Interim report January - June 2021

January - June 2021

• Total revenue: SEK 30 (20) million
• Operating result: SEK -6 (0) million
• Operating result excluding write down: SEK 3 million (0) *
• Net income: SEK -8 (1) million
• Net income excluding write down: SEK 1 million (1) *
• Earnings per share: SEK -0.26 (0.03)

*The company expensed all costs related to drilling Orlinskaya-1 well, SEK 8.6 million

Statement from CEO

Dear Shareholders,

I am pleased to announce the results of the first half of 2021 that was rich with events.

In spite of the continuing global COVID-19 pandemic the oil market is recovering with the oil prices reaching pre-crisis levels. The additional production from the new Yanbayskoye field combined with improved oil prices helped us to ensure profitable operations in spite of significant capital investments and natural production decline within our main Ayazovskoye oil field.

One of two Suyanovskaya licence exploration wells drilled recently led to a discovery of the new Yanbayskoye oil field that was put in production ahead of the original schedule. The other exploration well flowed non-commercial volume of hydrocarbons yet provided valuable information on the geology of the area. We plan to revisit the potential of Orlinskaya prospect once we have the new seismic data. The Yanbayskoye drilling success lays the path to unveil even bigger exploration potential of the Suyanovskaya licence, and we are planning to continue both production and exploration wells drilling based on the results of the ongoing 2D and 3D seismic campaign to be completed before the year end.

Pavel Tetyakov, CEO