BlueNord : Q1 2024 Report

BlueNord ASA

First Quarter 2024

Highlights of the Quarter

Compared to fourth quarter 2023

Revenue

$168m

-8%

Cash flow from operations (excluding tax paid)

EBITDA

$88m

-8%

Total liquidity (cash and undrawn facilities)

$88m $308m

-15%

-3%

"The first quarter of 2024 has been a monumental period for BlueNord, encompassing not only successful restart of Tyra but also representing an achievement nearly five years in the making since we became a partner in the DUC. The delivery of this project showcases the commitment, resilience and perseverance of all involved parties. When Tyra is fully operational, we are set to transform Denmark from a net importer to a net exporter of natural gas, significantly enhancing energy security in the region and offering a less emissions intensive alternative to imported LNG. Furthermore, our underlying portfolio continued to perform strongly, with the added boost from the first infill well on Halfdan that came onstream at the end of this quarter. As we look ahead to the remainder of 2024 and beyond, this moment marks the start of an exciting new chapter. We are poised to more than double our production, and with a substantial increase in free cash flow, we will fulfil our longstanding commitment to shareholder distributions."

Euan Shirlaw, Chief Executive Officer

First Quarter 2024

1

Contents

01

02

03

04

Summary of the Quarter	4
Financial Review	5
Operational Review	9
Condensed Consolidated Statement of Comprehensive Income	15
Condensed Consolidated Statement of Financial Position	16
Condensed Consolidated Statement of Changes in Equity	17
Condensed Consolidated Statement of Cash Flows	18
Notes	19
Note 1: Accounting principles	20
Note 2: Revenue	21
Note 3: Production expenses	21
Note 4: Financial income and expenses	22
Note 5: Tax	23
Note 6: Intangible assets	25
Note 7: Property, plant and equipment	26
Note 8: Non-current receivables, trade receivables and other current assets	27
Note 9: Inventories	27
Note 10: Restricted cash, bank deposits, cash and cash equivalents	27
Note 11: Borrowings	28
Note 12: Trade payables and other current liabilities	29
Note 13: Financial instruments	30
Note 14: Asset retirement obligations	35
Note 15: Subsequent events	35
Alternative performance measures	37
Information about BlueNord	38
Appendix	39

First Quarter 2024

2

Introduction

01

First Quarter 2024 Summary

Operational:

• Strong operating performance, with hydrocarbon production of 23.5 mboepd in the first quarter which is above BlueNord's quarterly guidance of 22.0-23.0 mboepd. Safe restart of Tyra II 21 March 2024, with processing and export of gas from Tyra Satellite Harald field achieved 10 April.
• Operational occurrences on Tyra II 16 April; the IP compressor is temporarily impacting the commissioning of the new Tyra facilities during the ramp-up and testing period, the operator is working to resolve the issue. Recommencement of production and export from Tyra is expected in July and full processing capacity is expected during Q4.
• Production from the Halfdan Tor NE infill well HBA-27B commenced on 26 March.
• Net 2P (Proven and Probable) Reserves were 185.6 mmboe, with 2P Reserves Replacement Ratio of 135% with a total of 12.3mmboe added mainly from the maturation of projects. This more than offsets the 2023 production of 9.1 mmboe.

Financial and Corporate:

• Total revenues of USD 168.5 million in the first quarter compared to USD 183.6 million in the previous quarter.
• EBITDA of USD 87.7 million in the first quarter compared to USD 95.0 million in the previous quarter.
• Cash flow from operations (excluding tax payments) of USD88.4 million and net cash flow from operating activities (including tax payments) of USD 76.8 million in the first quarter compared to USD 104.1 million and cash outflow of USD 85.3 million, respectively, in the previous quarter.
• Total liquidity of USD 307.7 million at the end of the period with cash on balance sheet of USD 157.7 million and undrawn RBL capacity of USD 150.0 million.
• Refinancing of the RBL is at an advanced stage of completion with expected closing end May 2024. Subject to standard conditions, including execution of documentation, and with approved commitments of over USD 1.3 billion, we expect to close a facility of at least USD 1.3 billion.

