SANDNES, NORWAY: Vår Energi ASA has resolved to launch an initial public offering (IPO) of shares in the company. Subject to approval of the prospectus, the listing application and successful completion of the offering, the shares of Vår Energi will be admitted to listing and commence trading on Oslo Børs on a conditional trading basis on 16 February 2022 under the ticker “VAR”.

Unconditional trading of the Shares is expected to commence on 18 February 2022.

Shares will be offered for sale within an indicative price range of between NOK 28.00 and NOK 31.50 per share, corresponding to an equity value of Vår Energi of between NOK 70 billion and NOK 79 billion. The final price per share, may, however, be set above or below this indicative price range.

The offering will consist of an offer up to 220 million existing shares offered in equal parts by the Company’s shareholders Eni International B.V. and HitecVision, through Point Resources Holding AS, who currently own 69.85% and 30.15%, respectively, of Vår Energi’s outstanding shares.

In addition, the selling shareholders will have an option to sell in equal parts up to 55 million additional existing shares through an up-size option.

The The Vår Energi ASA IPO will comprise up to 8.8% of the total number of shares in issue when excluding any Additional Shares and the Up-size Option, and up to 12.7% of the shares in issue when including all Additional Shares and the Up-size Option. The Company expects that Oslo Børs will grant an exemption from the free float requirement of 25%.

The selling shareholders will receive the proceeds from the sale of Sale Shares and from any Additional Shares sold and not re-delivered.

The selling shareholders will be subject to customary lock-up restrictions for a period of 180 days after the IPO. The Company and members of the Group’s management and the Board of Directors will be subject to a 360-day lock-up period respectively.

Furthermore, the company announced an update to its previously communicated dividend policy for 2022. In late 2021, Vår Energi determined a dividend of minimum USD 700 million for 2022.

In addition, Vår Energi has communicated a dividend of USD 200 million for Q1 2022. Considering the current market conditions and the outlook for a continued supportive commodity price environment and Vår Energi’s strong cash flow generation, the Company has decided to increase its dividend guidance for the full year 2022 to a minimum of USD 800 million, and the Q1 2022 dividend to USD 225 million.

As a further reflection of the strong cash flow currently generated by Vår Energi (including the positive movement in certain working capital elements in January), the Company’s preliminary calculation of its net interest-bearing debt at 31 January 2022 decreased to approximately USD 3.9 billion, from USD 4.6 billion at 31 December 2021.

Vår Energi is a leading independent upstream oil and gas company on the Norwegian continental shelf (NCS). www.varenergi.no