Petrolia NOCO : Interim Report 1H 2023

Condensed interim financial statement - 1H 2023

FINANCIAL REPORT FOR THE FIRST HALF OF 2023

1

Condensed interim financial statement - 1H 2023

HIGHLIGHTS FOR 1H 2023

• PL1013 (Løvmeis) scheduled to be drilled in Q3 2024. If drilling is successful, first oil is expected in 2025
• Development work on PL882 (Dugong) is ongoing with slight delay. First oil expected 2029
• Production of 29 boe/day from Enoch during 1H 2023
• Production from Flyndre has stopped and the field has been shut down
• Completed private placement of NOK 20 million
• New loans of NOK 16.4m secured by tax refund

Key figures (NOK million)
	1H2023	1H2022	2H2022	2022
Revenues	7.6	1.4	32.8	34.2
Net profit/(Loss)	-13.2	-18.6	-19.8	-38.4
Cash flow from operations	-51.3	-77.4	-34.8	-112,2
Cash flow from investing	-13.1	-2.0	1.8	-0.3
Cash flow from financing	35.8	20.1	65.7	85.8

2

ABOUT PETROLIA NOCO AS

Petrolia NOCO AS (Petrolia NOCO) is an independent E&P company that embraces new technologies and the industry's collaboration models to find oil and gas in prolific areas of the Norwegian continental shelf. The Company aims to maximise the utilisation of existing infrastructure sustainably and create value for all stakeholders.

Petrolia NOCO has 672 shareholders as of 30.06.2023. Its shares are registered in the Norwegian Central Securities Depository (Verdipapirsentralen, VPS) with ISIN: NO0010844301. The shares are registered with the ticker PNO on the NOTC (www.notc.no), a marketplace for unlisted shares. The LEI code is 549300OTY8HENWE3AL33.

Condensed interim financial statement - 1H 2023

Total assets were NOK 321.1 million on 30 June 2023 compared to NOK 311.4 million at the end of 1H 2022.

In the first half of 2023, the net cashflow from operations was NOK - 51.3 million (-

77.4 million). Net cash flow from investing activities was NOK -13.1 million (-2.0 million) related to capitalised exploration cost for PL882. The net cash flow from financing activities was NOK 35.8 million (20.1 million), including a private placement of NOK 20 million.

Cash and cash equivalents on 30 June 2023 were NOK 26.8 million, down from NOK 55.4 million at the end of 2022.

In June 2023, the Company completed a private placement of 10,000,000 new shares at NOK 2 per share, raising new equity of NOK 20 million. Book equity on 30 June 2023 is NOK 17.6 million.

FINANCIAL REVIEW

Petrolia NOCO reported revenues of NOK

7.6 million in 1H 2023, compared with NOK 1.4 million a year ago. The higher revenues in 1H 2023 are related to a lifting of oil from Enoch that included production from both 2022 and 2023.

The Company had exploration expenses of NOK 16.6 million compared with NOK 34.0 million in 1H 2022. Capitalised exploration expenses were NOK 13.1 million, up from NOK 2.0 million in 2022.

During 1H 2023 the Company has drawn NOK 16.4m of new loans secured by tax refund, increasing total interest-bearing debt to NOK 164.7 million.

LICENSE PORTFOLIO

Petrolia NOCO holds interest in 13 licenses in the North Sea and the Norwegian Sea, including 1 operatorship.

Norwegian Sea licenses

The operating result (EBIT) was NOK -40.2 million compared with NOK -59.3 million the previous year.

The net income tax credit was NOK 27.2 million (47.6), giving a net loss of NOK 13.2 million (18.6) for the period.

• PL 1013 (20%)
• PL 1013 B (20%)
• PL 935 (20%)

3

North Sea Licenses

• PL 882 (20%)
• PL 882 B (20%)
• PL 992 (30%)
• PL 994 (30%)
• PL 1106 (20%)
• PL 1107 (30%)
• PL 1150 S (30%)
• PL 1181 (60%) - Operator
• PL 018 C (11.654%)
• PL 048 D (21.8%)

OPERATIONAL DEVELOPMENTS

Flyndre (0.825%)

The Flyndre Field is an oil and gas producing field on the border between the Norwegian and UK sectors of the North Sea, 35 km northwest of the Ekofisk Field. The field is operated by Petrogas NEO UK Limited.

The Flyndre field did not have any production during 1H 2023. Following an unsuccessful attempt to restart production, Flyndre was shut down permanently in July 2023.

Condensed interim financial statement - 1H 2023

field is operated by Repsol Sinopec North Sea Limited.

The working interest of the production at the Enoch Field averaged 29 barrels of oil equivalents per day (Boe/day) for Petrolia NOCO during the first half of 2023.

PL882 (20%)

PL 882 was awarded as part of the APA 2016 round, where Petrolia recognised that the blocks to the west of Snorre Field were under-explored and the area would be better imaged with a new broadband seismic.

The strong partnership led to a de-risking of the Dugong prospect which was spudded towards the end of Q2 2020 and was subsequently announced as a commercial discovery.

The recoverable resources are estimated to be between 29 - 84 million barrels of oil equivalent.

The PL 882 license partnership is working on several field development scenarios. First oil is now expected in 2029.

PL 1013 (20%)

In 1H 2022 the Company farmed down 40% of its interest in the license to Equinor. The license has taken a drill decision and an exploration well is planned for Q3 2024. The Løvmeis prospect is located close to existing facilities. If successful, the partnership plans a fast-track development with production commencing in 2025.

Enoch (4.36%)

The Enoch Field is an oil and gas producing field in the central part of the North Sea on the border to the British sector, 10 km northwest of the Gina Krogh field. The

PL 935 (10%)

The Bounty prospect in the PL 935 license was drilled in 2022 and determined as a dry well with shows. The operator and partners are now evaluating the data

4

obtained to consider if additional wells shall be drilled. Interpretation of the well results are positive and de-risk the up- flank "high impact" prospect. It is located in the Frøya High area.

PL 1106 (20%) and PL 1107 (30%) The licenses were awarded in the APA 2020 application round. After acquiring new seismic, work is now being performed to further develop the licenses.

Condensed interim financial statement - 1H 2023

PL 1181 (Operator 60%)

The license was awarded under the APA 2022. The license is located in the northern part of the North Sea and will strengthen the Company's position in the Tampen area, where it already holds interest in the Dugong discovery.

EVENTS AFTER BALANCE SHEET DATE In August 2023, the Company submitted applications for several licenses under the 2023 APA licensing round.

Bergen, 31

August 2023

Brede Bjøvad Larsen	Dr Robert Arnott	Sjur Storaas
Board member	Chairman	Board member

5