PA Resources AB : PA Resources to recognise SEK 1,750 – 1,850 million of one-off costs

PA Resources'ongoingannual update of oil and gas reservesas well asimpairment tests haveindicateda needto impair thebook value of assetsin the Republic ofCongo.The impairment is primarily due toa reduction ofreservesat the Azurite field, resulting in an impairmentofSEK 1,450-1,550 million.In addition, a write down of theproduction wellat the DidonNorthinTunisia will be doneas well asthe remainingbook value ofthe two divestedTunisianfields El BibaneandEzzaouia.

Total write down and impairment lossesare estimatedat presentto be betweenSEK 2,050 - 2,150 million. Net, after taxes, the costs amountto betweenSEK1,750 - 1,850 million.These costs arenon-cashitems andthe final determination ofamountwill be reported in theYear-end Reportfor 2011.

- As previously reported, oil production atAzurite Fielddid not reach expected levels in 2011 and as a result a corresponding, substantial reduction in reserves now leads to this impairment.Group cash flow is unaffected andis expected to bepositive in 2012thanks to production volumes from the Aseng Fieldin EquatorialGuineain combination withsignificantly lower annual investments. Work continues in the Mer Profonde Sud licence to identify potential prospects which could form tie backs to the Azurite production vessel in the future, says BoAskvik, President and CEOat PA Resources.

Stockholm, 23 January 2012
PA Resources AB (publ)

For additional information, please contact: 
Bo Askvik
President and CEO, PA Resources AB
Mobile: [phone]
E-mail: [e-mail]

or

Nicolas Adlercreutz
CFO, PA Resources AB
Mobile: [phone]

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, Greenland, Netherlands and Germany. PA Resources is producing oil in North Africa and West Africa. The parent company is located in Stockholm, Sweden.
PA Resources' net sales amounted to SEK 2,227 million during 2010. The company is listed on the NASDAQ OMX in Stockholm, Sweden (segment Mid Cap). For additional information, see 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 23.00 CET on 23 January 2012.