Successful Tunisian farm-out and strategic review

PA Resources update

Philippe Probst, CEO

Tomas Hedström, CFO

Stockholm, 29 May 2013

New management team

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Philippe Probst, President & CEO

• Geologist with more than 30 years' experience from

the international oil industry of which 20 year within

Shell Exploration and Production.

• Senior Executive (Head of New Ventures) with the

Swiss-based oil company Addax Petroleum

• Advisor to international oil companies, financial

institutes and investors in upstream mainly in Africa

and the Middle East.

Tomas Hedström, CFO

• Previous position as CFO at Rottneros AB

• Senior Vice President Finance SCA, CFO SCA

North America and other management positions in

Finance and General Management within the SCA

Group

Farm-out of Zarat and Didon

Q1

Farm-out transaction summary

• Upfront cash consideration of USD 23 million

• Additional cash payment of USD 93 million for a Zarat development

• Contingent payment of up to USD 133 million

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<<<<<<<<<<<<<<

+ • EnQuest as operator makes it possible

for PA Resources to realize value from

these assets

• Possible field life extension of Didon

• Retains significant upside potential through

remaining 30% interest

• Reduction of estimated USD 150 million

down to USD 45 million of commitments

and firm work program

• PA Resources share of Zarat development

to a large extent funded through EnQuest

-

• Loss of Operatorship

• Production reduced by ca 1,000

bopd

• Reduction of the company’s reserves

and resource base

• Book loss of SEK 110 million

PA Resources farms-out 70% interest in the Zarat permit

and Didon concession and operatorship to EnQuest PLC

With 100% interest PA Resources was never in a position

or intended to pursue development without a partner

-

• Located in the Gulf of Gabes within reach of existing

infrastructure (Ashtart, Miskar, Hasdrubal & Al Jurf)

• Extensively appraised discoveries with 7 wells drilled

• Zarat field the largest remaining field to be developed in

Tunisia

• Total gross recoverable hydrocarbons of c. 123 mmboe

(c. 40% liquids)

Zarat AshtartJenein NordHasdrubalAdam Fields

Za

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• 2 additional undeveloped discoveries and additional

prospects and leads

• Potential tie-back to existing/planned infrastructure

Zarat and Elyssa Fields

Overview: Offshore Tunisian Assets

Zarat Permit

• Onstream since 1998, 31 mmbbl oil produced to date

• Current production of approx. 1,400 bopd

• Infill production wells and ESP’s evaluated as technically

feasible, to extend field production life cycle BRING

MAP

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Producing Didon Field

Top 10 remaining liquids fields in Tunisia

Farm-out further details (1)

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• Structured as two separate transactions, effective date 1 January

2013

» Didon concession – closing expected H2 2013

» Zarat permit (Zarat and Elyssa fields) – closing expected by year-end

2013

• Upfront cash consideration of USD 23 million payable at closing

of Didon transaction

• Additional cash payment of USD 93 million payable as a contribution

to the development of the Zarat field, EnQuest is therefore funding

a large part of PA Resources’ share of development

• Participating interests and payments are subject to ETAP (Tunisian

state oil company) back-in rights (up to 55%)

Facts about the transaction

Farm-out further details (2)

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• Contingent payments are intended to share upside between

PA Resources and EnQuest

• Contingent payments of up to USD 133 million following successful

project developments relating to achieving certain targets

» Development cost of 2P reserves not greater than USD 18 per boe

» With top end of the range achievable if such development costs are

USD 13 per boe or less

» Payments conditional on achievement of certain project revenue targets

(i.e. oil and gas price effects)

Facts about the transaction

Farm-out further details (3)

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• The farm-out will reduce

» 2P reserves from 56 to 24 mmboe

» Contingent Resources from 142 to 78 mmboe

» Production from the Didon field by approx. 1,000 boepd (net),

from 1,400 boepd to 400

• Farm-out leads to book loss of SEK 110 million

• Completion of transaction subject to a number of conditions

precedent e.g. approval by relevant authorities

• PA Resources retains significant upside potential in the offshore

assets through its remaining 30% interest and maintains its present

interest of Tunisian onshore assets and DST fields

Effects and conditions for the transaction

EnQuest operator with strong track record

• EnQuest PLC is the largest UK independent producer in UK North Sea

• Significant experience in acquiring and developing stranded

and mature assets

• Large organisation with strong capabilities, around 1,300 employees

and contract staff, highly skilled in innovative and cost efficient

developments

• Key persons with previous experience of building and operating similar

portfolios internationally, including in Tunisia

• Financially solid partner with strong track record in operating its

North Sea assets

• Market capitalisation of approx. GBP 1,032 million, shares trading on

both London Stock Exchange and the NASDAQ OMX Stockholm

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EnQuest in brief

Strategic review

Q1

Strategic review initiated

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• New board of directors

• New managment

• Review of assets and strategy

• Considering long-term financing alternatives

Review of strategy, assets and long term financing

Thank you

Q1 Thank you!