PA Resources

1. PA Resources – Q4 Report
Q4 Presentation
26 February 2015

2. Q4 Impairments
• Impairmentcharges with net impact of SEK 2,100 million
» using forward curve of January 9th
.
• Breach of financial covenants for both SEK and NOK bond loans.
• Balance sheet for liquidation purposes prepared.
• Equity well below 50% of the registered share capital.
• Decisionto continue operations or not at EGM February 27th
.
• Provided EGM votes to continue operations equity must be restored within 8 months
2

3. EnQuest termination
• Two transactions agreed and SPA signed in May 2013
» Sale of 70% of producing Didon Field for $23 million
» Farm-down of 70% of Zarat Permit for carry on Zarat development
• Zarat deal was conditional on Didon completionand approval of Avenant 5
• In September2013, Didonshares transferred to EnQuest
• EnQuest beganto pay cash calls and lift oil associated with a 70% interest
• $23 million was placed in escrowawaiting a letter of non-objectionfrom DGE
• This letter had not arrived by the January 31st backstop date
• In the new oil price environment, EnQuest had no desire to complete on Didon
• The transaction has now beenunwound and the $23 million returned to EnQuest
• Didon is cash negative at current oil prices and a major Opex reduction
programme is underway
3

4. Refinancing Process
• Planned refinancing Q3/Q4 2014 postponeddue to delay in Tunisian approvals
• Deferralof interest payment from early October2014 to early February 2015
approved by lenders in October
• Termination of the EnQuest transaction at end January led to a more challenging
short term financing situation
• Oil prices down from $100+ to $45 and currently at $60 per barrel
• Lenders yesterdayapproved further deferralof interest payments to March 31st2015
• The company will presenta proposalto the lenders in the next few days
• Aim to have an agreementin place before March 31st
4

5. Asset Update
5
• Tunisia
» ESP on Didon well failed due to breakdown of electricalinsulation downhole
» Didon currently producing around 950 bopd from two wells.
» Major Opexreduction programme underway
» Remaining parties in Zaratare PA, ETAP and Joint Oil, following termination of
EnQuest deal and liquidation of Sonde
» All three parties are committed to submitting UPOD and agreeing UUOA by March 31st
» ETAP and DGE advise that approval of Avenant is a priority for new Parliament
• Denmark
» Lille John 2 encountered oil with thicker reservoircolumn than in discoverywell
» A number of well tests were performed with a maximum rate of 1,400bopd
» A sidetrackwell was drilled to establish the location of the oil water contact
» PA Resources to be fully carried through this appraisal drilling by Dana
» Revised oil in place and recoverable volumes will be calculated following detailed
analysis of the well cores taken

6. UKCS 28th Licensing Round
• Rationale for PA Activity
» Utilise subsurface team knowledge and experience to provide growth options
» Balance of material exploration targets and existing discoveredresources
» Minimise commitmentlevels and maximise ‘optionality’
• Central North Sea focus
» Target areas containing sunder-explored plays in the Central North Sea
» Utilising PA long-standing UK CNS knowledge and UK relationships
» Leveraging continuing improvements in 3D seismic quality
6

7. Ekland prospect (22/18c,19d)
• History
» Block 22/18c is a prior PAR-operated licence dropped in
2012 owing to JV flux.
» Re-bid by PAR/First Oil with solid new partnership
» Operatorship to transfer to E.On on formal licence award
• Licence Group
» E.On (40%, Op), Cairn (25%), PA (25%), First Oil (10%)
• Prospectivity
» PAR as operator fully reprocessed 3D in 2012
» Ekland prospect – ready-to-drill, non-HPHT, mid-case
prospective resources 750 bcf and 75 mmbo
» On trend with the analogous Marnock Field (600 bcf and
50 mmbo), 15km south
» Interesting wells nearby in 2015/16: 22/16 Dalziel (GdF,
drilling now), 22/13 Manhattan (Nexen, 2015), 22/19
Rowallan (ENI, 2016)
• Commitment
» One firm well in first 4 yrs, likely 2017 or 2018
7

