Mime Petroleum

The Operator of the Balder X project, Vår Energi ASA, has today provided an update on the progress for the Balder X development and a revised cost estimate which reflect increased scope of work, the continued impact from global supply chain challenges, Covid-19 and schedule change.

Balder X, which comprises Balder Future and the Ringhorne Phase IV drilling projects, is set to extend production from the Balder Hub to 2045 and support development of new nearby discoveries by upgrading existing infrastructure and drilling of new wells. A baseline project review has identified additional gross investment requirements of NOK 11.5 billion, bringing the total estimated gross project cost to NOK 40.7 billion. Mime Petroleum AS holds a 10% stake in the Balder X project. First oil from Balder X is now expected in the third quarter of 2024, compared to previously late in 2023.

The main production impact from the revised schedule is expected in 2024, however partly mitigated by a faster ramp-up of production as more Balder Future production wells are expected to be ready for start-up. It is also expected that the majority of incremental capital expenditure will be incurred in 2024.

The new cost estimate and schedule change are mainly related to Balder Future, with increased scope and additional engineering and construction work on the Jotun FPSO lifetime extension. External factors including Covid-19, challenging weather conditions for drilling and offshore activities, and commodity and services price inflation have to some extent impacted the overall project. Key focus areas are to ensure progress and cost control for the remaining part of the project.

Balder X is expected to unlock an estimated 143 million barrels of recoverable reserves, and remains a highly profitable project which is expected to increase the Balder Hub gross production to over 70,000 barrels of oil equivalents per day at peak.

The revised cost estimate and schedule will be included in Norway’s National Budget for 2023 to be published 6 October 2022.

Reference is also made to the press release from Vår Energi ASA.

The Balder X Project

• The Balder field is in production license PL 001 – the very first license on the Norwegian Continental Shelf (NCS) – acquired in 1965.
• The Balder X project aims to extend production to 2045 and consists of four ongoing projects: Balder FPU life extension – vessel upgrade, drilling new wells on Ringhorne III/IV and Balder Future including Jotun FPSO lifetime extension and drilling 14 new production wells and one water injection well.
• The project is reusing existing infrastructure to reduce the development footprint and to open for a potential future retirement of production assets which may reduce annual CO2 emission ~100,000 ton per year.
• King and Prince discoveries in the Balder area, estimated to hold 60-135 million barrels of oil, are currently assessed for tie-ins to the Jotun FPSO.
• License owners: Vår Energi ASA 90% and Mime Petroleum AS 10%

For more information, please contact:

Olav Haugland

CFO

+47 915 41 809

or

Sverre Skogen

Executive Chairman

+47 971 62 010

Mime Petroleum AS presented the second quarter 2022 results and a company update to investors, analysts and other stakeholders in a webcast presentation on Monday August 29, 2022 at 14:00 CET.

The Investor Update presentation is available below.

For further information, please contact:

Olav Haugland, CFO

M: + 47 915 41 809

E: olav.haugland@mime-petroleum.com

Mime Petroleum AS presented the first quarter 2022 results and a company update to investors, analysts and other stakeholders in a webcast presentation on Wednesday May 25, 2022 at 12:00 CET.

The Investor Update presentation can be downloaded here.

 

For further information, please contact:

Olav Haugland, CFO

M: + 47 915 41 809

E: olav.haugland@mime-petroleum.com

Mime Petroleum AS presented the third quarter 2021 results and a company update to investors,

analysts and other stakeholders to a webcast presentation on Thursday November 25, 2021 at 10:00 CET.

For further information, please contact:

Olav Haugland, CFO

M: + 47 915 41 809

E: olav.haugland@mime-petroleum.com

Mime Petroleum AS has completed a private placement of USD 225 million of new five-year senior secured bonds with a coupon rate of 10.25%. The placement met strong investor demand across international markets.

The bond issue is expected to be settled on or about November 10, 2021, subject to customary conditions precedent. An application will be made for the bonds to be listed. Net proceeds from the bond issue will be used to refinance the Company’s outstanding reserve based lending facility (RBL) and the existing NOK 300 million MIME01 PRO bonds (ISIN NO 0010875032) in full, and finance capital expenditures related to the Balder Future redevelopment. The Company will send a call notice for the MIME01 PRO bonds upon settlement of the new bond issue. Further details on the call option exercise will be announced upon settlement of the new bond.

ABG Sundal Collier ASA, DNB Markets, part of DNB Bank ASA, and Pareto Securities AS acted as Joint Lead Managers for the transaction.

For further information, please contact:

Olav Haugland, CFO

M: +47 915 41 809

E: olav.haugland@mime-petroleum.com

Contemplated refinancing and USD 225m bond issue, October 19 2021

Mime Petroleum AS has engaged ABG Sundal Collier ASA, DNB Markets, part of DNB Bank ASA, and Pareto Securities AS as Joint Lead Managers to arrange a series of fixed income investor meetings commencing on October 20, 2021. Subject to market conditions, a new 5 year senior secured bond issue may follow.

The purpose of the bond issue is to refinance the Company’s outstanding reserve based lending facility and the existing NOK 300 million MIME01 PRO bonds (ISIN NO 0010875032) in full, and finance capital expenditures related to the Balder Future redevelopment. The Company will, subject to a successful placement, exercise the call option for the MIME01 PRO bonds.

For further information, please contact:

Olav Haugland, CFO

M: +47 915 41 809

E: olav.haugland@mime-petroleum.com

Based on the latest developments, the previously communicated challenges related to Covid-19 in maintaining scheduled progress remains.

It is expected that the timing of first oil is delayed beyond first half of 2023. Covid-19 has impacted equipment deliveries and available workforce at yard due to closed borders.

Detailed work and assessments to evaluate the impact of the current situation are ongoing, and it is currently not possible to provide a new specific scheduled first oil date or provide further guidance on the expected cost increase.

Based on the sources of capital available to the Company, Mime Petroleum is fully financed till Balder Future project first oil.

For more information, please contact:

Sverre Skogen

Executive Chairman

M: +47 9716 2010

Mime Petroleum AS is pleased to confirm a discovery of oil and gas in the King and Prince exploration wells in the Balder area in the Southern North Sea.

The combined King and Prince exploration wells proved successful with the latest preliminary estimates showing volumes between 60-135 million barrels of recoverable oil equivalents.

The licensees, Vår Energi AS (90%) and Mime Petroleum AS (10%) consider the discoveries to be commercial and will assess tie-in to the existing infrastructure in the Balder area. Mime will, together with the operator, continue to analyse the subsurface potential in both King and Prince and mature further upsides in both for potential appraisal.

Reference is made to the attached press release from The Norwegian Petroleum Directorate.

For more information, please contact:

Sverre Skogen

Executive Chairman

+47 9716 2010

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