stärkt finansiell ställning - mb.cision.commb.cision.com/main/790/9405316/115932.pdf · q7/10a...

Interim Report Q1 1 January – 31 March 2013

Group revenue for the first quarter totalled SEK 446 million (650).

EBITDA for the quarter was SEK 242 million (395).

Profit before tax for the quarter was SEK 110 million (68).

A profit of SEK 34 million (-31) was reported for the period.

The completed rights issue raised SEK 604 million for PA Resources, net after

issue costs.

At the end of March, an exploration well was spudded on the Carla South

prospect in Block I in Equatorial Guinea.

After the end of the quarter, PA Resources was granted an additional 50% of the

Mer Profonde Sud licence in the Republic of Congo, and the licence was extended,

which will enable further evaluation of the area.

FINANCIAL KEY RATIOS

Q1 2013 Q1 2012 Jan.-Dec. 2012

Revenue (SEK million) 446 650 2,184

EBITDA (SEK million) 242 395 1,255

EBITDA margin 54.4% 60.8% 57.5%

Operating profit (SEK million) * 169 214 684

Operating margin * 37.8% 33.0% 31.3%

Profit before tax (SEK million) * 131 68 85

Profit for the period 34 -31 -1,966

Earnings per share after dilution (SEK) 0.003 -0.04 -1.93

*Figures for the three-month period 2013 exclude non-cash, one-off costs of SEK 21 million (0) before and after tax.

Figures for the full year 2012 exclude non-cash, one-off costs of SEK 1,748 million before and after tax.

SUMMARY

PA RESOURCES INTERIM REPORT Q1 2013

2

PA Resources reported a net profit for the first quarter.

Although production was somewhat lower, earnings in the

first quarter again benefited from a high average oil price of

USD 113 per barrel and from very profitable production,

with frequent deliveries from the Aseng field in Equatorial

Guinea. In early April, the Aseng field began coming off its

plateau oil production rates, which have persisted beyond

initial expectations. The field is being restricted somewhat

by the production vessel's capacity to handle produced gas,

and the operator is now evaluating the scope to expand the

capacity, which could lead to increased oil volumes.

The lower level of production is mainly due to uneven

and instable flows from several of the wells on the Azurite

field, and work on evaluating the field's future continues.

At the end of March, a drilling campaign commenced in

Block I on the Carla South prospect, where the Aseng field

and the soon fully developed Alen field are located. The

drilling campaign also includes an appraisal well and the

earlier Diega discovery, where drilling is planned later in the

year.

After the end of the quarter, the operator of the Mer

Profonde Sud licence in the Republic of Congo relinquished

its interest, entailing that PA Resources' working interest

has increased from 35% to 85%. In connection with this, the

licence was extended, which will enable further evaluation

of the area's remaining exploration potential as well as

farm-out discussions.

Capital expenditures during the first quarter amounted to

SEK 58 million, and the forecast of SEK 250–380 million for

the full year 2013 continues to apply. At present it provides

scope for operational expenditures in producing fields, the

drilling campaign in Block I in Equatorial Guinea, and a

drilling campaign on licence 12/06 in Denmark. The forecast

has not been adjusted for any farm-outs of assets, and if

such occur, PA Resources' share of the investments will be

lower.

In early February the recapitalisation process was con-

cluded, which raised SEK 604 million for PA Resources

after issue costs, and at the close of the quarter, sharehold-

ers' equity amounted to SEK 2,200 million. Net debt amoun-

ted to approximately SEK 2,100 million at the end of the first

quarter – a level that was communicated in connection with

the recapitalisation.

PA Resources' primary focus in the coming quarter is to

secure refinancing of the bond loan that matures in the

autumn and to continue efforts to reduce the Company's

interests in Tunisia and Denmark. In line with the Compa-

ny's business plan, development of prioritised assets will

require reduced ownership interests in order to better bal-

ance the risk in individual projects and reduce the size of

investments. Hence a farm-out combined with the strength-

ened balance sheet is an important next step in PA

Resources' business plan.

Bo Askvik, President and CEO, PA Resources

An exploration well was spudded in late March on the

Carla South prospect in Block I in Equatorial Guinea.

Business concept

PA Resources’ business consists of the acquisition, devel-

opment, extraction and divestment of oil and gas reserves,

and exploration for new reserves. Production of oil gener-

ates important cash flow that enables the investments

required to increase the Group’s reserves and thus share-

holder value. Geographically, PA Resources focuses on

three regions: North Africa, West Africa, and the North Sea

including Greenland.

Business model

PA Resources conducts exploration activities to increase its

oil and gas resources, and appraisal activities determine if

discoveries are profitable to develop for production. Cash

flow from producing fields is reinvested in exploration,

appraisal and development activities. The business model,

based on cash flow combined with balanced external fi-

nancing, builds a foundation for profitable and long-term

growth in production.

Strategic focus

Activities and investments are focused on appraising and

developing a number of the Company's prioritised assets.

Parallel with this, the goal is to reduce ownership interests

in an effort to lower the level of risk as well as investments.

On top of this, the Company conducts active and selective

exploration activities to further expand the company’s dis-

covered resources base.

CEO’S COMMENTS

IMPORTANT EVENTS DURING THE QUARTER

PA RESOURCES IN BRIEF


3

THREE-MONTH PERIOD (1 JANUARY–31 MARCH)

Production and sales

PA Resources' total oil production amounted to 608,300

(792,200) barrels during the first quarter. Average produc-

tion was 6,800 barrels per day (8,700). The Aseng field and

the Azurite field in the West Africa region produced 4,800

barrels per day (6,200), and four oil fields in the North Africa

region produced 2,000 barrels per day (2,500).

Production in March 2013 totalled 6,600 barrels per day

(8,200).

Production is based on working interest, which is PA Re-

sources' share of total gross production before deductions

for royalty and other taxes.

Average production per quarter (barrels per day)

A total of 463,100 barrels of oil (546,000) were sold during

the quarter, excluding royalties. The average sales price

was USD 113 per barrel (120) to compare with the average

Brent price also amounting to USD 113 per barrel (119).

Oil inventory including royalty and other taxes increased

during the period by 60,247 barrels and was 315,843 bar-

rels at the end of the period. Total oil inventory as per the

balance sheet date is stated at fair value and is reported as

if the inventory had been sold.

Sales vary from quarter to quarter and depend on when

inventory has been filled up and customers collect the

agreed upon volume.

Average sales price per quarter (USD per barrel)

Drilling programme

PA Resources has a few firm drilling commitments in the

coming two years. Some of these are dependent on the

availability of rigs or the farm-out of interests to a partner.

Drilling on the Carla South prospect in Block I in Equatorial

Guinea commenced late in the first quarter.

Licence Field/Prospect Time Well/Number

Tunisia

Zarat Elyssa* 2013/2014 Appraisal/1

Makthar 2014 Exploration/1

Equatorial Guinea

Block I Carla South Ongoing Exploration/1

Block I Diega 2013 Appraisal/1

Block H 2013 Exploration/1

Denmark

12/06 Lille John 2013/2014 Appraisal/

Exploration/1-2

Netherlands

Q7/10a Q7-FA 2013/2014 Appraisal/

Development/1

*The well is contingent upon a farm-out of the Zarat licence.

The drilling programme is revised continuously based on the capex budget and

prioritised commitments.

Capital expenditures 2013

Capital expenditures during the first quarter totalled SEK 58

million. Most of these pertained to investments in connec-

tion to the sidetrack on the Azurite field. The remainder

pertained to development investments in the Aseng and

Alen fields (also belonging to the West Africa region) and

small investments in preparation for exploration in the North

Sea region.

The forecast of SEK 250–380 million for the full year

2013 continues to apply. At present it includes investments

in producing fields, the drilling campaign on Block I in Equa-

torial Guinea, and a possible drilling campaign on licence

12/06 in Denmark. The forecast has not been adjusted for

any farm-outs of assets, which would reduce PA Re-

sources' level of capital expenditures.

