EGM 2012

Bo Askvik, President & CEO

Stockholm

7 December 2012

Presentation outline

2

Financial highlights

» Equity increase of SEK 1,700

million

» Net debt reduced to SEK 1,900

million 1)

» Equity post recapitalisation

transaction approx. SEK 2,500

million

Recapitalisation proposal 1 2

» Financial strength combined

with farm-out transactions

» Development of 30 Mmboe at

USD 9/boe in operated assets

» Asset revaluation – upside

potential

Way forward - business plan 3

» Operational recent

developments

» Q3 operational result in line

with market expectations

» Congo asset impairment of

SEK 1,495 million

1) After cost and assuming 100% acceptance

3

Recent development

HIGHLIGHTS

• Alen field development progressing according to plan,

targeting first production in 2H 2013

• Block I targets for exploration and appraisal drilling in

2013 in progress

• Zarat permit extended until July 2015, with Elyssa

appraisal well scheduled in 2013, farm-out activities

on-going

• Appraisal requirements and development options are

evaluated on Danish 12/06 – parallel with efforts to

locate available rig continues. Initiated discussions with

Maersk for infrastructure tie back

• Awarded provisional UKCS licence - Block 22/19a -

containing undeveloped Fiddich gas/condensate field

(1984) and adjacent to PAR-operated Block 22/18c

• German licence farm-out to Danoil (10%) – partner in

adjacent 12/06 licence.

• Tentative Unitization agreement of the Zarat field

4

Production and sales Ytd 2012

bopd Ytd 2012 Q3 2012 Nov. 2012

West Africa 5,700 5,600 4,800

North Africa 2,300 2,100 2,400

Group Total 8,000 7,700 7,200

• ASENG: New production level of 60,000-63,000

bopd to maximise reservoir recovery

• AZURITE: Sidetrack operations begun in Q4 and

expected to last several months. Plug & abandon

completed, drilling to commence.

• TUNISIA: Onshore fields are back in production

after the temporary shut down in Aug/Sep

• PRICE: PA Resources realised price equal to

Brent average for the third quarter

Average production per country (bopd)

Average sales price (USD/bbl)

71 78

72

82

97

109 106 104

120

109 109

77 79 78 85

106

117 113 109

119

108 109

20

40

60

80

100

120

140

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

PA Resources Brent

0

2000

4000

6000

8000

10000

12000

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

Congo: Azurite EG: Aseng Tunisia: Didon & Onshore

Q3 financial highlights

Q1

6

Q3 impairments and tax adjustments

• One-off and non-cash impairment charges and

write downs in Q3 of in total SEK 1,495 million

• The Marine XIV license in the Republic of Congo

was relinquished in early October, resulting in a

write down of approximately SEK 174 million

• The annual impairment test performed and

assets in the Republic of Congo impaired,

mainly as a result of a revision of Azurite field’s

recoverable reserves

• Azurite/Mer Profonde Sud impairment of SEK

1,321 million. Azurite future book value only new

sidetrack/well

• Previously unreported deferred tax liabilities

pertaining to periods before 2011 have been

adjusted by SEK 445 million and reported directly

against share-holders' equity for the opening

balance of 2011

• New opening balance of equity 2012

SEK 2,816 million

• Previously unreported deferred tax assets in the

parent company reduced income taxes in Q3 by

SEK 125 million

Impairments Tax adjustments

Earnings and key ratios

7

Q3

2012

Q2

2012

Jan-Sep

2012

Jan -Sep

2011

Production (bopd) 7,700 8,000 8,100 8,700

Oil price (USD/barrel) 109 109 113 103

Revenue (SEK million) 525 542 1,717 1,619

EBITDA (SEK million) 292 302 990 989

EBITDA margin 55.7% 55.7% 57.6% 61.1%

Profit before tax

(SEK million) *

64 -23 107 147

Profit for the period

(SEK million)*

-15 -118 -166 -229

Earnings per share (SEK) -2.17 -0.33 -2.55 -0.36

* Figures 2012 exclude non-cash, one-off write downs and impairment charges of SEK 1.495million

(SEK 1.370 million after tax) in Q3, SEK 92 million in Q2 and SEK 1.585 million (SEK 1.460 million

after tax) in the nine-month period.

