PA Resources has decided to operate in the initial phases of the value chain. This means that the Group explores to find new oil reserves, develops production facilities and produces crude oil. PA Resources is not involved in the refining of crude oil into oil products or in the sale of oil products to the end customer.
Strategies
Profitable development of reserves
In order to increase reserves and organically increase the value of its assets, PA Resources must carry out exploration and development of existing licences and put these into production. This will generate continued strong cash flow as a basis for growth and investments. PA Resources strives to optimise the level of production based on the prevailing conditions in our producing fields and on the market.
Balanced asset portfolio
PA Resources focuses on spreading its assets across the three phases of the life cycle: exploration, development and production. The production profiles of producing fields vary depending on conditions in the field in question. These fields must therefore be balanced as far as possible. PA Resources also maintains geographical balance in its portfolio by focusing on the three regions of North Africa, West Africa and the North Sea. Our strategy includes spreading risk through shared ownership. Shared ownership reduces investment costs and can also allow development to take place more quickly.
Financing of growth
By continuing to reduce its debt/equity ratio PA Resources will strengthen its balance sheet and thereby its financial position. A lower debt/equity ratio creates better conditions for long-term, flexible financing which, together with the cash flow from production, enables us to make investments and to continue to grow. PA Resources also strives to minimise its exposure to financial risk in order to be well equipped to face further difficult times in the financing market. Assets are continually reviewed in the light of value increases and investment plans.