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Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

97

109 106 104

120

109 109 106 113

106

117 113 109 119

108 109 110 113

20

40

60

80

100

120

140

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PA Resources Brent

OPERATIONAL OVERVIEW


4

NORTH SEA REGION AND GREENLAND

Concession/licence Operator Partners United Kingdom

1 Block 22/19a PA Resources (50%) First Oil and Gas (50%)

Denmark

2 Block 9/06 (Gita) Maersk Olie og Gas (31.2%) PA Resources (26.8%), Nordsøfonden (20%), Noreco (12%), Danoil (10%)

3 Block 12/06 PA Resources (64%) Nordsøfonden (20%), Spyker Energy (8%), Danoil (8%)

Netherlands

4 Block Q7 Smart Energy Solutions (30%) Energie Beheer Nederland (40%), PA Resources (30%)

5 Block Q10a Smart Energy Solutions (30%) Energie Beheer Nederland (40%), PA Resources (30%)

6 Schagen Smart Energy Solutions (30%) Energie Beheer Nederland (40%), PA Resources (30%)

Germany

7 B20008-73 PA Resources (90%) Danoil (10%)

Greenland

8 Licence 2008/17 (Block 8)

PA Resources (87.5%) NunaOil (12.5%)

NORTH AFRICA REGION

Concession/licence Operator Partners Tunisia

1 Douleb PA Resources (70%)* Serept (30%)

2 Semmama PA Resources (70%)* Serept (30%)

3 Tamesmida PA Resources (95%)* Serept (5%)

4 Didon PA Resources (100%)

5 Jelma** PA Resources (70%) Topic (30%)

6 Makthar** PA Resources (100%)

7 Zarat** PA Resources (100%)

8 Jenein Centre*** Chinook Energy (65%) PA Resources (35%)

* Operatorship outsourced to Serept.

** ETAP has the right to take a 50% interest in the Jelma licence and 55% in the Makthar and Zarat licences once discoveries have

been made on the respective licences and a development plan has been submitted. Until such time, ownership is shared as shown above.

*** ETAP is the sole licence holder, but has signed a production-sharing agreement with PA Resources and Chinook Energy.

WEST AFRICA REGION

Concession/licence Operator Partners Republic of Congo (Brazzaville) 1 Azurite* Murphy (50%) PA Resources (35%), SNPC (15%)

2 Mer Profonde Sud* PA Resources (85%) SNPC (15%)

Equatorial Guinea 4 Asen** Noble Energy (38%) Atlas Petroleum (27.55%), Glencore (23.75%),

PA Resources (5.7%), GEPetrol (5%) 5 Alen*** Noble Energy (44.65%) GEPetrol (28.75%), Glencore (24.94%), Atlas Petroleum

(1.38%), PA Resources (0.29%), 6 Block I** Noble Energy (38%) Atlas Petroleum (27.55%), Glencore Exploration

(23.75%), PA Resources (5.7%), GEPetrol (5%) 7 Block H** White Rose Energy (46.31%) Atlas Petroleum (23.75), Roc Oil (19%),

PA Resources (5.94%), GEPetrol (5%) * Participating interests are reported inclusive of the rights to participating interests of the state-owned company SNPC.

** Participating interests are reported from and including 2011 inclusive of the rights to participating interests of the state-owned

company GEPetrol.

*** 95% of the Alen field is located in Block O and 5% in Block I. PA Resources has a 5.7% working interest in Block I,

which provides 0.285% of the field in total.


5

The region contains the two producing fields Azurite in the

Republic of Congo (Brazzaville) and Aseng in Equatorial

Guinea. In Equatorial Guinea, development of the Alen

field is also under way, with planned start of production in

the third quarter of 2013. PA Resources owns interests in

two production licences, one development licence and

three exploration licences.

Production and activities at the Azurite field

Production from the Azurite field has been impacted

by intermittent well instability, which has caused tem-

porary outages on the multi-phase pump used to lift

produced fluids to the production vessel. This instabil-

ity is likely to continue in the foreseeable future. The

operator continues to assess the Azurite field’s way

forward.

Production at the Aseng field

Production at the Aseng field averaged approximately

60 million barrels per day during the first quarter. In

early April, the Aseng field began coming off plateau

oil production rates, which have persisted beyond ini-

tial expectations. Oil production was also slightly re-

duced due to limitations on the gas handling capacity.

Work is ongoing to assess the scope to increase gas

handling capacity, which if realised may allow for in-

creased oil production rates.

Alen development

The Alen field development project in Block I in Equa-

torial Guinea is now nearing completion. Fabrication

is complete, and all modules have been transported

to EG and successfully installed such that hook-up

activities are now under way. The project remains on

track for expected first production in the third quarter

of 2013. Expectations remain that the total cost will

be at or below the sanctioned budget.

Block I drilling campaign

An exploration well was spudded late in the first quar-

ter on the Carla South prospect, on a trend proven by

the 2011 Block O Carla North discovery. The target is

Tertiary sandstone of similar age to that in the dis-

covery to the north, and the well is expected to take

around 25 days to reach total depth, with plans for a

subsequent sidetrack of similar duration. In addition,

an appraisal well on the Diega accumulation will also

be drilled in 2013.

MPS extension

The operator of the MPS exploration area has with-

drawn from the exploration area following an unsuc-

cessful well drilled in a licence block to the north. PA

Resources’ working interest hereby increases from 35

to 85%. PA Resources believes that the MPS explo-

ration area retains exploration prospectivity and has

secured an extension until November 2013 from the

authorities to allow time for the completion of subsur-

face studies and to attract a new partner(s) for con-

tinued exploration.

PA Resources has been operating in Tunisia since 1998,

with substantial oil production. The Group has interests in

four producing fields, of which Didon is the largest, as well

as in four exploration licences. PA Resources is the opera-

tor of seven of the licences.

Production at Didon

During the first quarter of 2013, the Didon field contin-

ued to produce primarily from two of the field's central

wells and intermittently from the two eastern wells.

Production onshore

Production on one of the small onshore fields in Tuni-

sia was impacted by a delay in gaining access for a

well intervention. The work was successfully complet-

ed in March.

Evaluation of Jelma and Makthar

The evaluation of the Jelma and Makthar licences’ po-

tential was finalised, the areas of interest ranked and

the 2013 work programme defined. A tender was

submitted to acquire about 500 km of 2D seismic sur-

vey over prospects in the Makthar licence to define a

future prospect inventory for further activity.

Ongoing farm-out of Zarat licence

The process of farming out ownership interests in the

Zarat licence continued with activities and discussions

in the first quarter.

Zarat field modelling

The work with the joint plan of development continued

with the target to be submitted to the Tunisian authori-

ties for approval at the end of the second quarter of

2013. A detailed technical review of the reservoir

modelling is being conducted jointly by PA Resources

and ETAP. Various production schemes are being

considered, including re-injection of gas to allow for

the production of oil and condensate for a period be-

fore the commencement of gas sales.

Evaluation of the Zarat licence and Elyssa field

Interpretation of the latest processed seismic data for

the entire Zarat licence was finalised in the fourth

quarter 2012. The maturation for a possible appraisal

well on the Elyssa field has started, and the final re-

ports are under preparation. The plan is to drill the ap-

praisal well in late 2013 or early 2014, however, this is

contingent upon a successful farm-out of the Zarat li-

cence.

WEST AFRICA REGION

NORTH AFRICA REGION


6

PA Resources conducts exploration activities in the UK,

Denmark, the Netherlands, Germany and offshore western

Greenland. No production comes from this region. PA

Resources is the operator of four out of a total of eight

licences, including the Danish licence 12/06, where the two

discoveries Broder Tuck and Lille John were made in 2011.