8. West Teal discovery (21/24b)
8
• History
» Originally four parties but DECC would not
award to Endeavour
• Licence group
» First Oil (Operator), PAR, Dyas (Each 33.3%)
• Prospectivity
» Licence contains the WestTeal discoveryand
a number of analogous prospects,last well
drilled 20 years ago
» WestTeal – 1991 well with untested 80’ – 250’
oil column in Jurassic Fulmar sandstone
» New 2013 multi-client 3D data available for a
re-evaluation of the block/discovery
• Commitment
» One contingent well in 4 year license period

9. 2014 Close Out
Exploration
West Africa
• Close farm-out to SOCO
• Confirm MPS drilling target
• Secure rig for MPS well
• Acquire Block I 3D seismic
Tunisia Onshore
• Plan seismic programme
• Execute seismic programme
North Sea
• Evaluate Danish 7th round
• Apply in UK 28th round
9
Appraisal & Development
Block I
• Submit Diega POD
Zarat
• Close EnQuest farm-out
• Complete UUOA
• Submit Zarat POD
Elyssa
• Plan appraisal well
• Secure rig for appraisal well
Lille John
• Close Dana farm-out
• Develop drilling plan
• Drill appraisal well
Broder Tuck
• Pre-Development evaluation
Birgitta
• Investigate export options
• Initiate development planning if
justified
Production
Didon
• Close EnQuest farm-out
• Install ESP
• Install additional ESP or drill
well
Tunisian Onshore
• Review DST fields
• Identify enhancement
opportunities
West Africa
• Drill Alen production well

10. Financial highlights
Q1

11. 11
Production and prices in Q4
• ASENG: Continued natural decline.
• TUNISIA: Newly installed ESP failed,
production loss compensated by well D7.
100% Didon will be included from January
2015, 70% contribution in Q4, 800 boepd
• AZURITE: Production ceased November 2013.
• PRICE: Significant oil price drop.
• CURRENCY: Continued strong USD.
5600
4800
4200
3600
3400
3200
3100
2900
1200
600
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
Average production (boepd)
PAR Production 70% Didon
113
103
108
106
109 108
100
72
113
102
110 109 108
110
102
77
65
70
75
80
85
90
95
100
105
110
115
120
Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
Average Sales Price (USD/bbl)
PA Sales Brent
6,52 6,71
6,43 6,51 6,51 6,74
7,24
7,81
4,08 4,04 3,90 3,94 4,10 4,02 4,03 4,19
1,11 1,11 1,07 1,06 1,08 1,10 1,12 1,05
31/3-13 30/6-13 30/9-13 31/12-13 31/3-14 30/6-14 30/9-14 31/12-14
Closing Day F/X Rates
USD/SEK TND/SEK NOK/SEK

12. Income statement
12
SEK million Q4 2014 Q3 2014 Jan-Dec
2014
Jan-Dec
2013
Revenue 88 155 603 1,049
Production costs -53 -49 -187 -490
Depletion O&G -57 -56 -195 -197
Gross profit -21 51 222 362
Other income and
G&A
-17 - -71 -124
Termination farm-out
agreement
-826 - -826
-
WD, Capital loss &
Decommissioning
costs
-1,991 - -1,991 -1,473
Operating profit -2,856 51 -2,667 -1,234
Financial items -65 -124 -365 -205
Profit before tax -2,921 -73 -3,032 -1,439
Income tax 175 -64 74 220
Profit for the period -2,745 -138 -2,957 -1,219
Q4 vs Q3
• Revenue decline due to lower sales price and
lower production.
• Other income and G&A included reversed
Azurite provision of SEK 31m in Q3.
• Terminated farm-out agreement Didon and
Zarat of SEK -826 million.
• Impairment charges of SEK -1,991 million
mainly from annual impairment tests.
• Financial items impacted by SEK 10m in
exchange gains vs. SEK -56m in Q3.
• Income tax positively impacted by reversed
deferred taxes of SEK 137 million with respect
to made impairment charges.
2014 vs 2013
• Significant impairments, capital loss,
decommissioning costs and termination farm-out
agreement for both years.
• Financial items excluding exchange gains /
losses amounted to SEK -278 (-305) million.