Financial and operational summary	Unit	Q1 2024	Q4 20233)	Q1 20233)
Total revenue	USDm	168.5	183.6	220.5
EBITDA1)	USDm	87.7	95.0	121.6
Adj. EBITDA1)	USDm	89.2	96.7	122.7
Result before tax	USDm	8.1	50.0	93.3
Net result for the period	USDm	(4.6)	34.8	48.6
Cash flow from operations1) 2)	USDm	88.4	104.1	158.1
Net Cash flow from operating activities	USDm	76.8	(85.3)	158.1
Investments in oil and gas assets	USDm	64.1	80.5	60.6
Abandonment spent1)	USDm	10.9	1.0	1.5
Reserve-based lending facility, drawn	USDm	850.0	850.0	800.0
Net interest-bearing debt1)	USDm	1,095.7	1,086.7	860.6
Oil production	mboepd	17.9	19.0	19.8
Gas production	mboepd	5.6	5.9	6.7
Total production	mboepd	23.5	24.9	26.6
Over/under-lift	mboepd	(1.1)	(0.5)	(0.3)
Realised Oil price	USD/boe	86.0	84.8	84.4
+/- Effect of hedges	USD/boe	(13.0)	(14.5)	(20.1)
Effective Oil price	USD/boe	73.0	70.3	64.3
Realised Gas price	EUR/MWh	25.0	38.7	52.7
+/- Effect of hedges	EUR/MWh	35.0	25.3	44.0
Effective Gas price	EUR/MWh	60.0	64.0	96.7

YTD 2024 YTD 20233)

168.5 220.5

87.7 121.6

89.2 122.7

8.1 93.3

(4.6) 48.6

1. 158.1

1. 158.1

1. 60.6

1. 1.5

1. 800.0
   1,095.7 860.6

1. 20.6

1. 6.2
   23.5 26.7
   (1.1) (0.3)

1. 84.4
   (13.0) (20.1)

73.0 64.3

25.0 52.7

35.0 44.0

60.0 96.7

1. See the description of "Alternative performance measures" at the end of this report for definitions.
2. Cash flow from operations is defined as Net Cash flow from operating activities excluding tax payments.
3. Restated. The comparative information is restated on account of correction of errors. See note 10 in the Annual Report 2023.

First Quarter 2024

4

Financial Review

Selected data from consolidated statement of comprehensive income

USD million	Q1 2024	Q4 20231)	Q1 20231)	YTD 2024	YTD 20231)
Total revenue	168.5	183.6	220.5		168.5	220.5
EBITDA	87.7	95.0	121.6		87.7	121.6
EBIT	58.5	68.3	95.5		58.5	95.5
Result before tax	8.1	50.0	93.3		8.1	93.3
Net result for the period	(4.6)	34.8	48.6		(4.6)	48.6
Earnings per share	(0.2)	1.0	1.9		(0.2)	1.9

1. Restated. The comparative information is restated on account of correction of errors. See note 10 Restatement of borrowing cost in the Annual Report 2023.

Revenues of USD 168.5 million in the first quarter of 2024, mainly related to oil and gas sales from the Danish Underground Consortium (DUC) fields, compared to USD 183.6 million in the previous quarter. The decrease compared to last quarter was related to lower realised gas prices net of hedging and lower oil and gas volumes sold partly related to increased oil inventory, with decreases of 3.4 percent, 10.4 percent and 5.9 percent, respectively. Offset by 3.8 percent higher realised oil prices net of hedging.

Production expenses: In the current quarter USD 70.9 million was directly attributable to the lifting and transport of the Company's oil and gas production, equating to USD 33.2 per boe. This was USD 72.4 million in the previous quarter, equating to USD 31.6 per boe. Production expenses was at the same level as previous quarter, the increased cost per boe was related to lower production. Adjusted for concept studies, insurance and changes in stock and inventory, total production expenses amounted to USD 72.3 million compared to USD 76.9 million in the previous quarter.

Operating result before depreciation, amortisation and impairment (EBITDA) in the first quarter of 2024 was a profit of USD 87.7 million, compared to USD 95.0 million in previous quarter. This decrease mainly relates to decreased revenue due to lower gas prices net of hedging and lower lifted oil and gas volumes, offset by increased oil prices net of hedging and a decrease in total operating expenses due to changes in oil inventory and stock.