Work programme on Danish licence 12/06

Efforts to locate an available rig for further drilling on

Danish licence 12/06 continue, with the priority being

the appraisal of the Lille John discovery. Studies con-

tinue to evaluate development options for the Broder

Tuck field, focused on two main development con-

cepts. Commercial discussions with pipeline owners

and the host infrastructure owner will continue towards

a year-end decision on either appraisal drilling or to

advance to detailed engineering design for field devel-

opment.

UKCS Block 22/19a

Formal award of a licence covering Block 22/19a is still

awaited. The block contains the undeveloped Fiddich

gas/condensate field, discovered in 1984, and studies

have now commenced to assess the field for future

appraisal drilling. PA Resources now expects to hold a

100% interest in the licence.

Seismic analysis of German licence B20008/73

Evaluation of the block is progressing on the existing

3D dataset.

Risks and uncertainties

No changes took place in PA Resources' operational,

financial and socio-political risks during the first quarter of

2013. These are described in the 2012 Annual Report,

published on 22 March 2013, in the section Risks and Risk

Management.

Risks in the near term include possible disruptions in

production at producing fields. Other risks concern drilling,

maintenance and installations, and delays in development

projects. The current political situation in North Africa is

difficult to assess and may have an impact on the Compa-

ny’s operations.

Nomination Committee ahead of 2013 AGM

PA Resources' Nomination Committee includes the follow-

ing members:

Sven A. Olsson (Gunvor Group Ltd), Chairman of the

Nomination Committee

Bengt Stillström (AB Traction)

Göran Ågerup (Ågerup Fastigheter)

Hans Kristian Rød, Chairman of the Board

The Nomination Committee’s proposal regarding the board

of directors, election of auditors, remuneration and more

will be published ahead of the AGM on 14 May 2013.

Annual General Meeting 2013 to be held 14 May

PA Resources' Annual General Meeting will be held at 4

p.m. on Tuesday, 14 May 2013, at Polstjärnan, Sveavägen

77, Stockholm. The last day to notify the Company of

intention to attend the AGM is Tuesday, 7 May 2013. For

notification, the AGM notice and other information ahead of

the AGM, visit www.paresources.se.

Proposed dividend

The Board of Directors proposes to the Annual General

Meeting that no dividend be paid for the 2012 financial

year.

Largest shareholders

As per 28 March 2013 Capital/votes

GUNVOR GROUP LTD 9.9%

AVANZA PENSION 6.8%

CREDIT AGRICOLE (SUISSE) SA 3.8%

AB TRACTION 3.0%

NORDNET PENSIONSFÖRSÄKRING AB 2.8%

ÅGERUP FASTIGHETER AB 2.7%

LUX-NON-RESIDENT/DOMESTIC RATES 1.9%

JP MORGAN BANK 1.7%

SEB S.A. 1.7%

ORIGINAT AB 1.4%

10 largest shareholders 35.7%

Other shareholders 64.3%

The Company's largest owner as per the end of March

2013 was Gunvor Group Ltd, which increased its holding

to 9.9%.

NORTH SEA REGION AND GREENLAND

OTHER INFORMATION

http://www.paresources.se/


7

Events after the end of the reporting period

Reverse share split and minor new share issue

An Extraordinary General Meeting on 9 April 2013 re-

solved in favour of a reverse share split, entailing the

consolidation of 500 existing shares into one share. The

record date was determined to 2 May 2013 which means

that Friday 26 April is the last day that shares can be

traded before the reverse split and Monday 29 April will be

the first day of trading after the reverse split.

Shareholdings will be rounded off downward, and every

500 shares held as per the record date will be consolidated

into one share. Any excess shares will come under the

Company's ownership and will thereafter be sold. The

proceeds from these sales will be distributed among the

shareholders who owned the excess shares.

For purely administrative reasons in order to achieve as

even a number of shares as possible to carry out the

reverse split, the meeting decided to issue 28 new shares

to a subscription price of SEK 0.10 per share, which will be

subscribed for by Carnegie Investment Bank AB. Following

the reverse split and the minor rights issue, the total num-

ber of shares in PA Resources amounts to 28,291,998. For

further information, see the press release dated 22 April

2013.

This report has not been reviewed by the Company's

auditors.

PA Resources AB (publ.)

Stockholm, 24 April 2013

Bo Askvik President and CEO

Queries concerning this report can be directed to:

Bo Askvik, President and CEO

+46 8 545 211 50

[email protected]


8

THREE-MONTH PERIOD (1 JANUARY–31 MARCH)

Revenues, expenses and EBITDA

Group revenue during the period amounted to SEK 446

million (650). Revenue decreased mainly as a result of

lower production compared with the corresponding period

a year ago. Revenue was also affected by a lower sales

price and by currency effects of a weaker US dollar. Costs

for raw materials and consumables including royalties

decreased to SEK 171 million (209). The royalty cost was

SEK 51 million (76). Royalties decreased mainly as a

result of lower production, while the royalty percentages

were unchanged.

EBITDA (earnings before interest, tax, depreciation,

amortisation and impairment) amounted to SEK 242 million

(395), and the EBITDA margin was 54% (61%).

Depreciation, amortisation, impairment and operating

profit

Depreciation and amortisation during the period decreased

to SEK 74 million (181), mainly owing to lower production

compared with the corresponding period a year ago. De-

preciation and amortisation per produced barrel was lower

compared with the corresponding period a year ago, main-

ly due to the recognition of impairment charges for the

Azurite field during the third quarter of 2012. Currency

effects reduced the cost of depreciation and amortisation.

One-off items for the period amounted to SEK 21 million

(0) and pertain to remaining costs for investments in the

Azurite field, which were expensed since the residual value

of the entire field was written down during the third quarter

of 2012.

Operating profit amounted to SEK 169 million (214) ex-

cluding one-off costs and SEK 148 million (214) including

one-off costs. The operating margin excluding one-off

costs was 38% (33%) for the period.

Net financial items, tax and profit for the period

Net financial items for the Group amounted to SEK -37

million (-147) during the period. Currency effects impacted

net financial items positively by SEK 45 million (-1). Com-

pared with the preceding year, net financial items were

favourably affected mainly by the extinguishing of 90% of

the convertible bond during the fourth quarter of 2012.

Profit before tax excluding one-off costs was SEK 131

million (68).

Tax on profit for the period amounted to SEK -77 million

(-99). Paid tax for the period totalled SEK 54 million (3).

Earnings per share before and after dilution were SEK

0.003 (-0.04).

Cash flow and financial position

Operating cash flow for the period was SEK -70 million

(175), mainly owing to a decrease in accounts payable and

other liabilities during the period, by SEK -258 million.

Accounts payable and other liabilities amounted to SEK

316 million at the end of the period, compared with SEK

574 million at year-end 2012. The decrease is mainly

attributable to payments made in connection with the

termination of the planned sidetrack on the Azurite field.

Total capital expenditures for the period amounted to

SEK 58 million (32). The forecast of SEK 250– 380 million

for the full year 2013 continues to apply. Of capital expend-

itures during the period, SEK 48 million (21) pertained to

investments in the West Africa region.

During the period, a net total of SEK 245 million (13) in

debt was amortised, and net cash flow after financing and

capital expenditures was SEK 231 million (131).

As per 31 March 2013 the Group had net borrowings of

SEK 2,111 million and a debt/equity ratio of 95.9%, com-

pared with SEK 2,630 million and 165.4%, respectively, at

year-end 2012.

Cash and cash equivalents amounted to SEK 288 mil-

lion (174) at the end of the period.

Shareholders' equity decreased by SEK 611 million dur-

ing the period, mainly as a result of the completed rights

issue totalling SEK 604 million, net after issue costs.

Shareholders' equity was negatively affected by exchange

differences of SEK 26 million and amounted to SEK 2,201

million at the end of the period, compared with SEK 1,590

million at year-end 2012.

