News - OKEA

OKEA ASA – Profit warning - Provisional assessment of the norm price for Q2 2020 received

Trondheim, 25 September - OKEA ASA (“OKEA” or the “Company”) has today received the provisional norm price assessments for Q2 2020 for oil production on the Norwegian Continental Shelf from the Petroleum Price Board (no: Petroleumsprisrådet). Due to the extraordinary market situation during the quarter, the provisional assessment for the norm price differentials were significant for a number of fields. Compared to the initial estimate presented in the Q2 2020 financial statements, the provisional norm price indicates a reduction in the oil price for the Draugen lift in May of USD 10.75 per barrel.

The accounting effects of the provisional norm price assessment will be recognised in the Company’s financial statements for Q3 2020 by an estimated reduction in revenues of NOK 68m and an estimated reduction in profit after tax of NOK 15m. Should the provisional assessment for the norm price be determined as the final norm price, the cash implication for OKEA is estimated to a net outflow of NOK 15m.

For further information, please contact:

Birte Norheim, CFO, +47 952 93 321

Ståle Myhre, VP Investor Relations, +47 917 51 878

About OKEA

OKEA ASA is an independent Exploration and Production (E&P) company and operator on the NCS with a current production of ~20 000 boe/d. OKEA targets profitable production growth within the current portfolio combined with an opportunistic approach to M&A.

OKEA ASA is listed on the Oslo Stock Exchange under the ticker "OKEA". More information on www.okea.no