target levels,
not deep, expensive HPHT gas
• PA Resources-operated 12/06 exemplifies this
strategy and offers attractive opportunities for the
company
10
Denmark 12/06: Way forward PA Resources 64%
Broder Tuck
• High quality Middle Jurassic reservoir proved by
wells
• Mid to high case assessment of c. 25-50 mmboe
gross of contingent resources including liquids
• Commercialisation studies continues through 2012
Lille John
• Wells established 35 API oil in Miocene sandstone
at c. 900m – exceptionally light oil for shallow depth
• Work focused on Miocene prospect inventory
• Remaining deeper potential likely – 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 and efforts to
locate available rig continues
11
Licence Group: Operator PA Resources (64%), Danish
North Sea Fund (20%), Spyker Energy (8%), Danoil (8%)
B20008-73
12/06 Broder Tuck - 2
Lille John-1
Joint Oil Block
ZRTN-1
ZRT-2
El Nisr
Didon North Field
Didon Field Zarat West
ZRT-1
TUNISIA LIBYA
Zarat Field (PART)
Didon Concession
Zarat Field
Zarat Permit Elyssa Field
Fields
Lead / Prospects
Didon South
Massinissa
Updip
Aliyan
• PA Resources largest Tunisian asset, farm-out
process initiated in early Q3
• Zarat permit contains the Zarat field – third
largest oil, gas and condensate field found
offshore Tunisia
» 43 mmboe in booked 2P reserves
(100% liquids) and significant additional
gas resource potential
» Discussions and development planning
ongoing, aim to complete Unitised Plan
of Development by end of Q1 2013
» UPOD approval targeted for end of Q2
2013
Licence Group: Operator PA Resouces 100%
ETAP has a back-in right of up to 55%
Tunisia: Zarat Permit – farm-out process initiated PA Resources 100%
Zarat field
12
• Jelma-Makthar permits surround producing
Douleb, Semmama and Tamesmida (DST)
fields onshore Tunisia
• The Jelma and Makthar permits cover
areas of 7,216 km² and 3,828 km²
• Limited exploration activities conducted on
the permits and considered relatively low
risk
• Successful exploration and production
history in the region
• Serdj play proved as working petroleum
system for DST fields
• Nearby oil and gas infrastructure
Tunisia: Onshore exploration potential PA Resources 100%
13
Tunis
Sfax
4
3
1
2
Algeria Libya
Tunisia
1 Makthar Permit
Tunis
Sfax
4
3
1
2
Libya
Tunisia
Producing Asset
1
1 Jelma Permit
2
1 Douleb, Semmama
& Tamesmida
3
Jenein Centre Permit 4
Exploration Acreage
• Makthar permit contains several onshore
exploration prospect, permit extended to
2014
• Detailed analysis and modelling of 2D
seismic over Makthar finalised
• Evalutaion of Jelma permit potential
completed
• Regional mapping of reservoirs, seals and
source rock formations over both permits
completed
• Awarded open acreage around Douleb
(189km2) as integrated into Makthar permit
• New seismic to be acquired over Makthar‟s
most promising prospects and leads to
mature prospect for commitment well in
2014
Licence Group: Operator PA Resouces 100%
ETAP has a back-in right of up to 55%
Tunisia: Makthar permit extended PA Resources 100%
14
NW Maiza
Boughanem
Friha
Jelma permit
Makthar permit
Douleb & Semmama
• Marked decline in one well in February 2012
due to well completion failure in oil producing
zone
• Full evaluation of remedial options to replace
or reinstate well completed
• Joint venture decision to drill sidetrack to
twin failed producer in western fault block from
Azurite FDPSO, in order to restore lost
production
• Preparatory activities commenced -
mobilisation of drilling crew and long lead
items
• Drilling activities expected to start in early Q4
and well to be on stream in early Q1 2013
15
Congo: Drilling of Azurite sidetrack imminent PA Resources 35%
Licence Group: Operator Murphy (50%),
PA Resources (35%) and SNPC (15%)
NORTH
WEST
CENTRAL
EAST
Congo: Sendji prospect potential in MPS PA Resources 35%
16
• Mer Profonde Sud licence contains several
promising prospects in two structures
» Miocene - producing in Azurite field
» Deeper Sendji - shallow water reservoir
new target established by 2010 wells
• Evaluation of re-processed 3D seismic
and prospect mapping
• Operator Murphy to spud a well on adjacent
MPN licence in Q3 2012 targeting a 250 million
barrel Sendji carbonate prospect
Licence Group: Operator Murphy (50%),
PA Resources (35%) and SNPC (15%)
Azurite
Sendji
prospects
EG Block H: Aleta exploration well PA Resources 6.25%
• Firm plans to drill commitment well
• Production sharing contract extended to Feb
2013 to allow exploration drilling
• Block H contains several prospects and leads
up to several hundred mmbo gross, unrisked
• Work continues to locate an available rig to
drill the Aleta prospect in 2012/2013
Licence Group: Operator White Rose 46.31%, Atlas
23.75%, Roc Oil 19%, PA Resources 5.94%, GEPetrol 5%
* Interests shown are subject to GE Petrol back-in
Aleta
17
EG Block I: Aseng production gradually increased PA Resources 5.7%
• Total field production since start in November 2011
of 14 mmboe – 800,000 barrels to PA Resources
• Capex of approx 10 USD per barrel, investments
of SEK 500 million recovered
• Average production of 63,000 bopd in Q2,
3,600 net to PA Resources
• Operator to gradually increase production at
rates between 65,000 and 70,000 in Q3
(3,700 – 4,000 net to PA Resources)
18
EG Block O/Block I: Near term drilling program PA Resources 5.7%
• Operator secured Atwood Hunter rig for
drilling program likely to include drilling
in Block I
• Work underway to firm up exploration/
appraisal campaign late Q4 2012 or 1H 2013
• Likely targets exploration/appraisal wells:
» Exploration/appraisal of trend proven by
the 2011 Carla discovery in adjacent
Block O
» Appraisal well in Block I on the Diega
accumulation
19
Licence Group: Operator Noble Energy (38%),
Atlas Petroleum Int. (27.55%), Glencore (23.75%),
PA Resources (5.7%), GEPetrol (5%)
20
Outlook and focus 2012
• Drilling of sidetrack to Azurite well
• Increased production levels at Aseng
• Selective appraisal and exploration
activity in EG: Block I and Block H
• Appraisal drilling and development
planning of Danish discoveries towards
commercialisation
• Progressing the Zarat field and Block I
development projects
Thank you! Q1
Q3 Report on 24 October 2012