13. Impairment tests & Terminated farm-out agreement
13
Other write-downs pertain to Q7/Q10a disposal and
ESP failure
Equity impact calculated by using year-end rate of
USDSEK 7.81
Average rate for the year USDSEK 6.86
2014
Impairmentlosses(Gross) MUSD MSEK Equity MSEK
North Africa 155.8 1,068 1,217
West Africa 119.4 819 933
North Sea 10.1 70 79
Total 285.3 1,957 2,229
Other write-downs 5.0 34 39
Total Impairment losses 290.3 1,991 2,268
Reversal Deferred tax -19.9 -137 -156
Net impact 265.4 1,820 2,073
Reversal deferred taxes Other WD -1.1 -8 -9
Total net impact of impairment losses 269.3 1,846 2,103
Terminationfarm-out agreement MSEK
Upfront payment expensed -180
Adjustment abandonment cost -259
Adjusted deferred taxes -372
Other -15
Total -826
Terminated farm-out agreement of 70% interest in
each of the Didon field and Zarat license. PA now
holder of 100% in each asset.
Upfront payment of USD 23 million held in escrow
returned to EnQuest.
Didon valued to zero in impairment tests

14. Cash flow statement
14
SEK million Q4
2014
Q3
2014
Jan-Dec
2014
Jan-Dec
2013
CF from operations 17 -118 -108 -379
Proceeds from farm out - - 65 -
CAPEX -28 -54 -166 -271
Rights issue - - - 1,413
Loans raised - 53 182 764
Amortisation of debt - - -237 -1,182
CF from financing - 53 -55 995
Net cash flow -11 -119 -264 345
Q4 - 2014
• CF from operations SEK 17m:
• Tax payments SEK -15m in North
Africa.
No interest payments in fourth
quarter.
2014
• Azurite abandonment costs to
Murphy of c. SEK 170m in
operations
• Capex SEK -166m:
Mainpart from Makthar seismic
acquisition and Block I (Diega)
• Loans raised Gunvor WCF $ 28m
• Amortized net NOK -127m and
CB SEK -94m

15. Balance sheet
15
SEK million 31 Dec 2014 31 Dec 2013
Non-current assets 3,162 4,599
Current assets 399 861
Whereof cash 148 403
Total assets 3,561 5,460
Equity -810 1,795
Total Interest bearing debt 2,468 2,194
Other Non-current liabilities 1,235 593
Other Current liabilities 667 877
Total Equity and Liabilities 3,561 5,460
KEY COMMENTS
• Non-current assets mainly decreased due
to impairment charges.
• Current assets decreased mainly due to
returned upfront payment held in escrow
• Equity negatively impacted by annual
impairment tests of net SEK -2,073 million
as well as terminated farm-out agreement
of SEK -918 million (equity effect
corresponding to SEK -826m in P&L).
• Other non-current liabilities increased with
adjusted abandonment provision and
deferred taxes from the terminated farm-
out agreement

16. Balance sheet for liquidation purposes
16
• 1) 20 January: Equity effect in PA Resources AB after impairment tests on group level SEK-1,814.
• 2) 23 January: Board approves Balance sheet for liquidation purposes in which Equity amounts to SEK 50m, still
below 50% of registered share capital. Board called for EGM in press release 30 January.
• 3) 31 January: Farm-out agreement Didon & Zarat terminated, press released 2 February. Equity effect in PA
Resources AB SEK -878 million.
• 4) Updated balance sheet post termination including adjustments further weakened. Equity amounts to SEK -828
million.
1) Positive headroom after impairment tests of the value of shares in subsidiaries.
31 Dec 2014
(Version 23 Jan)
Adjustments 1)
Balance sheet for
liquidation purposes
Termination
farm-out
agreement
Updated balance sheet
including adjustments1)
SEK 000,000s
Total assets 2,035 300 2,335 -894 1,441
Total shareholders' equity -250 300 50 -878 -828
Total liabilities 2,285 - 2,285 -15 2,270
Total shareholder's equity
and liabilities
2,035 300 2,335 -894 1,441

17. Thank you