KEY COMMENTS Q3 vs Q2

• Lower production lowered

revenue

• Stable OPEX, to a large extent

fixed costs

• EBITDA margin of 55.7%

• Depreciation somewhat lower

due to lower production

• Financial net strengthened due to

fx effects and both lower interest

and amortized cost

• Tax/EBITDA 27% in Q3

Cash flow

8

SEK million

Q3

2012

Q2

2012

Jan-Sep

2012

Jan-Sep

2011

Operating cash flow 64 425 664 917

of which income

taxes paid

0 -2 -5 -38

CAPEX -16 -21 -69 -1,478

Financing activities -51 -570 -634 -445

Net cash flow -2 -167 -39 -1,005

KEY COMMENTS

• Operating cash flow of SEK 664

million Jan-Sep

• Continued low capex spending,

mainly on Aseng and Alen

development in EG

Capex forecast 2012/2013

Actual Forecasted

Capex 2011 - 2013

Tunisia: Zarat Elyssa 2013 Appraisal/1

Tunisia: Makthar 2014 Exploration/1

Congo: MPS Azurite Q4 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 unchanged

• Capex of SEK 16 million in Q3 and SEK 69 million

for nine-month period 2012

• Azurite sidetrack drilling imminent

• 2013 forecast SEK 250-380 million

9

1,613

69

240 - 375 250-380

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2011 2012 2013

MS

EK

Q3 2012 Q2 2012 Q1 2012 Covenant

Book Equity (SEK million) 956 3,064 2,994 >2,000

Book Equity to

Capital Employed 22% 47% 43% >40%

Net debt (SEK million) 3,410 3,503 3,803 N/A

Current debt situation

10

KEY COMMENTS

• Recapitalisation to restore Equity and Book

equity/Capital employed above requirement

in covenants

• Waiver obtained for both NOK & SEK bonds

covenants

• Waiver conditional on EGM approval of

proposed recapitalisation

• Bond loans will be due for immediate

repayment if waiver is withdrawn

• New equity post recapitalisation of approx.

