Vår Energi unlocking high-value barrels in the Balder area

22 Oct 2024 07:00 CEST

Sandnes, Norway, 22 October 2024: Vår Energi ASA (OSE: VAR, the "Company") and
license partner Kistos Energy Norway AS have reached the final investment
decision for the Balder Phase V project in the Balder area. The fast-track
development will be a key contributor to sustaining long term production and
value creation beyond 2025.

The project will develop 33 million barrels of oil equivalent (mmboe) of gross
proved plus probable (2P) reserves for capital spend of USD ~690 million gross
and with an attractive breakeven price of around 30 USD per barrel. Drilling
will commence in the first half of 2025 and be complete in 2026, with the first
wells coming onstream by the end of 2025.

With ongoing development projects coming on stream over the next three quarters,
Vår Energi is on track to reach daily production levels of around 400 thousand
barrels of oil equivalent per day by the end of 2025. The Company aims to
sustain production long term through developing over 20 early phase projects.
Balder Phase V is the first of these projects to be sanctioned and the Company
expects multiple further project sanctions during 2025.

COO, Torger Rød said: "The Balder area in the North Sea is one of Vår Energi's
core hubs and constitutes significant future resource potential. With the
refurbished Jotun FPSO on track to commence production from the field within Q2
2025 we have the tool to unlock additional production. The sanctioning of Balder
Phase V aligns with our strategy of maximising value in our core hub areas by
utilising existing capacity and infrastructure. I am very pleased to see how the
upgraded FPSO will contribute to amplifying value creation from the area with
such immediate effect. Beyond Balder Phase V, we are also maturing a Balder
Phase VI project ensuring further long-term value creation in the area."

Balder Phase V involves drilling of up to six infill wells using all the
remaining available template well slots in the existing Balder subsea facilities
and tied back to the Jotun FPSO for processing. The drilling of multilateral
wells has resulted in extending the reservoir area, increased recoverable
reserves and recovery factor, reducing the number of wells required.

"The use of advanced multilateral well technology enables targeting high value
barrels, with a low breakeven, high rate of return and short time to market,
showcasing our value driven approach to applying technology", Mr Rød ends.

The field is operated by Vår Energi (90%) with Kistos Energy Norway AS as
partner (10%).

Contact

Investor relations

Ida Marie Fjellheim, VP Investor Relations

+47 90509291

ida.fjellheim@varenergi.no

Media relations

Andreas Wulff, VP Public Affairs

+47 92616759

andreas.wulff@varenergi.no

About Vår Energi

Vår Energi is a leading independent upstream oil and gas company on the
Norwegian continental shelf (NCS). We are committed to deliver a better future
through responsible value driven growth based on over 50 years of NCS
operations, a robust and diversified asset portfolio with ongoing development
projects, and a strong exploration track record. Our ambition is to be the
safest operator on the NCS, the partner of choice, an ESG leader with a tangible
plan to reduce emissions from our operations by 50% within 2030. Vår Energi has
around 1400 employees and equity stakes in 43 fields. We have our headquarters
outside Stavanger, Norway, with offices in Oslo, Hammerfest and Florø. To learn
more, please visit varenergi.no.

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