12 months Quarterly update for the financial period ended 30 September 2021

Cyberjaya, 26 November 2021 – Ping Petroleum UK Limited (“PPUK”) continues to be involved in the joint operations of the Anasuria Cluster. During the period from October 2020 to September 2021 , the Anasuria Cluster achieved an uptime of 77% with an average daily production rate of 2,143 bopd (barrels of oil per day). For the same period, a total of 974,000 barrels of oil were sold with an average realised price of USD63.47 per barrel. Average field OPEX during the same period was at USD25.2 per barrel of oil equivalent (boe).

During the period from July 2021 to September 2021 (Q3 2021), the Anasuria Cluster achieved an uptime of 69% with an average daily production rate of 2,015 bopd (barrels of oil per day). For the same period, a total of 191,770 barrels of oil were sold with an average realised price of USD75.6 per barrel. Average field OPEX during the same period was at USD24.6 per boe.

The production rate was lower than expected as it was affected by a riser failure, which occurred after the 2021 Offshore Turnaround in April/May 2021. The riser failure which had been isolated from the primary production system caused a drop in production uptime from 91% in Q1 2021 to 53% in Q2 2021. However, volume and average field OPEX per boe are expected to be affected by the isolation until the completion of the rectification work. Engineering and procurement activities are currently ongoing to fast track the rectification work which is currently targeted for Q2 2022.

Despite this, PPUK continued to achieve healthy profit margins in Q3 2021 which recorded gross profit and profit after tax amounting to USD 22.1million (37% gross profit margin) and USD 7.6million (12% net profit margin) respectively due to higher oil and gas prices.

License Awards

On 3 September 2020, PPUK was offered the award of a licence as part of the 32nd UK Offshore Licensing Round launched by the UK’s Oil and Gas Authority (“OGA”) in July 2019.The license awarded was License No P.2532 (Block 21/19c and 21/20c) which are contiguous with the Cook field. The block was awarded with a similar equity structure of the Cook field where PPUK holds 19.325% of the field equity.

Acquistion

On 23 September 2021, PPUK completed the acquisition of the remaining 50% in UK North Sea Block 21/6b, License P.2006 from Summit Exploration and Production Limited, a wholly owned subsidiary of Sumitomo Corporation.

Consolidated 12 months Quarterly update for the financial period ended 30 September 2021	Unconsolidated 12 months Quarterly update for the financial period ended 30 September 2021

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