SEK 2,500 million

Covenants and net debt

Recapitalisation

Transaction in brief Q1

Development 2010–2012: Azurite set-back

12

Production

0

5 000

10 000

15 000

20 000

2010 2011 2012 YTD

Ave

rag

e b

op

d

2010 Strategic Plan Actual Production

CAPEX

0

1 000

2 000

3 000

4 000

5 000

6 000

2010-2012 2010-2012E

MS

EK

2010 Strategic Plan Actual CAPEX

Operating cash flow*

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2010-2012 2010-2012E

MS

EK

2010 Strategic Plan Actual Operating Cash Flow

• Production 2012 YTD turned out almost 10,000 boepd

below the plan set fourth in 2010 – mainly due to Azurite

– Negative operating cash flow effect of more than

SEK 2.9 billion 2010-2012 YTD*

• Other assets – especially Aseng – have performed in

line or above plan

• Planned capex delayed due to cash flow constraints

• Operating cash flow** from producing assets remains

strong – SEK 664 million 2012 YTD

*) Net entitlement. Based on an oil price of USD 80/bbl

**) Operating cash flow pre capex, post tax

Indebtedness too high given current asset base

13

Background

Poor Azurite performance

Perceived inability to

develop assets

Weak balance sheet

Accelerated amortizations

Low perceived

value of assets

Difficulty to

make asset

transactions

• Underlying cash flow from production stable but

net indebtedness following Azurite set-back too

high and liquidity has become a constraint

• Recapitalisation to strengthen balance sheet

critical to avoid financial distress

Unfavourable

conditions for

credit facilities

Price pressure

on all traded

instruments

Net debt development

Net debt of which convertible bonds Net debt*/equity

*) Includes convertible bonds, before impairment

3,7

2,5 2,8

3,1 3,2 3,5

3,7 4,0

3,8 3,5 3,4

85%

41% 52% 60% 68%

77% 72%

122% 127%

114% 140%

0%

50%

100%

150%

200%

0

1

2

3

4

5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2010 2011 2012

Net d

eb

t/eq

uity

(%) N

et

de

bt

(SE

Km

)

Ownership

Ownership

8%

92%

4%

48%

24%

24%

» Offer to convertible bondholders

to set-off their convertible bonds

against newly issued shares at

SEK 0.15

» Fully underwritten rights issue

of approx. SEK 700 million at

SEK 0.10 (~50% directed to old

equityholders and ~50% to

convertible bondholders)

Solution: Recapitalisation for future growth

» The company believes that after the

transactions its balance sheet will be

sufficiently strong to:

• Increase ability to complete asset

divestments

• In combination with new debt

financing, enable ability to develop

prioritised assets to secure future

growth

• In combination with new debt

financing, enable planned

amortisation of bond loans and

credit facilities during 2013

Board of Directors propose a two-step transaction strengthening equity with SEK 1.7 billion

Set-off issue 1

Rights issue 2

» Post transaction – continue to benefit from operating cash flow and development potential inherent in assets

primarily in North Africa and the North Sea

Outcome

14

Current

shareholders Convertible

bondholders

Convertible

bondholders’

share of new issue

Shareholders’ share

of new issue

Current

shareholders

Convertible

bondholders

The set-off issue and fully underwritten rights issue are subject to the underwriting agreement entered into between the company and Carnegie not being

terminated. Carnegie has the right to terminate the agreement, inter alia, if the set-off issue is not subscribed for to such extent that more than 90% of the claim

under the convertible bonds (including accrued interest as at 6 November 2012) is used as payment for the new class B share by way of set-off.

Terms of set-off and rights issue

15

Set-off issue

Rights issue to

current

shareholders

• Set-off of one (1) convertible bond of nominal value including accrued

interest of in total SEK 17.40 for 116 new B shares at SEK 0.15 per share

• Maximum of 7.1 billion new B shares (increase in equity of SEK 1.1

billion)

• Rights issue directed to the current shareholders (holders of A

shares) of approximately SEK 350 million at SEK 0.10 per share

Rights issue to

holders of new B

share

• Rights issue directed to holders of new B shares from set-off issue of

approximately SEK 350 million at 0.10 per share

Set-off issue 1

Rights issue approx. SEK 700 million (assuming 100% acceptance in set-off issue) 2

PA Resources way forward – business plan

16

Operating cash flow

and rights issue proceeds

enables maintenance

investments

» Cash flow from producing assets to finance maintenance investments in the Aseng

and Didon fields

» Strengthened balance sheet, in combination with new debt financing, enables

planned amortizations of bond loans and credit facilities during 2013

Farm-outs to reduce

risk exposure and

future investments

» Work ongoing to reduce interest in certain prioritized assets

• Zarat license in Tunisia (Elyssa, Zarat and Didon)

• 12/06 in Denmark (Broder Tuck and Lille John)

