Market development and operational focus

The global oil demand decreased during 2008 and is expected to deteriorate further in 2009 which has resulted in a considerably lower oil price. At the same time, the oil price has increased from $35 per barrel in the beginning of January 2009 to be stabilized around $50 per barrel in the end of the first quarter.

Operational review:

PA Resources business strategy is to acquire, develop, exploit and divest oil and gas assets and to conduct exploration activities to find new reserves. The group has operations in Tunisia, UK, Denmark, Greenland, Netherlands, Equatorial Guinea and the Republic of Congo.

Production and sales

First Quarter of 2009 (1 January – 31 March)

Total production amounted to 783,000 (1,031,000) barrels of oil during the first quarter excluding the divested Norwegian operations. Average production amounted to 8,700 (11,300) barrels per day. Production refers to six fields in Tunisia.

A total of 817,400 (1,222,400) barrels of oil was sold during the quarter to an average price of 43.47 (96.49) $per barrel. Total outstanding oil inventory is accounted for as if the oil inventory is sold in accordance with the accounting principle Net Entitlement Method.

Revenues: The oil inventories excluding the part paid as royalty decreased during the first quarter by 141,731 barrels and amounted to 63,527 barrels at the end of the quarter. Sales, and therefore also the inventory, vary between the quarters since the point of time for the so called “liftings” is due to when a storage tank has been filled and the customer collects the agreed volume.

Production forecast

PA Resources’ production forecast is unchanged compared to the full-year report 2008. The forecast for 2009 is that the average production is expected to amount to between 11,000 and 14,000 barrels of oil equivalents per day.

Drilling program 2009/2010

The following drillings are planned for in 2009 and 2010 on licenses where PA Resources owns shares. The drilling program is continuously revised based on investment budget and prioritized commitments.

Region North Africa Tunisia

PA Resources has been operating in Tunisia since 1998 and holds interest in six production and four exploration licenses. Important events during the quarter

Production and drilling on Didon the four wells Didon-4, Didon-5, Didon-6 and Didon-7 have delivered at good regularity during the quarter. The production was stopped partly or fully during in total 14 days due to installation of the drilling rig at the platform as well as planned maintenance.

The drilling rig ENSCO 85 has been moved to the Didon platform. The environment impact assessment has been completed and the drilling of an additional production well, Didon-10, has been approved. The well was spudded in the end of March 2009.

Production on Ezzaouia

The Ezzaouia-18 well started to produce in the end of December and in February a jet pump was installed to increase the production level.

Production on Douleb/Semmama/Tamesmida

The acquired 3D seismic for Douleb was being processed and analyzed during the quarter.

Planned activities

Maintenance on Didon

The final installation of the hydro cyclones module and remote control upgrade of the platform is planned to take place during the second quarter. A new cooling unit will also be installed when Didon-10 is completed and put on stream.

Exploration drilling at Jenein Centre

The first exploration well will be spudded onshore at the permit Jenein center in southern Tunisia during the second quarter 2009.

Drilling at Jelma permit

The plan is to drill two exploration wells on the permit during 2009, as well as acquiring 300 kilometers of 2D seismic data.

Drilling at Zarat:

In 2010, two commitment wells are planned to be drilled on the Zarat permit, one exploration well in order to test the Massinissa prospect or the El Fell prospect, and one appraisal well on the Elyssa discovery.

Region West Africa Republic of Congo (Brazzaville), Equatorial Guinea

PA Resources owns shares in three licenses offshore the Republic of Congo (Brazzaville) of which one of the licenses, the Azurite field, is under development and is expected to be taken into production in the middle of 2009.

PA Resources also owns shares in two exploration licenses in the Gulf of Guinea offshore Equatorial Guinea Important events during the quarter

Development of the Azurite field, Republic of Congo The Azurite field development shows progress according to the plan. The drilling and the production will be carried out with the world’s first FDPSO vessel (Floating, Drilling, Production, Storage, Offloading).

The FDPSO Azurite left Singapore in the end of January 2009 and arrived in the Republic of Congo in the beginning of March 2009. The vessel has been hooked up on the field with 12 pre-installed anchors and chains in 1,400 meters water depth. Preparations for the drilling of the first production well started in April 2009.

Production start is planned for in the end of the second quarter and PA Resources’ share of the maximum production capacity is estimated to be 14,000 barrels per day. This level is estimated to be reached by the end of 2009 at the earliest.

Approved farm-out in Marine XIV, Equatorial Guinea

In the beginning of March 2009, the agreement concerning farm-out of shares in the license Marine XIV was formally approved by the government of Congo.

A 3D seismic survey has commenced during the first quarter 2009.

Development of the Benita field in block I, Equatorial Guinea

In the end of 2008, the license partners submitted a plan of development and operations for an oil field in the Benita structure. The government commenced the formal review of the plan in January 2009 and the approval process is still ongoing. An approval, together with the assignment to develop the area, is expected during the second quarter. The partners are ready to initiate the development as soon as the approval is received. First oil is estimated during 2012.

Planned activities

Activities at the Azurite field, Republic of Congo

The drilling of the first production well commences in April 2009 and first oil is expected during the summer 2009. The field will be taken into operation gradually during the year. Three production wells and two water injection wells will be drilled during 2009. A total of nine wells are planned on the field.

Exploration drilling on Mer Profond Sud, Congo

One exploration well is planned to be drilled during the second half of 2009 and a deep-sea rig for the drilling has been secured. A second exploration well may be drilled during the year.

Exploration drillings in block I, Equatorial Guinea:

Two additional exploration wells are planned to be drilled in block I during 2010. The objective is to reach the deeper and proved oil bearing Miocene structure which was encountered in the previously drilled Diega well.

Region North Sea United Kingdom, Denmark, Netherlands and Greenland

PA Resources owns shares in 12 exploration licenses, whereof five are located on the British continental shelf, four offshore Denmark, two offshore the Netherlands and one offshore western Greenland. The Group is operator for all licenses except for block Q7 and block Q10a in the Netherlands, as well as block 9/06 and block 9/95 in Denmark.

Important events during the quarter Acquisition of Danish licenses completed

PA Resources has received final approval from authorities concerning the previously announced acquisition of a 26.8% participating interest in block 9/06 (Gita) and block 9/95 (Maja) on the Danish continental shelf.