Net Financial items amounted to an expense of USD 50.3 million for the first quarter of 2024, compared to an expense of USD 18.3 million in the previous quarter. Mainly influenced by the negative effect on the fair value adjustment related to embedded derivatives on BNOR15 compared to positive effect in previous quarter, in addition to the positive effect of capitalisation of borrowing costs in the previous quarter. Offset by net foreign exchange gain in the current quarter compared to net losses and negative fair value adjustment of the ineffective part of the interest swap in the previous quarter.

Income tax amounted to USD 12.7 million for the first quarter of 2024 compared to USD 15.3 million for the previous quarter. The decrease in income tax is primarily due to change in operating results. YTD 2024 current income tax amounted to a cost of USD 2.6 million and deferred tax movements amounted to a cost of USD 10.1 million, which corresponds to a statutory tax rate of 64 percent on result before tax on hydrocarbon income including associated interest costs, adjusted with the effects of investment uplift and interest restriction. Effective 0 percent tax on result before tax in Norway and UK and effective 22 percent tax on result before tax on ordinary income in Denmark.

Net result for the first quarter of 2024 was a loss of USD 4.6 million, compared to USD 34.8 million gain in the previous quarter.

First Quarter 2024

5

Financial review continued

Selected data from the consolidated statement of financial position

USD million	31.03.2024	31.12.2023	31.03.20231)
Total non-current assets	3,080.6	3,031.0	2,728.2
Total current assets	324.3	381.9	614.6
Total assets	3,404.9	3,412.9	3,342.8
Total equity	780.7	813.6	752.6
Interest bearing debt	1,205.2	1,191.6	1,118.4
Asset retirement obligations	1,050.3	1,049.0	967.8
Total current liabilities	415.1	441.6	462.7

1. Restated. The comparative information is restated on account of correction of errors. See note 10 Restatement of borrowing cost in the Annual Report 2023.

Total non-currentassets amounted to USD 3.1 billion at the end of the first quarter of 2024 compared to USD 3.0 billion in the previous quarter. Increased due to increase in property, plant and equipment and deferred tax asset, offset by decrease in fair value of commodity derivatives following the strengthening of oil prices at the end of current quarter. Total non-current assets consist of USD 2.5 billion related to property, plant and equipment, intangible assets of USD 150.1 million, deferred tax asset of USD 245.1 million, derivatives related to the RBL interest swap and gas hedges of USD 3.1 million and USD 214.4 million in restricted cash, relating to cash pledged to TotalEnergies as security for DUC cash call obligations and security against Nini/Cecilie abandonment costs.

Total current assets amounted to USD 324.3 million at the end of the first quarter of 2024 compared to USD 381.9 million at the end of the previous quarter. The decrease in derivative instruments assets is due to settlement of gas hedges put in place when the gas price spiked in 2022. In addition, the decrease is caused by the unwinding of the interest swap contract decrease in trade receivables and cash, offset by increase in oil inventory. Total current assets consist of USD 39.3 million in derivatives related to the RBL interest swap and gas hedges, USD 42.4 million in trade receivables, mainly related to oil and gas revenue, USD 20.3 million in prepayments mainly related to insurance, USD 157.7 million of cash and USD 62.9 million of inventory.

Total equity amounted to USD 780.7 million at the end of the first quarter of 2024, compared to USD 813.6 million at the end of the previous quarter. Decrease in equity was mainly related to negative fair value adjustment of hedges and the net loss for the period.

Interest-bearingdebt amounted to USD 1.2 billion at the end of the first quarter of 2024, compared to USD 1.2 billion at the end of the previous quarter. The convertible bond loan BNOR15 had a book value of USD 209.2 million at the end of the current quarter. BlueNord's USD 1.1 billion RBL facility, drawn at USD 850.0 million on 31 March 2024 and with maximum cash drawing capacity of USD 1.0 billion, had a book value of USD 822.5 million at the end of the first quarter. Of which USD

125.0 million is classified as current liability as it is due for payment in second half of 2024.The senior unsecured bond loan BNOR14 had a book value of USD 173.6 million at the end of the period.

Asset retirement obligations amounted to USD 1,050.3 million at the end of the first quarter of 2024, compared to USD 1,049.0 million at the end of the previous quarter. The increase is primarily due to accretion expense for the period, offset by abandonment paid in the period. USD 984.0 million relates to the DUC assets, USD 62.9 million to Nini/Cecilie, USD 1.5 million to Lulita and USD 1.9 million to the Tyra F-3 pipeline. The Nini/Cecilie asset retirement obligation is secured through an escrow account of USD 62.9 million.