Development of

prioritized assets for

long-term

production growth

» Cash flow from producing fields combined with new debt financing enables

development of prioritized assets – target to develop ~32 mmboe to production

• Zarat and Elyssa in Tunisia

• Broder Tuck and Lille John in Denmark

» Net debt to remain in line with the level following the transactions

Selective exploration

to increase the

resource base

» Selective exploration and appraisal of Block I in EG and Makthar in Tunisia

» Only a few planned commitments

Improved position for

farm-outs and asset

related transactions

» Strengthened balance sheet secures the value of the asset portfolio and improves

the position in future farm-outs and asset related transactions

» Tunisian gas deficit growing – more gas projects required

with Elyssa & Zarat as clear candidates

» Submit Unit Plan of Development by Q1 2013

» Agree unitisation principles with Joint Oil Block

» Actively participate in Government infrastructure initiative

Zarat Field – Largest undeveloped discovery in Tunisia

1992 Discovery

2010-2011 ZRT-N1 Appraisal

1995 Appraisal Well

2011-2012 POD Update, Unitisation

2017/2018 First production

2013-2017 Development

2013 UPOD, UUOA

Gross

Recoverable

Volumes

• c. 80 mmbbl liquids

• c. 600 Bscf gas incl. inerts

• Largest undeveloped discovery in Tunisia

Ownership &

Operatorship

• c. 60% of field lies in Zarat Permit

• c. 40% in Joint Oil Block Unitisation

• Zarat Permit: PA Resources 100%

• Joint Oil Block: Sonde 100%

Subsurface

Aspects

Outlook - Forward Plan

• El Gueria fm reservoir

• 30m oil rim with > 70m rich gas cap

• 40° API oil, 53° API condensate

• Significant inert component in gas

Facilities and

Development

Aspects

Development Concept

• 40,000 bopd initial oil/cond rate first year

• 200 mmscf/d initial raw gas rate

• 9 producer wells, 4 gas injectors

• Objective to maximise liquid recovery

• Plan assumes a 7yr gas recycling phase

• Followed by gas cap blowdown

• 25yr + production life

2005 PA Acquisition

1990 Permit Award

17

18

Zarat Field – Tentative Unitization agreement

RECENT DEVELOPMENT

• Tentative agreement reached on Unitization of Zarat

field reached with Sonde Resources (licence holder

to North Zarat licence)