This means that the Company has met the financial

covenants for its bond loans, entailing a reclassification of

the current portion of interest-bearing loans and liabilities,

totalling SEK 932 million, to non-current interest-bearing

loans and liabilities.

Parent company

The parent company's revenue pertains mainly to intra-

Group sales and amounted to SEK 8 million (7) during the

period. Net financial items for the period amounted to SEK

6 million (-279). Currency effects on net financial items

totalled SEK 45 million (-180).

Profit after tax for the period was SEK 1 million (-282).

Shareholders' equity at the end of the period amounted

to SEK 3,281 million, compared with SEK 2,676 million at

year-end 2012. The increase is mainly attributable to the

completed rights issue, totalling SEK 604 million, net after

issue costs.

FINANCIAL OVERVIEW


9

Group – income statement

SEK 000s Notes Jan.-March 2013 Jan.-March 2012 Jan.-Dec. 2012

Revenue 3, 5 445,902 649,800 2,183,527

Cost of sales 4 -170,746 -208,939 -750,409

Other external expenses -18,989 -29,598 -110,859

Personnel expenses -13,795 -15,952 -66,824

Depreciation, amortisation and impairment losses * 5 -94,611 -180,843 -2,319,144

Operating profit 5 147,761 214,468 -1,063,709

Financial income 6 47,786 1,400 5,503

Financial expenses 6 -85,194 -147,986 -604,820

Total financial items -37,408 -146,586 -599,317

Profit before tax 110,353 67,882 -1,663,026

Income tax 7 -76,540 -99,106 -302,719

Profit for the period * 33,813 -31,224 -1,965,745

Profit for the period attributable to:

Owners of the parent 33,813 -31,224 -1,965,745

Earnings per share before dilution 0.003 -0.04 -1.93

Earnings per share after dilution 0.003 -0.04 -1.93

Earnings per share are attributable to owners of the parent.

*Figures for the three-month period 2013 include one-off costs of SEK 20,902 thousand before and after tax. Figures for the full year 2012 include

one-off costs of SEK 1,747,674 thousand before and after tax.

Group – statement of comprehensive income


Profit for the period 33,813 -31,224 -1,965,745

Other comprehensive income

Items that may be reclassified to profit or loss

Exchange differences during the period -26,370 -223,217* -228,690

Total items that may be reclassified to profit or loss

-26,370 -223,217 -228,690

Other comprehensive income for the period -26,370 -223,217* -228,690

Total comprehensive income for the period 7,443 -254,441 -2,194,435

Total comprehensive income for the period attributable to:

Owners of the parent 7,443 -254,441 -2,194,435

*See note 2, Accounting policies.


10

Group – statement of financial position

SEK 000s Notes 31 March 2013 31 March 2012 31 Dec. 2012

ASSETS

Exploration and evaluation assets 2 3,376,462 4,080,967* 3,398,281

Oil and gas assets 2 2,058,474 3,359,355* 2,125,970

Machinery and equipment 4,210 13,753* 4,381

Financial assets 8 1,030 1,417 1,055

Deferred tax assets 7 103,737 0 103,412

Total non-current assets 5,543,913 7,455,492 5,633,099

Inventory 31,506 57,138 30,871

Accounts receivable and other receivables 8 628,073 793,521 713,919

Current tax assets 7 3,344 3,377 3,076

Cash and cash equivalents 8 287,527 174,490 57,631

Total current assets 950,450 1,028,526 805,497

Assets held for sale 13 0 27,285 0

TOTAL ASSETS 6,494,363 8,511,303 6,438,596

EQUITY

Equity attributable to owners of the parent

Share capital 1,414,600 318,738 709,325

Other capital contributions 9 4,240,278 3,764,144 4,341,929

Reserves -1,115,014 -1,083,171* -1,088,644

Retained earnings and profit for the period -2,338,540 -437,832* -2,372,353

Total equity 2,201,324 2,561,879* 1,590,257

LIABILITIES

Interest-bearing loans and borrowings 8, 9 1,096,223 3,131,289 399,832

Deferred tax liabilities 7 682,109 692,276* 700,870

Provisions 10 655,816 558,121 633,948

Total non-current liabilities 2,434,148 4,381,686* 1,734,650

Provisions 0 8,077 0

Current tax liabilities 240,792 126,240 252,172

Current interest-bearing loans and borrowings 8 1,302,293 846,013 2,287,978

Accounts payable and other liabilities 8 315,806 581,138 573,539

Total current liabilities 1,858,891 1,561,468 3,113,689

Liabilities pertaining to assets held for sale 13 0 6,270 0

TOTAL EQUITY AND LIABILITIES 6,494,363 8,511,303 6,438,596

PLEDGED ASSETS 15 577,277 1,284,322 733,044

CONTINGENT LIABILITIES 15 14,000 14,000 14,000

*See note 2, Accounting policies.


11

Group – statement of changes in equity

Equity attributable to owners of the parent

SEK 000s Notes Share capital Other capital contribution Reserves

Retained earnings and profit for the

period Total

Balance at 1 January 2012 318,738 3,764,144 -859,954* -406,608* 2,816,320

Total comprehensive income for the

period -223,217* -31,224 -254,441

Closing balance at 31 March 2012 318,738 3,764,144 -1,083,171* -437,832* 2,561,879

Balance at 1 April 2012 318,738 3,764,144 -1,083,171* -437,832* 2,561,879

Total comprehensive income for the period

-5,473 -1,934,521 -1,939,994

Transactions with shareholders

Redemption of convertible shares 9 1 5 6

Reduction of share capital -254,991 254,991 0

Set-off issue 645,577 322,789 968,366

Closing balance at 31 December 2012 709,325 4,341,929 -1,088,644 -2,372,353 1,590,257

Balance at 1 January 2013 709,325 4,341,929 -1,088,644 -2,372,353 1,590,257

Total comprehensive income for the period

-26,370 33,813 7,443

Transactions with shareholders

Rights issue 705,275 -101,651 603,624

Closing balance at 31 March 2013 1,414,600 4,240,278 -1,115,014 -2,338,540 2,201,324

The share capital as per 31 March 2013 was distributed among 14,145,998,972 A-shares with a share quota value of SEK 0.10. No dividend was

decided on for the 2011 financial year or previous financial years. The Board of Directors proposes to the Annual General Meeting that no dividend

be paid for the 2012 financial year. Reserves pertain to effects from translation of operations in foreign currency.

*Adjustment of opening balance pertains to retrospective adjustments related to previously unreported deferred tax liabilities in Tunisia. For further

information, see note 2, Accounting policies.


12

Group – statement of cash flows


Cash flow from operating activities

Income after financial items 110,353 67,882 -1,663,026

Adjustments for non-cash items 88,042 157,165 2,540,015

Income tax paid -53,789 -3,249 -5,134

Total cash flow from operating activities

before changes in working capital 144,606 221,798 871,855

Cash flow from changes in working capital

Change in inventory -623 -424 367

Change in receivables 16,260 90,720 296,369

Change in liabilities -230,574 -137,201 -330,311

Cash flow from operating activities -70,331 174,893 838,280

Cash flow from investing activities

Investments in exploration and evaluation assets 5 -9,558 -13,982 -48,157

Investments in oil and gas assets 5 -48,175 -17,576 -206,785

Investments in machinery and equipment 5 -219 0 -75

Cash flow from investing activities -57,952 -31,558 -255,017

Cash flow from financing activities

New share issue 603,624 0 0

Loans raised 0 128,706 196,151

Amortisation of debt -244,645 -141,286 -764,320

Cash flow from financing activities 358,979 -12,580 -568,169

Cash flow for the period 230,696 130,755 15,094

Cash and cash equivalents at the beginning of period 57,631 44,465 44,465

Exchange rate difference in cash and cash equivalents -800 -730 -1,928

Cash and cash equivalents at end of period 287,527 174,490 57,631

Adjustments for non-cash items

Depreciation, amortisation and impairment losses 94,611 180,843 2,319,144

Valuation oil sales -54,271 -145,357 -154,080

Other items including accrued interest and exchange differences (net)

