PA Resources reports impairment charges of SEK 2 100 million and breaches the financial covenants in its bond loans

PA Resources carried out its annual impairment tests of its oil and gas and
exploration assets during the 3rd quarter 2014 and no impairment requirement was
identified at that time. However, due to the significant fall in current and
expected oil prices further impairment tests have been carried out during the
closing process for 2014. The tests have resulted in an impairment loss with a
net equity effect of approximately SEK 2 100 million which will be recorded in
the year- end report 2014, due to be released 4 February 2015, where a final
number will be confirmed and further details  provided.

The loss arising from the impairment charge will most likely result in the
company’s shareholders’ equity being less than one-half of the registered share
capital. As a consequence, the company’s board of directors has resolved to
prepare a balance sheet for liquidation purposes. Should the balance sheet prove
that the shareholders’ equity is less than one-half of the registered share
capital, even after applying those adjustments to the company’s balance sheet
that the Companies Act allow for the purpose, then the company is required to
issue notice to the company’s shareholders to attend a general meeting. Such
general meeting of shareholders shall resolve whether or not the company must go
into liquidation or continue its operations. If the meeting resolves that the
company will continue its operations the equity must be restored prior to
another general meeting which is to be held within eight months after the
initial meeting. Such an equity restoration is dependent upon a successful
outcome of the on-going refinancing discussions with the company’s key
stakeholders.

The impairment charge also means that the company will be in breach of its
financial covenants for its SEK and NOK denominated bond loans as of 31 December
2014. The company intends to summon to bondholders’ meetings for its outstanding
bond loans, to propose amendments or waivers for certain of the provisions under
the terms and conditions of the bond loans including further deferrals of
interest payments beyond February 2015. The summoning of the bondholder meetings
will be announced in a separate press release containing more information in due
course.

Stockholm 20 January, 2015
PA Resources AB (publ)

For additional information, please contact:

Tomas Hedström, Chief Financial Officer

Phone:   +46 8 545 211 50
E-mail:   ir@paresources.se

PA Resources AB (publ) is an international oil and gas group which conducts
exploration, development and production of oil and gas assets. The Group
operates in Tunisia, Republic of Congo (Brazzaville), Equatorial Guinea, United
Kingdom, Denmark, Netherlands and Germany. PA Resources is producing oil in West
Africa and North Africa. The parent company is located in Stockholm, Sweden. PA
Resources’ net sales amounted to SEK 1,049 million in 2013. The share is listed
on the NASDAQ OMX in Stockholm, Sweden. For additional information, please visit
www.paresources.se.

The above information has been made public in accordance with the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
published at 08:30 am CET on 20 January 2015.