Petrolia NOCO : SE- PRELIMINARY NON AUDITED 2022

H2 2022

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PETROLIA SE ('the Company' or 'the Group') financial report for second half-year ended 31 December 2022 and preliminary unaudited annual results 2022:

Highlights

• Stable activity in the Energy Service Division resulted in an EBITDA for the second half of 2022 of USD 6.3 million compared to USD 5.9 million during the same period in 2021.
• The Energy Division reported a loss from associated companies of USD 0.9 million for the second half of 2022 compared to a loss of USD 2.4 million in the same period in 2021
• Investment in associated company, Petrolia NOCO AS is carried at USD 0.6 million, in line with the equity method, compared to a share of the market capitalisation of USD 8.1 million (www.notc.no). This treatment is consistent with previous years
• Shareholders' equity as at 31 December 2022 was USD 0.66 per share, compared to USD 0.66 per share in 2021. Share price was NOK 4.02, or USD 0.41 at an exchange rate of NOK/USD of 0.1014 compared to a share price of NOK 4.65, or USD 0.53 at an exchange rate of NOK/USD of 0.1134 in 2021.

Key figures - Alternative Performance Measures

In reporting financial information, the Group is using Alternative Performance Measures (APMs).

APMs aim to enable users of financial Information to better understand the financial and operating results of the Group, its financial position and cash flow statement. APMs should always be considered in conjunction with the financial results prepared in accordance with the IFRSs and they are not considered to be a substitute or superior to IFRSs.

The use of the APMs referred herewith below are used to assist users of the report to better understand the financial performance of the Group.

Operating Revenue

Operating revenue is the revenue that a company generates from its primary business activities.

Operating Profit

Operating profit is the profit from the company's operations (gross profit minus operating expenses) before deduction of interest and taxes. Operating profit serves as a highly accurate indicator of a company's health because it removes all extraneous factors from the calculation. All expenses that are necessary to keep the business running are included.

EBITDA

EBITDA is operating result before interest, tax, depreciation and amortisation. The EBITDA is primarily used to measure the company's operational performance by removing the cost of debt financing, taxes and non-cash elements such as depreciation and amortisation.

Total comprehensive income / (loss) for the year

Net Income (Loss) + / - Other Comprehensive Income / (Other Comprehensive Loss).

Earnings/(loss) Per Share

Earnings/(loss) per share (EPS) is calculated as profit/loss (before other comprehensive income) allocated to the majority, divided by the outstanding shares of its common stock:

H2/2022 PETROLIA SE

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Operational development, market and outlook

Energy division

Within the Energy division, the 49.9% owned associated company Petrolia NOCO AS ('Petrolia NOCO') is actively developing its licence portfolio. It has established a cost efficient, robust and scalable business model and aims to change the traditional license partnership model from an organisation consisting of different partners to one collaborative team - sharing openly and transparently instead of selectively. All this, with the shared objective of creating more value for the next generation.

Petrolia NOCO actively pursues farm-in and farm-down opportunities and participate in upcoming APA rounds. The company has a 0.825% working interest in the Flyndre unit and a 4.35% working interest in the Enoch unit and a small volume of production. The company now has a total of thirteen licences, one of which as operator.

The company reported its first commercial oil discovery in 2020. The Dugong discovery in PL 882 was in 2021 reported to be in the lower end of 40 - 108 million barrels of oil equivalent. The PL 882 license partnership is currently contemplating new field development solutions and studies involving tieback to the Snorre facilities.

Petrolia NOCO owns 20% in PL 882 and 30% in the adjacent licenses PL 992 and PL 994, which hold interesting prospectivity. PL 1106 (20%) and PL 1107 (30%) awarded in January 2021 and PL 1181 (60%) awarded in January 2023 are located in the same area.

PNO drilled the Bounty prospect in PL 935 in Q2 2022. The well was determined as a dry well with shows and was permanently plugged and abandoned. The partners are now evaluating the data obtained to consider if additional wells shall be drilled. The prospect is located in the Frøya High area. Petrolia holds 10% in PL 935.

In 2021 PNO farmed-down 40% of its interests (from 60% to 20%) in licences PL 1013 and 1013 B, including operatorships, to facilitate drilling of the Løvmeis prospect in 2024. The prospect is located close to existing infrastructure which allows a fast-track, cost efficient development.

Energy service division

During 2022, we saw dramatic events that considerably impacted energy prices worldwide. Gas prices have at times surged to never seen levels, especially in Europe. Presently, gas prices have come significantly down and the Board expects gas prices to trend towards international LNG prices. In addition, oil prices rose to levels not seen since 2014, however oil price has been somewhat volatile but seems to level out at around 80 USD/bbl. The currency market has also been severely impacted where USD and Euro have reached parity. This has negatively affected many local currencies. As most of the world came out of the Covid pandemic, there has been a supply shortage of oil and considerable inflation in most regions. There is also a shortage of skilled personnel due to higher activity after the pandemic. The Energy service division has seen higher revenues but as costs have also increased, the results are in line with budgets. In Norway, the oil service activity has stayed at the same level that was experienced towards the end of 2021, at pre-pandemic level. Expectations are that it will stay at this level in 2023 as more oil and gas projects will commence. Overall, the Board expects activity to increase in many regions. However, the Board considers that the oil industry will be somewhat volatile in the foreseeable future due to fluctuations in oil prices.

The Energy service division owns and operates two land rigs in Iraq and also provides drilling contracting services by using a hired-in land rig. Rig activity increased in the second half of 2022. The rigs are offered and operated in conjunction with other services provided by the division, resulting in increased revenues.

Through CO2 Management AS, the division is working on CO2 mitigation measures for the European hard-to-abate industry.

CO2 Management AS, in collaboration with partner bremenports GmbH & Co. KG, have continued to mature the multimodal CO2 hub project in the Bremen region. Germany is Europe's biggest CO2 emitter. The Bremen project focuses on solutions for inland transport and interim storage of liquid CO2, which allows for an efficient and flexible infrastructure without the need of a CO2 backbone pipeline. Multimodal hubs will have an instrumental role in the future CCS value chain by connecting inland CO2 sources with offshore storage opportunities below the North Sea or elsewhere.

Consultancy services by the company include general CCS advisory, solutions for CO2 transport and storage, and decarbonisation pathways for the upstream O&G industry. Additionally, CO2 Management AS and its subdivisions

H2/2022 PETROLIA SE