47,702 121,679 374,951

Total 88,042 157,165 2,540,015


13

Parent company – income statement


Revenue 7,857 7,343 28,128

Other external expenses 11 -7,093 -5,141 -32,493

Personnel expenses -5,409 -5,450 -19,978

Depreciation, amortisation and impairment losses -5 -30 -95

Operating profit -4,650 -3,278 -24,438

Result from participations in Group companies 14 0 0 -36,023

Financial income and similar 6, 8 73,028 25,547 101,783

Financial expenses and similar 6, 8 -67,305 -304,421 -868,941

Total financial items 5,723 -278,874 -803,181

Profit before tax 1,073 -282,152 -827,619

Income tax 7 325 3,394 136,293

Profit for the period 1,398 -278,758 -691,326

Parent company – statement of comprehensive income


Profit for the period 1,398 -278,758 -691,326

Other comprehensive income

Total items that may be reclassified to profit or loss

0 0 0

Total other comprehensive income for the period 0 0 0

Total comprehensive income for the period 1,398 -278,758 -691,326


14

Parent company – balance sheet

SEK 000s Notes 31 March 2013 31 March 2012 31 Dec. 2012

ASSETS

Exploration and evaluation assets 2, 5 92,038 89,787 91,543

Machinery and equipment 0 71 6

Financial assets 12 6,483,130 7,665,674 6,224,592

Total non-current assets 6,575,168 7,755,532 6,316,141

Current tax assets 1,252 1,252 984

Other receivables 3,709 2,166 2,048

Prepaid expenses and accrued income 23,809 17,152 113,423

Cash and cash equivalents 273,711 160,731 16,134

Total current assets 302,481 181,301 132,589

TOTAL ASSETS 6,877,649 7,936,833 6,448,730

SHAREHOLDERS' EQUITY

Restricted equity

Share capital 1,414,600 318,738 709,325

Statutory reserve 985,063 985,063 985,063

Total restricted equity 2,399,663 1,303,801 1,694,388

Non-restricted equity

Share premium reserve 9 2,969,859 2,748,716 3,071,510

Profit/loss brought forward and profit for the period -2,088,479 -1,932,300 -2,089,877

Total non-restricted equity 881,380 816,416 981,633

Total shareholders' equity 3,281,043 2,120,217 2,676,021

LIABILITIES

Liabilities Group companies 1,343,386 2,664,383 1,334,712

Interest-bearing loans and borrowings 9 1,096,223 2,935,973 350,965

Deferred tax liability 0 29,487 0

Total non-current liabilities 2,439,609 5,629,843 1,685,677

Accounts payable 2,037 2,717 3,030

Other liabilities 426 1,144 376

Current interest-bearing loans and liabilities 1,057,915 62,899 1,936,110

Accrued expenses and prepaid income 96,619 120,013 147,516

Total current liabilities 1,156,997 186,773 2,087,032

TOTAL SHAREHOLDERS' EQUITY AND LIABILI-TIES

6,877,649 7,936,833 6,448,730

PLEDGED ASSETS 15 570,168 1,273,782 726,489

CONTINGENT LIABILITIES 15 14,000 14,000 14,000


15

Key ratios

FIVE-YEAR OVERVIEW

31 March 2013*** 31 March 2012 31 Dec. 2012*** 31 Dec. 2011*** 31 Dec. 2010 31 Dec. 2009 31 Dec. 2008

Revenue SEK 000s 445,902 649,800 2,183,527 2,153,808 2,226,732 2,112,841 2,419,863

EBITDA SEK 000s 242,372 395,311 1,255,435 1,295,250 1,275,676 1,325,877 1,771,823

Operating profit SEK 000s 147,761 214,468 -1,063,709 -1,526,609 490,424 429,601 1,395,749

Operating profit excluding one-off costs

SEK 000s 168,663 214,468 683,965 508,057 490,424 429,601 1,395,749

Operating profit per share after dilution**

SEK 0.01 0.28 -1.05 -1.96 0.77 1.10 3.80

Operating margin 33% 33% -49% -71% 22% 20% 58%

Operating margin excluding one-off costs

38% 33% 31% 24% 22% 20% 58%

Income after financial items per share after dilution**

SEK 0.01 0.09 -1.63 -2.41 0.28 0.81 2.24

Earnings per share after dilution**

SEK 0.003 -0.04 -1.93 -2.67 -0.50 0.03 2.52

Return on equity 4.46% neg neg neg neg 0.28% 23.93%

Return on assets 5.96% neg neg neg 5.13% 5.00% 16.30%

Return on capital employed 8.78% neg neg neg 6.06% 6.33% 19.47%

Equity per share before dilution**

SEK 0.16 3.29 0.18 3.61 6.17 9.92 12.97

Equity per share after dilution**

SEK 0.16 3.29 0.18 3.61 6.17 9.92 12.93

Profit margin 24.7% 10.4% -76.2% -87.1% 8.1% 15.0% 34.0%

Equity/assets ratio 33.9% 30.1% 24.7% 31.7% 44.1% 40.3% 45.5%

Debt/equity ratio 95.9% 148.4% 165.4% 141.4% 65.2% 95.7% 74.8%

Share price at end of period* SEK 0.06 2.12 0.20 2.12 7.50 11.93 5.58

Share price/Equity per share before dilution*

Times 0.39 0.64 1.09 0.59 1.22 1.20 0.43

P/E margin per share* Times 19.96 -52.92 -0.10 -0.79 -15.12 360.95 2.21

Number of shares outstand-ing before dilution**

Number 14,145,998,972 779,412,666 8,672,576,740 779,412,666 779,411,382 422,811,264 366,757,076

Number of shares outstand-ing after dilution**

Number 14,145,998,972 779,412,666 8,672,576,740 779,412,666 779,411,382 422,811,264 367,787,796

Average number of shares outstanding before dilution**

Number 11,246,534,652 779,412,666 1,017,289,049 779,411,703 637,753,524 390,023,977 366,095,465

Average number of shares outstanding after dilution**

Number 11,246,534,652 779,412,666 1,017,289,049 779,411,703 637,753,524 390,023,977 367,590,033

QUARTERLY OVERVIEW

Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011

Revenue SEK 000s 445,902 466,801 524,853 542,073 649,800 534,717 493,720 542,189

Operating profit SEK 000s 147,761 9,003 -1,343,606 56,426 214,468 -1,913,273 101,242 145,528

Operating profit excluding one-off costs

SEK 000s 168,663 178,229 151,777 148,257 214,468 121,393 101,242 145,528

Operating margin 33.1% 1.9% -256.0% 10.4% 33.0% -357.8% 20.5% 26.8%

Operating margin excluding one-off costs

37.8% 38.2% 28.9% 27.4% 33.0% 22.7% 20.5% 26.8%

Earnings per share after dilution**

SEK 0.003 -0.20 -1.78 -0.27 -0.04 -2.38 -0.15 -0.21

Return on equity 0.07 neg neg neg neg neg neg neg

Return on assets 9.33% 0.68% neg 2.8% 9.4% neg 4.1% 6.2%

Return on capital employed

13.60% 1.01% neg 3.7% 11.7% neg 5.2% 7.6%

Equity per share before dilution**

SEK 0.16 0.18 1.23 3.35 3.29 3.61 6.02 5.41

Equity per share after dilution**

SEK 0.16 0.18 1.23 3.35 3.29 3.61 6.02 5.41

Profit margin 24.7% -39.6% -272.6% -21.2% 10.4% -378.5% 3.3% -2.4%

Equity/assets ratio 33.9% 24.7% 14.9% 31.4% 30.1% 31.7% 42.6% 42.6%

Debt/equity ratio 95.9% 165.4% 356.9% 134.3% 148.4% 141.4% 79.1% 84.1%

* In connection with the completed rights issue in 2010, the share price at the end of the period was adjusted retrospectively, which has affected the ratios Share

price/Equity per share before dilution and P/ E multiple per share.