Total current liabilities amounted to USD 415.1 million at the end of first quarter of 2024 compared to USD 441.6 million last quarter. Decrease in trade payables and tax payable, offset by increase in derivative liability due to strengthening of the oil price. Total current liabilities consist of USD 129.2 million in taxes payable, USD 125.0 million in RBL facility, USD 48.8 million of current derivatives related to oil price hedges (non-current amounted to USD 84.0 million), USD 70.0 million in liabilities to DUC operator, USD 13.3 million related to VAT payable, USD 21.6 million in accrued cost including accrued interest expenses and USD 1.0 million related to trade payables.

First Quarter 2024

6

Financial review continued

Selected data from the consolidated statement of cash flows

USD million	Q1 2024	Q4 2023	Q1 20231)	YTD 2024	YTD 2023
Cash flow from operations1)	88.4	104.1	158.1		88.4	158.1
Net cash flow from operating activities	76.8	(85.3)	158.1		76.8	158.1
Cash flow used in investing activities	(73.5)	(83.0)	(88.5)		(73.5)	(88.5)
Cash flow from financing activities	(12.3)	29.5	(9.5)		(12.3)	(9.5)
Net change in cash and cash equivalents	(9.0)	(138.9)	60.2		(9.0)	60.2
Cash and cash equivalents	157.7	166.7	328.5		157.7	328.5

1)Cash flow from operations is defined as Net Cash flow from operating activities excluding tax payments.

Net Cash flow from operating activities amounted to USD 76.8 million for the first quarter of 2024, compared to a cash outflow of USD 85.3 million for the previous quarter. Previous quarter was influenced by a tax payment of USD 189.4 million, offset by decreased revenue due to lower gas prices net of hedging and lower volumes sold of oil and gas. Cash flow from operations (excluding tax payments) amounted to a cash inflow of USD88.4 million for the first quarter, compared to USD

104.1 million for the previous quarter. Current quarter had a negative effect from working capital of USD 2.2 million compared to a positive effect of USD 10.9 million in previous quarter, this includes changes on trade payables, prepayments and a reduction in the oil inventory. Net Cash flow from operating activities excluding changes in working capital amounted to a cash inflow of USD 78.8 million for the first quarter of 2024, compared to cash outflow of USD 96.2 million for the previous quarter.

Cash flow used in investing activities amounted to an outflow of USD 73.5 million for the quarter, compared to USD 83.0 million for the previous quarter. The cash flow used in investing activities was mainly related to investments in the DUC asset of which USD 54.0 million related to the Tyra Redevelopment project, USD 1.4 million in preparation work related to the Tyra Hub and satellites, USD 4.6 million related to the infill well on Halfdan, USD 1.0 million related to Carbon footprint reduction (CFR) projects on Halfdan, USD 1.0 million related to Gorm life extension work and USD 2.2 million related to other minor projects, in addition USD 10.9 million in abandonment cost mainly related to decommissioning of Dan Echo, offset by USD 1.8 million of cash acquired (net of acquisition cost) from the acquisition of CarbonCuts.

Cash flow from financing activities amounted to an outflow of USD 12.3 million for the first quarter of 2024, compared to an inflow of USD 29.5 million for the previous quarter. The cash outflow in the current quarter was related to interest payments on the RBL facility. The inflow in previous quarter was related to an RBL drawdown of USD 50 million, offset by interest payments on both the RBL facility and on BNOR14.

Net change in cash and cash equivalents amounted to negative USD 9.0 million at the end of the quarter compared to USD

138.9 million for the previous quarter. Cash and cash equivalents were in total USD 157.7 million at the end of first quarter

2024.

First Quarter 2024

7

Financial review continued

Financial Risk Mitigation

The Company actively seeks to reduce exposure to the risk of fluctuating commodity prices, in addition to interest rate and foreign exchange risk as required, through the establishment of hedging arrangements. To achieve this, BlueNord has executed a hedging policy in the market and entered into forward contracts. More details on BlueNord's hedging policy can be found in note 13.4 as well as further detail on BlueNord's financial risk management is outlined in note 2 to the financial statements in the 2023 Annual Report which is available at www.bluenord.com/reports-and-presentations/.

