As announced by the Company on July 01, 2019, Magnora ASA will pay MNOK 52.6 to its shareholders on 11 July 2019. This capital reduction is in line with the company´s strategy outlined on December 10th, 2018. We are proud to have returned in total MNOK 499.7, corresponding to a distribution amount of NOK 9.50 per share, to our shareholders in dividend and share capital reductions over the last 9 months. The board of Magnora intends to carry-out further distributions of capital to shareholders, in the form of dividends and/or distributions of capital, and has also launched a share buyback plan. The intention is to distribute the cash flow generated by our royalty agreements, in addition to any excess cash held by the Company, to the extent legally permitted, to our shareholders.

As a consequence of the transaction between Magnora ASA (the “Company”) and Sembcorp Marine Integrated Yard Pte Ltd (“SMIY”) in September 2018, the Company´s main business activity is now focused on managing the license agreements retained by the Company. These license agreements are: The Western Isles agreement and the Shell Penguins agreement (the “Agreements”). These Agreements have potential to generate significant cash flow for the Company for the coming years.

MAGNORA´S MAIN BUSINESS ACTIVITY: Magnora´s main business activity is focused on managing the Agreements: The Western Isles agreement gives Magnora the right to USD 0.5 per barrel of oil produced and offloaded from the Western Isles FPSO (the “FPSO”) during the lifetime of the FPSO. The Western Isles development is expected to have a field life of 15 years. The FPSO is expected to have a design life of 20 to 25 years, and thus could produce oil for longer than 15 years. Magnora´s right to payments is tied to the FPSO, irrespective of operating location and field. Any potential oil field tied-back to the FPSO or any redeployment, irrespective of location, will also be subject to the payment obligations under the agreement.

The Western Isles agreement is expected to generate income for Magnora in the years to come. The FPSO is owned and operated by Dana Petroleum and is currently producing at the Western Isles development in the UK sector of the North Sea. First oil was achieved in Q4 2017. The FPSO has a production capacity of 44,000 barrels per day. The related revenue for Q1 2019 was NOK 12.6 million (NOK 13.4 million) which was the equivalent of approximately 33 000 barrels per day on average for Q1 2019 compared with 33 550 on average for Q4 2018.

The Penguins agreement gives Magnora the right to license income of approximately USD 16 million from the Shell Penguins FPSO project. The Penguins FPSO is currently under construction in Asia. The payments of USD 16 million in total, are tied to three milestones. These three milestones are: 1) the completion and sail away of the FPSO from the construction yard 2) the installation of the FPSO at the field and achievement of first oil, and 3) the successful production, offloading and gas export of 4 million barrels which is estimated to be approximately 6 months after successful start-up. It is anticipated that the construction of the Penguins FPSO will be completed in Asia during mid-2021. Achievement of the further milestones will then take place subsequently.

POTENTIAL NEW INVESTMENTS: The Company has also initiated a process of evaluating potential new investment opportunities with the objective of realizing the strategic potential of the Company and to generate further shareholder value.

* * *

For further information, please contact:

Erik Sneve, CEO, Magnora ASA

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.