** The number of shares outstanding after dilution includes only shares that give rise to a dilutive effect. The rights issue carried out in 2013 gave rise to retrospective

adjustments.

*** Figures for the three-month period in 2013 include one-off costs of SEK 20,902 thousand before and after tax. Further, figures for the full year of 2012 and 2011 include

one-off costs of SEK 1,747,674 thousand before and after tax respectively SEK 2,034,666 thousand before, and SEK 1,758,077 thousand, after tax. Shareholders' equity

has been adjusted retrospectively, which has given rise to changed key ratios related to shareholders' equity. See note 2, Accounting policies.


16

NOTE 1. Company information

PA Resources AB (publ.), corporate identity no. 556488-2180, registered in Stockholm, Sweden, has been listed on the

NASDAQ OMX Nordic Exchange in Stockholm since 2006 (Small Cap segment since January 2013). The Company's and its

subsidiaries' operations are described in the sections PA Resources in brief and Operational overview.

NOTE 2. Accounting policies

The interim report for the period that ended 31 March 2013 has been prepared in accordance with IAS 34 and the Swedish

Annual Accounts Act. The consolidated financial statements for the period January–March 2013 have, like the year-end ac-

counts for 2012, been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the Euro-

pean Union (EU) and the Swedish Annual Accounts Act. The parent company's accounts have been prepared in accordance

with Annual Accounts Act and guideline RFR 2, Accounting for Legal Entities, issued by the Swedish Financial Reporting Board

(RFR).

The same accounting policies have been applied for the period as those applied for the 2012 financial year and as described

in the 2012 Annual Report.

The interim report does not contain all of the information and disclosures provided in the annual report; the interim report

should therefore be read in the same context as the 2012 Annual Report.

Restatement of opening balance for comparison period

In connection with the process of farming out ownership interests in the Zarat licence, in 2012 PA Resources conducted an

analysis of the Tunisian tax situation. This resulted in an adjustment of previously unreported deferred tax liabilities pertaining to

periods before 2011 by a total of SEK -444,738 thousand, which was reported directly against shareholders' equity for the peri-

od in 2011. The periods thereafter have been adjusted within other comprehensive income, with respect to exchange differ-

ences, as the underlying deferred tax liabilities are booked in USD. Thus the Group's income statement has not been affected

by this adjustment. Nor has the statement of cash flows been affected by these retrospective adjustments, since they pertain in

their entirety to unrealised changes in value. The retrospective adjustments were made during the third quarter of 2012.

Changed presentation of non-current assets for comparison period

In 2012 PA Resources changed its presentation of non-current assets on the balance sheet and in the segment reporting. The

assets that were previously categorised as "Intangible non-current assets and property, plant and equipment" are categorised

as from 31 December 2012 as "exploration and evaluation assets" and "oil and gas assets". Comparative figures for 31 March

2012 have been recalculated and are reported in accordance with the new categorisation.

NOTE 3. Revenue

Total outstanding oil inventory in number of barrels is carried at fair value as per the balance sheet date and is reported as if the

inventory had been sold. In addition, PA Resources' entire working interest is reported within revenue. Adjustment has been

made in cash flow for non-cash items.

NOTE 4. Raw materials and consumables

SEK 000s Jan.-March 2013 Jan.-March 2012 Jan.-Dec. 2012

Operation and production costs -119,376 -133,020 -495,166

Royalties -51,370 -75,919 -255,243

Total cost of sales -170,746 -208,939 -750,409

The parent company has no costs for raw materials and consumables.

NOTE 5. Segment reporting

The Group is organised and followed up according to geographic regions, which correspond to the operating segments for

which information is provided. Operating segments per geographic region correspond to the reporting for local units within the

respective regions, except for working interests in PA Resources AB, which are reported in the North Sea segment.

Following is a compilation of operating segments per geographic region and the local reporting entities that are included with-

in the respective reportable operating segments:

NOTES TO THE FINANCIAL STATEMENTS


17

North Africa: Hydrocarbures Tunisie Corp, Hydrocarbures Tunisie El Bibane Ltd, PA Resources Tunisia

West Africa: PA Energy Congo Ltd, Osborne Resources Ltd

North Sea: PA Resources UK Ltd, PA Resources Denmark ApS and PA Resources AB's working interests in Greenland

Other/joint-Group: PA Resources AB, Microdrill AB and joint-Group

The operating segments are accounted for according to the same accounting policies as for the Group. The operating seg-

ments' revenue, expenses, assets and liabilities include items directly attributable to and items that can be allocated to a specific

operating segment in a reasonable and reliable manner. The Group centralises its handling of financial assets and liabilities. As

a result of this, financial items and financial assets and liabilities are reported as joint-Group items.

January-March 2013

Income statement (SEK 000s) North Africa West Africa North Sea Other/Group Group

elimination Total

Revenue 134,918 309,950 3,127 7,857 -9,950 445,902

Total expenses -59,867 -137,656 -8,528 -7,429 9,950 -203,530

Impairment losses 0 -20,902 0 0 0 -20,902

Depreciation and amortisation -50,933 -22,761 -10 -5 0 -73,709

Operating profit 24,118 128,631 -5,411 423 0 147,761

Total financial items -37,408

Profit before tax 110,353

Income tax -76,540

Profit for the period 33,813

January-March 2012

Income statement (SEK 000s) North Africa West Africa North Sea Other/Group Group

elimination Total

Revenue 198,534 450,504 2,567 7,343 -9,148 649,800

Total expenses -67,222 -177,174 -8,479 -10,762 9,148 -254,489

Impairment losses 0 0 0 0 0 0

Depreciation and amortisation -87,116 -93,602 -95 -30 0 -180,843

Operating profit 44,196 179,728 -6,007 -3,449 0 214,468

Total financial items -146,586

Profit before tax 67,882

Income tax -99,106

Profit for the period -31,224

31 March 2013

Balance sheet (SEK 000s) North Africa West Africa North Sea Other/Group Group

elimination Total

Exploration and evaluation assets

1,735,557 1,000,230 640,675 0 0 3,376,462

Oil and gas assets 1,555,703 502,771 0 0 0 2,058,474

Machinery and equipment 4,190 0 20 0 0 4,210

Financial assets 1,030 0 0 2,190,823 -2,190,823 1,030

Deferred tax receivables 0 0 0 103,737 0 103,737

Current assets 130,940 511,580 11,658 296,272 0 950,450

Total assets 3,427,420 2,014,581 652,353 2,590,832 -2,190,823 6,494,363

Equity 2,201,324

Non-current liabilities 1,081,180 256,745 0 1,096,223 0 2,434,148

Current liabilities 240,554 201,247 15,710 1,401,380 0 1,858,891

Total equity and liabilities 1,321,734 457,992 15,710 2,497,603 0 6,494,363

Investments in exploration and evaluation assets

1,563 0 7,995 0 0 9,558

Investments in oil and gas assets

0 48,175 0 0 0 48,175

Investments in machinery and equipment

219 0 0 0 0 219


18

31 March 2012

Balance sheet (SEK 000s) North Africa West Africa North Sea Other/Group Group

elimination Total

Exploration and evaluation assets

1,758,295 1,565,876 756,796 0 0 4,080,967

Oil and gas assets 1,833,099 1,526,256 0 0 0 3,359,355

Machinery and equipment 5,833 6,343 1,506 71 0 13,753

Financial assets 1,139 278 0 2,190,823 -2,190,823 1,417

Current assets 140,885 721,923 10,782 182,221 0 1,055,811

Total assets 3,739,251 3,820,676 769,084 2,373,115 -2,190,823 8,511,303

Equity 2,561,879

Non-current liabilities 1,113,367 137,543 0 3,130,776 0 4,381,686

Current liabilities 421,295 128,609 41,876 975,958 0 1,567,738

Total equity and liabilities

1,534,662 266,152 41,876 4,106,734 0 8,511,303

Investments in exploration and evaluation assets

4,266 3,719 5,997 0 0 13,982

Investments in oil and gas assets

0 17,576 0 0 0 17,576

Investments in machinery and equipment

0 0 0 0 0 0

The Group's customers consist of a small number of major international oil and trading companies. Information on external

revenue pertaining to the region where the operating segments are registered and outside the region is provided below. The

table also shows revenue from individual external customers where the revenue amounts to 10% or more compared with total

external revenue for the Group.