The Company has a USD 1.0 billion swap to fix the floating interest rate exposure under the RBL facility from 1 Nov 2021 until 30 June 2024. The Company pays interest on RBL cash drawings equal to 0.4041 percent plus the applicable margin until expiry of the contracts.

During Q1 2024 the company entered foreign exchange hedges to secure fixed USD to DKK exchange rates at a nominal amount of USD 22 million equivalent to DKK 150 million, for selected future payments in relation to taxes, VAT and cash calls related to the Company's forecast cash-flows.

The table below summarises the quantity of volume hedged and average price at the end of the first quarter.

	Volume hedged oil	Average hedged price	Volume hedged gas	Average hedged price
	(boe)	($/bbl)	(MWh)	(EUR/MWh)
2024 (Q2-Q4)	2,814,000	68.9	1,440,000	42.7
2025	3,390,000	74.1	1,395,000	37.4
2026	1,500,000	73.5	375,000	30.7

First Quarter 2024

8

Operational Review

Production

Key figures	Unit	Q1 2024	Q4 2023	Q1 2023
Dan hub	mboepd	7.8	7.9	8.1
Gorm hub	mboepd	4.0	4.3	4.4
Halfdan hub	mboepd	11.8	12.7	14.1
Tyra hub	mboepd	(0.2)	-	-
Total production	mboepd	23.5	24.9	26.6
Over/under-lift	mboepd	(1.1)	(0.5)	(0.3)
Net sales	mboepd	22.4	24.4	26.3
Oil sales	mboepd	16.8	18.5	19.6
Gas sales	mboepd	5.6	5.9	6.7
Operating efficiency1)	%	90.2 %	91.5 %	89.0 %

	YTD 2024	YTD 2023
	7.8	8.1
		4.4
4.0
	11.8	14.1
		-
(0.2)

23.5 26.6

(1.1) (0.3)

1. 26.3

1. 19.6

5.66.7

90.2 % 89.0 %

1. Operating efficiency is calculated as: delivered production / (delivered production + planned shortfalls + unplanned shortfalls)

Average production in Q1 2024 was 23.5 mboepd which is well above the Q1 guidance of 22.0-23.0 mboepd. The quarter has offered several significant highlights, namely: Start of production from the Halfdan infill well HBA-27B,start-up of the Tyra II facilities, initiation of the Skjold Gas Production Acceleration pilot (SGPAP), completion of the WROM campaign on Dan and start of the WROM campaign on Halfdan.

Dan hub

The production from the Dan hub has been strong in Q1 2024. This is mainly based on the WROM campaign and the high operational efficiency that reached an impressive 97% in March. The WROM campaign on Dan which started mid 2022 was finalized in January 2024. In this campaign 50 well interventions have been carried out with a total addition of 2P reserves of ca. 6.8 mmboe, net.

In February, shortfalls of ca. 1.3 kboepd, net were experienced on the Dan hub due to an issue with the exhaust system on the Dan FG IP/HP compressor. Repair of the exhaust system was finalized on 17. February, after which the production has been stable.

Gorm hub

The production from the Gorm hub was in line with expectation in the first quarter of 2024. The Skjold gas acceleration pilot project (SGPAP) was initiated by gradual reduction of water injection into the Skjold field. At the same time, gas export from the Gorm hub has commenced though the newly establish export route to Halfdan.

The SGPAP project is a partial gas depletion project, in which water injection in four injection wells in the eastern and western part of the Skjold field is to be stopped, allowing for increased gas and oil production by natural depletion. After initial gradual reduction of injection in the planned four injectors, there has been no injection in the planned four wells since 12 March.

In March, planned maintenance on the Gorm compressor was carried out during a partial S/D. Some of the planned maintenance work on Gorm has been moved to late April, resulting in the March production from Gorm being higher than expected.

Halfdan hub

On Halfdan production from the Halfdan Tor NE infill well HBA-27B commenced on 26 March the production is in line with expectations. To date, it has not been possible to test the well due to the production rate exceeding the capacity of the test separator, which means that the exact production from the well cannot be reconciled. HBA-27B is expected to be tested during Q2 2024. During drilling and stimulation of HBA-27B the wells HCA-06,HBB-01, and HBB-10 have been periodically closed in. Since start-up of HBA-27B these wells are back on production.

First Quarter 2024

9