• Agreement includes principles relating to Unit Area,

Unit Plan of Development Area and Tract Participation

• Unit Plan of Development on track for submission to

Tunisian Authorities by end Q2 2013

• Detailed reservoir technical evaluation undertaken

jointly by PA Resources and Sonde is on-going

• Preliminary results indicate gas recycling option as

a viable production option – allows production of

oil and condensate in advance of gas blow down

• Further announcement once all approvals have

been obtained

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

Licence Group: Operator PA Resouces 100%

ETAP has a back-in right of up to 55%

Zarat field

» Tunisian gas deficit growing – more gas projects

required with Elyssa & Zarat as clear candidates

» Seismic re-interpretation & modeling by end 2012

» Drill appraisal well in 2013

Gross

Recoverable

Volumes

• c. 50 mmboe

• Mainly gas resources

• Small quantity of oil/condensate

Ownership &

Operatorship • PA Resources 100%

Subsurface

Aspects

Outlook - Forward Plan

• Asymmetric anticline structure

• Gas & oil accumulation in Vascus Cherahil

and Bireno reservoirs

• 36-37° API oil

• Low inert, c. 16% assumed

Facilities and

Development

Aspects

Development Concept

• 50 m water depth

• 6 production wells

• Development via tie-back

• c. 3,000 bopd initial oil/cond rate

• c. 120 mmscf/d initial raw gas rate

1974 Discovery

2006/2007 Appraisal Well + ST

1992 Appraisal Well

2010 New 3D Seismic

2016 First Production

2014 POD

2014-2016 Development

2013 ELY-4 Appraisal Well

2005 PA Acquisition

19

Elyssa – Appraisal well in 2013

Denmark 12/06 – 2011 discoveries and way forward PA Resources Operator with 64%

• 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

• Initiated discussions with Maersk for infrastructure tie back

• Assumed production start in 2017

• 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 prospect

• 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

• Initiated discussions with Maersk for infrastructure tie back

• Assumed production start in 2016

20

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

Broder Tuck

Lille John

Reserves and Resources for development

21

MMboe 2P

Reserves

Contingent

Resources

Risked Prospective

Resources

Assets

included

Didon, Azurite, Aseng

liquids, Alen, Zarat field

liquids, DST

Block I, MPS, 12/06,

Marine XIV, Zarat permit,

Netherlands

Block I, Block H, MPS,

Marine XIV, Zarat permit,

Jelma, Makthar, Jenein

Center, Gita, 12/06, Block

8, Netherlands, UK

2011.12.31 60.2 145 409

Present PAR working interest

Tunisia: Zarat 43.9 29.3

Tunisia: Elyssa 42.2

Denmark: Lille John 9.1 9.1

Denmark: Broder Tuck 21.4

Total 43.9 102.2 9.1

Developed Net after farm-out 8.8 21.5 2.2

Prioritised investments/projects 2013-2018

22

2013E 2014E 2015E 2016E 2017E 2018E Total

Farm-out

target

Development Projects

Producing Fields 240 160 140 30 0 0 570

Denmark: 12/06 Field 130 220 310 180 0 0 840 64% to 15%

Tunisia: Zarat Field 210 500 1 060 680 230 0 2 680 100% to 20%

Exploration 110 70 0 0 0 0 180

CAPEX Forecast (MSEK) 690 950 1 510 890 230 0 4 270

PAR Carry Estimate 520 680 970 300 0 0 2 470

Net CAPEX (MSEK) 170 270 540 590 230 0 1 800

• CAPEX forecast

assumes farm-out of

prioritised assets

• Maintenance CAPEX of

producing fields included

*) Assuming farm-outs

Note: Assumes an oil price of 110 USD/bbl, USD/SEK of 6.53 and a discount factor of 10%

Total assets

Production and reserves under development

2013 2014 2015 2016 2017 2018

Reserves*

Reserves in producing fields

(MMBOE) 12.8 10.9 8.9 7.6 6.2 5.0

Reserves in assets to be

developed (MMBOE) 32.5 32.5 32.5 30.3 27.5 23.2

Total 45.3 43.4 41.4 37.9 33.7 28.2

Production (boepd)*

Working interest 6,300 5,300 5,400 9,500 11,500 15,000

0

5

10

15

20

25

30

35

40

2013 2014 2015 2016 2017 2018

Producing Fields Fields to be developed

0

2 500

5 000

7 500

10 000

12 500

15 000

17 500

2013 2014 2015 2016 2017 2018

Producing Fields Fields to be developed

Expected outcome of Business Plan

23

Estimated development of reserves (MMBOE)

Production development (boepd)

HIGHLIGHTS:

• Continued production from currently producing

assets

• Investments in 2013-2015 adds new production

and long-term cash flow – 30 mmboe developed

to production

• Farm-outs critical to reduce risk and capex

• Further investments in 2016-2017

to maintain and add new production

• Planned production start for Lille John and

Elyssa in 2016 followed by Broder Tuck and

Block I in 2017 and Zarat field in 2018

30 MMBOE

2,5 2,4 2,4 2,8

3,6

5,0

1,7 1,8 2,1 2,0

1,2

-0,6

68% 76%

86%

72%

33%

-13%

-2

0

2

4

6

8

2013e 2014e 2015e 2016e 2017e 2018e

-40%

0%

40%

80%

120%

160%

Net

de

bt

an

d e

qu

ity (

SE

Kb

n)

Net d

eb

t/eq

uity

(%)

Equity Net debt Net debt/equity

180

-100

-270

60

840

1,820

-5 000

0

5 000

10 000

15 000

20 000

-500

0

500

1 000

1 500

2 000

2013e 2014e 2015e 2016e 2017e 2018e

Pro

du

ctio

n (b

oe

pd

)

Cash

flo

w (

SE

Km

)