January-March 2013

SEK 000s North Africa West Africa North Sea Other/Group Group

elimination Total Group

Revenue from external customers within the region

5,512 0 3,127 7,857 -9,950 6,546

Revenue from external customers outside the region

129,406 309,950 - - - 439,356

Total revenue, external 134,918 309,950 3,127 7,857 -9,950 445,902

Revenue from external customers exceeding 10% of total Group revenue

Customer 1 134,918 186,146 - - - 321,064

% share of revenue from external customers exceed-ing 10% of total Group revenue:

Customer 1 30% 42% - - - 72%


19

NOTE 6. Financial income and expenses during the period

Exchange gains and losses are reported net in the income statement for the Group and parent company.

Group - SEK 000s Jan.-March 2013 Jan.-March 2012 Jan.-Dec. 2012

Interest income 3,148 1,400 5,503

Exchange gains 44,638 0 0

Other financial items 0 0 0

Total financial income (net) 47,786 1,400 5,503


Interest expense -69,323 -103,982 -380,354

Exchange losses 0 -640 -1,021

Other financial items -15,871 -43,364 -223,445

Total financial expenses (net) -85,194 -147,986 -604,820

Exchange gains/losses are broken down as follows:

Exchange gains arising from bank equivalents (gross) 2,716 1,049 6,043

Exchange gains arising from borrowings (gross) 53,438 32,820 116,099

Exchange losses arising from bank equivalents (gross) -5,493 -4,619 -6,425

Exchange losses arising from borrowings (gross) -6,023 -29,890 -116,738

Total exchange gains (+) / losses (-) (net) 44,638 -640 -1,021

Parent company - SEK 000s Jan.-March 2013 Jan.-March 2012 Jan.-Dec. 2012

Interest income 24,675 25,547 100,559

Exchange gains 45,172 0 0

Other financial items 0 0 1,224

Total financial income (net) 69,847 25,547 101,783


Interest expense -63,616 -106,180 -369,167

Exchange losses 0 -179,897 -361,862

Other financial items -3,689 -18,344 -137,912

Total financial expenses (net) -67,305 -304,421 -868,941

Exchange gains/losses are broken down as follows:

Exchange gains arising from bank equivalents (gross) 2,420 1,009 4,342

Exchange gains arising from borrowings (gross) 53,361 233,126 1,263,769

Exchange losses arising from bank equivalents (gross) -5,082 -4,364 -6,398

Exchange losses arising from borrowings (gross) -5,527 -409,668 -1,623,575

Total exchange gains (+) / losses (-) (net) 45,172 -179,897 -361,862


20

NOTE 7. Income tax

Reported tax pertains to income tax expense and deferred taxes attributable to ownership interests in oil fields in Tunisia and

Equatorial Guinea as well as Tax Oil (the difference between the "Working interest share" and "Net Entitlement") in the West

Africa region. During 2012, retrospective adjustments were made against shareholders' equity in the Group for previously unre-

ported deferred tax liabilities in Tunisia pertaining to periods prior to the start of 2011. This resulted in an increase in the opening

balance of deferred tax liabilities in 2011 of SEK 444,738 thousand.

NOTE 8. Reporting of financial instruments

PA Resources' oil and gas assets are valued in USD and generate revenue in USD. The Group conducts various hedging activi-

ties on the interest-bearing liability to match the corresponding foreign exchange risk associated with the assets. Through this,

the Group has entered into currency and interest rate swap agreements to match the currency exposure in the Group's listed

bond issues. A combination of the bond issues with the currency and interest rate swap agreements provides risk exposure that

corresponds to USD-denominated loans. In cases where the Group has currency and interest rate swap agreements, these are

carried at fair value, which results in unrealised net gains/losses.

As per 31 March 2013 and at the end of the comparison periods, the Group had no financial instruments measured at fair

value on the balance sheet. The table below shows the carrying amount of the Group's financial instruments compared with

their fair values. In cases where the fair value differs from the carrying amount, this is based on observable market data.

31 March 2013

Financial instruments (SEK 000s) Carrying amount Fair value

Financial assets 1,030 1,030

Accounts receivable and other receivables 628,073 628,073

Cash and cash equivalents 287,527 287,527

Total financial assets 916,630 916,630

Non-current interest-bearing loans and borrowings 1,096,223 1,003,613

Current interest-bearing loans and borrowings 1,302,293 1,172,127

Accounts payable and other liabilities 315,806 315,806

Total financial liabilities 2,714,322 2,491,546

NOTE 9. Convertible bond

Following the set-off issue carried out in the fourth quarter of 2012 corresponding to approximately 90% of the total outstanding

nominal amount, a nominal amount of SEK 93.7 million remains of the convertible bond.

Remaining convertibles continue to carry annual nominal interest of 11%, which will be paid the last time on 15 January

2014. The convertibles fall due for payment of the nominal amount on 15 January 2014 unless conversion or repayment has

been made prior to this date. The last conversion to shares may be done during the period 1–30 September 2013. The convert-

ible bond continues to be defined as a Compound Financial Instrument, which entails a split classification between financial

liability and equity.

NOTE 10. Provisions

For parts of oil fields where the Group has an obligation to contribute to asset retirement costs for environmental restoration,

dismantling, cleaning and similar actions around the drilling areas both onshore and offshore, a provision corresponding to

future calculated obligations is recorded. An obligation arises either at the time an oil field is acquired or when the Group starts

to utilise these.

The Asset Retirement Obligation is accounted for as a provision based on the present value of costs that are judged to be

required to fulfil the obligation, using the estimated cash flows. The discount rate used takes into account the time value of

money and the risk specifically associated with the liability, assessed by the market. As per 31 March 2013, the Group's calcu-

lated provisions for restoration costs amounted to SEK 570.6 million (517.0). PA Resources uses the Full Cost Method, which

entails that the corresponding amount for the provision is capitalised as an asset and is amortised. Total assets attributable to

restoration costs amounted to SEK 113.2 million (220.3) as per 31 March 2013. Future changes in provisions due to the time

value of money are accounted for as a financial expense, and estimated changes are capitalised or reversed against the corre-

sponding assets.

NOTE 11. Related party transactions

No remuneration other than customary directors' fees that have been approved by the Annual General Meeting has been paid

out.


21

NOTE 12. Financial assets, parent company

The parent company's financial assets include shares in subsidiaries totalling SEK 2,190.8 (2,190.8) million, receivables from

Group companies totalling SEK 4,188.6 (5,474.9) million, and deferred tax assets totalling SEK 103.7 (0) million.

NOTE 13. Assets held for sale

Assets (and related liabilities) held for sale attributable to the comparison period ended 31 March 2012 pertain to the two small

oil-producing fields Ezzaouia and El Bibane. The transaction was concluded during the second quarter of 2012 and thus there

are no assets held for sale (or related liabilities) in subsequent periods.

NOTE 14. Parent company's result from interests in Group companies

During the period, no transactions were carried out which gave rise to profit or loss in the parent company interests in Group

companies. In connection with the impairment of the Group's working interest in the West Africa region, during the fourth quarter

of 2012 the parent company wrote down an intra-Group receivable by SEK 1,799.0 million. In addition, during the fourth quarter

the parent company wrote down intra-Group receivables by SEK 87.5 million and SEK 44.9 million, respectively, as a result of

the relinquishment of licence 9/95 (Maja) in Denmark and the Marine XIV licence in the Republic of Congo. During the second

quarter of 2012 the parent company received dividends from subsidiaries totalling SEK 1,895.3 million.