Net cash flow Production

Production and cash flow* development

Expected outcome of Business Plan

24

Net debt development

*) Cash flow post capex, G&A and interest payments

CAPEX forecast – Total and per barrel

25

CAPEX HIGHLIGHTS:

• Development of prioritised key assets and

continued selective exploration activities

• 30 MMBOE to be developed to producing

reserves

• Total capex forecast of SEK 1.8 billion

• Development capex of approx. USD 9/boe

including carry proceeds

CAPEX incl carry proceeds

CAPEX/Produced barrel

0

200

400

600

800

1 000

1 200

1 400

1 600

1 8002010

2011

2012E

2013E

2014E

2015E

2016E

2017E

2018E

MS

EK

0

10

20

30

40

50

60

70

80

2010

2011

2012E

2013E

2014E

2015E

2016E

2017E

2018E

US

D/b

bl

Cost per developed boe incl carry proceeds

Prioritised assets – Value through farm-outs

26

KEY COMMENTS:

• Farm-out of prioritised assets to reach

preferred working interest level and

reduce risk on individual assets

• Value per barrel potential increase from

$4/boe in current book value to $19/boe

on prioritised assets after development

and farm-outs

• Upside potential compared to current

book values in West Africa and North

Sea development assets

• Large portion of value in North African

assets

ASSUMPTIONS FOR VALUATION:

• Reserve data from third party reports

• Business plan as previously presented

Oil price of 110 USD/bbl

• USD/SEK of 6.53

• Cash flow discounted at 10%

Asset valuation before and after farm-outs

*) Producing assets

**) Includes prospective resources

Working

Interest

PAR

Valuation

North Africa (mmboe) (MSEK) (%) (MSEK) (%) (MSEK)

Didon* 100,0% 50,0%

DST* 75,0% 75,0%

Zarat 100,0% 20,0%

Elyssa 100,0% 20,0%

Total 120 2 807 8 300 3 000

West Africa

Azurite* 35,0% 35,0%

Block I* 5,7% 5,7%

Total 13 707 2 100 2 100

North Sea

12/06, Broder Tuck

12/06, Lille John40 384 64,0% 3 100 15,0% 1 100

Total 40 384 3 100 1 100

Exploration assets

Other Assets, incl.

Exploration**441** 1 693 - 2 300 - 2 300

Total 441** 1 693 2 300 2 300

Total 5 591 15 800 8 500

Reserves &

Contingent

Resources Book Value

Current

Working

Interest

Current

PAR

Valuation

After Farm-outs

120 2 807 8 300 3 000

13 707 2 100 2 100

2.3

6.2

8.5

Net debt post

transactions

New equity from

convertible bondholders

Asset valuation – Summary

27

Producing assets Assets to

be developed

Exploration assets

Old equity Upside potential New equity from

rights issue

*) Based on reserve data from third party reports, the business plan as presented on the previous pages, an oil price of 110 USD/bbl,

USD/SEK of 6.53 and a discount factor of 10%

**) Assumes 100% acceptance in the exchange offer

***) Based on a share price of SEK 0.14, i.e. the theoretical share price post transactions

Total equity of SEK ~1.9 billion

2,3 2,3 1.9**

1,6

3,9

1.1**

1,7

2,3

0.7**

0.1***

5,6

8,5

0

2

4

6

8

10

Book values PAR valuationassuming farm-

outs*

Net debt New equity fromconvertible

bondholders

New equity fromrights issue

Old equity** Upside to NAV

Asset valuation Upside potential to business plan

SE

K b

illio

n

Summary and outlook

28

INVESTMENT HIGHLIGHTS:

• Cash flow from current production

• Financial capacity to finance development

capex according to plan and repay/refinance

the SEK bond due in 2013

• Development of existing reserves adding after

farm-out 30 MMBOE for long-term production

growth - expected to result in net cash position

in 2018

• Value in asset portfolio secured and

strengthened position for future farm-outs and

transactions

Thank you! Q1