NOTE 15. Pledged assets and contingent liabilities

As per 31 March 2013, pledged assets amounted to SEK 577.3 million for the Group and SEK 570.2 million for the parent com-

pany. Total contingent liabilities amounted to SEK 14.0 million for both the Group and parent company. Compared with at 31

December 2012, total pledged assets decreased by a net total of SEK 155.8 million for the Group and SEK 156.3 million for the

parent company. This is mainly attributable to a decrease in pledged assets in the West Africa region. Total contingent liabilities

for the Group and parent company are unchanged compared with at 31 December 2012. Total pledged assets and contingent

liabilities for the Group and parent company as per 31 March 2013 compared with 31 March 2012 and 31 December 2012 are

shown in the table below.

Group Parent company

Pledged assets - SEK 000s 31 March 2013 31 March 2012 31 Dec. 2012 31 March 2013 31 March 2012 31 Dec. 2012

Pledged assets are broken down as follows:

Security in the form of assets in Region West Africa

570,168 1,273,782 726,489 - - -

Guarantee commitment for Group loan obligations

- - - 570,168 1,273,782 726,489

Oil inventory attributable to payment of royalties in kind

7,109 10,540 6,555 - - -

Total pledged assets 577,277 1,284,322 733,044 570,168 1,273,782 726,489

Contingent liabilities are broken down as follows:

Contingent liabilities attributable to the acquisition of PA Energy Congo Ltd

14,000 14,000 14,000 14,000 14,000 14,000

Total contingent liabilities 14,000 14,000 14,000 14,000 14,000 14,000


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Definitions

FINANCIAL DEFINITIONS

EBITDA is defined as operating profit excluding total depreciation and amortisation including impairment.

Operating profit is defined as operating revenue less operating expenses (including depreciation, amortisa-tion and impairment).

Operating margin is defined as operating profit after depreciation and amortisation as a percentage of total revenue.

Earnings per share before/after dilution is defined as profit for the period in relation to the average num-ber of shares outstanding before/after dilution.

Return on equity is defined as the average, moving 12-month profit after tax as a percentage of average adjusted equity.

Return on total capital is defined as the average, moving 12-month operating profit plus adjusted finan-cial items as a percentage of average total assets.

Return on capital employed is defined as the aver-age 12-month moving operating profit plus adjusted

financial items as a percentage of average capital employed (total assets less noninterest-bearing liabili-ties including deferred tax liabilities).

Shareholders' equity per share before/after dilu-tion is defined as the Group's reported equity in rela-tion to the number of shares outstanding before/after dilution.

Profit margin is defined as profit after net financial items as a percentage of total revenue.

Equity/assets ratio is defined as the Group’s report-ed equity as a percentage of total assets.

Debt/equity ratio is defined as the Group's interest-bearing liabilities less cash and cash equivalents in relation to adjusted equity.

P/E multiple per share is defined as the share price at the end of the period in relation to profit after tax, divided by the average number of shares outstanding before dilution.

INDUSTRY TERMS

Appraisal well: A well drilled to determine the extent and scope of a discovery.

Barrels of oil equivalents: Unit of volume used for petroleum products. An indication used when oil, gas and NGL are to be summarised. Abbreviated BOE in English.

Farm out/farm in: The holder of shares in an oil licence may transfer (farm out) shares to another company in exchange for this company taking over some of the work commitments on the licence, such as paying for a drilling or a seismic investigation with-in a certain period. In return, the company that is brought in receives a share in any future revenues.

FPSO-vessel: Floating, Production, Storage and Offloading vessel used in an oil field.

FDPSO-vessel: Floating, Drilling, Production, Stor-age and Offloading vessel used in an oil field. Used at the Azurite field in the Republic of Congo.

Licence: A licence is a permit granted to an oil com-pany from the government of a country to look for and produce oil and gas. Oil and natural gas assets are usually owned by the country in which the oil or natu-ral gas is discovered. The oil companies obtain per-mission from the respective country’s government to explore for and extract oil and natural gas. These

permits are also called concessions, permits, or pro-duction-sharing agreements, depending on the coun-try in question. A licence usually consists of two parts: an exploration permit and a production licence.

Net Entitlement Share: The proportion of revenue, production or reserves that accrue to the oil company after deduction for royalties and taxes.

Operator: A company that, under commission by one or more companies in partnership, has obtained the right to manage the operations on an oil and gas li-cence.

Production well: A well to extract petroleum from a reservoir.

Seismic data: Seismic studies are conducted to describe geological structures in bedrock. At sea, sound signals are transmitted from the ocean surface, and the echoes are captured. Such studies can be used to locate the presence of hydrocarbons, among other things.

Sidetrack: Drilling from an existing well path towards

a new well target.

Working Interest (WI): The proportion of revenue, production or reserves that accrue to the oil company before taxes, royalties and other curtailment.

Currency rates

Closing day rate

31 March 2013 Average rate Jan.-

March 2013

Closing day rate 31 March 2012

Average rate Jan.-March 2012

Closing day rate 31 Dec. 2012

Average rate Jan.-Dec. 2012

1 EUR in SEK 8.34 8.50 8.84 8.85 8.62 8.71

1 USD in SEK 6.52 6.43 6.62 6.75 6.52 6.78

1 TND in SEK 4.08 4.11 4.42 4.48 4.20 4.34

1 NOK in SEK 1.11 1.14 1.16 1.17 1.17 1.16

1 GBP in SEK 9.88 9.99 10.60 10.61 10.49 10.73

1 DKK in SEK 1.12 1.14 1.19 1.19 1.16 1.17

PA Resources at a glance

An international oil and gas company with operations and assets in nine countries

Oil production in West and North Africa

A total of 22 oil and gas licences, of which six are in production, one is under

development and 15 are in the exploration phase

Operator of 11 licences; part-owner and partner in the other licences

38.1 million barrels of 1P reserves and 55.7 million barrels of 2P reserves

124 employees in Tunisia, Sweden, the UK and the Republic of Congo

PA Resources is domiciled and has its head office in Stockholm, Sweden

PA Resources' shares (PAR), the convertible bond (PAR KV1) and the SEK-bond

are listed on NASDAQ OMX Stockholm

FINANCIAL CALENDAR

Annual General Meeting 2013 14 May 2013

Interim Report Q2 (January–June) 14 August 2013

Interim Report Q3 (January–September) 23 October 2013

Year-end Report 2013 (January–December) 5 February 2014

Until further notice, PA Resources will be publishing monthly

production reports in order to provide current information on

the actual production.

The information in this interim report is such that PA Resources

AB is required to disclose pursuant to the Securities Market Act

and Financial Instruments Trading Act. Submitted for publica-

tion at 08:15 a.m. (CET) on 24 April 2013.

PA Resources' results for the first quarter of 2013 will be pre-

sented on 24 April 2013 at 10 a.m. (CET) via a webcast confer-

ence call. To participate, use the link at www.paresources.se or

call:

SE: +46 8 505 564 74

UK: +44 203 364 5374

US: +1 855 753 2230

An on-demand webcast is also available after the presentation.

All financial information is published on www.paresources.se

directly after release. To make it easier for you to stay up to

date, subscribe to our press releases and financial reports via

e-mail or RSS.

PA Resources AB (publ), Kungsgatan 44, level 3, SE-111 35 Stockholm, Sweden. Tel: +46 (0)8 545 211 50, www.paresources.se

DISCLOSURE

WEBCAST CONFERENCE CALL

FINANCIAL INFORMATION

This is a translation of the Swedish Interim Report. In the event of

any differences between this translation and the Swedish original,

the Swedish version shall govern.

http://www.paresources.se/

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