The Company has defined a corporate strategy to create

value by continuing to build a global, diversified oil and gas company focused on value creation, cash flow and distributions. This is underpinned by four strategic pillars: ensuring safe, reliable and environmentally responsible operations; maintaining a high quality portfolio of reserves and resources; leveraging our full cycle capability to diversify and grow further; and ensuring financial strength through the commodity price cycle.

There is a risk the Company may fail to effectively implement this strategy. The Company may be unable to maintain sufficient leadership and organisation capacity to effectively manage and grow the business. Leadership may fail to effectively communicate or create alignment internally, leading to sub-optimal decision-making. The Company may

fail to identify or execute attractive M&A opportunities, or may over-estimate the value of assets acquired. The Company may be slow to respond to changes in the external environment that may merit a change to any of the four pillars of the strategy.

If implementation is ineffective, investors, creditors and lending banks may lose confidence in the leadership of the Company. Ultimately, the Company may fail to demonstrably create value for shareholders and other stakeholders.

Corporate strategy clearly defined, approved by the Board and communicated to the market

Strategic execution progress reviewed regularly with the Board

Senior executive team has a proven track record of delivering strategic growth, including executing and integrating large scale M&A, with regular Board assessment of performance

New organisation designed and implemented to deliver the defined strategy

Capital deployment, growth and financial metrics agreed with the Board and feature prominently in incentive compensation

Corporate model and M&A analyses evaluated across a range of scenarios

Detailed due diligence of acquisition opportunities undertaken prior to agreeing transaction terms

Regular two-way communication between employees and senior leadership to help build understanding and engagement

The Company may face a major accident resulting in personal

injuries, physical property damage and/or environmental impact. There is also a risk of a significant personal safety or physical security incident arising from natural disaster, pandemic, social unrest or other external cause. In addition to the potential to cause personal injury or harm to the environment, the production and financial performance of the business may be significantly degraded. The business may be subject to punitive fines and suffer damage to its reputation. A serious incident could also undermine the Company's ability to execute its strategy.

Strong safety leadership culture established with an emphasis on process safety and, in particular, including a strong tone from the top with leadership support to do the right thing

Newly merged organisation designed and resourced to support health, safety, environmental and physical security performance. Safety critical roles defined by management and protected from re-organisational risk in order to maintain a focus on safety

Safety and environmental performance metrics agreed with Board and feature prominently in business performance tracking and incentive compensation

Company Major Accident Prevention Policy (CMAPP) and HSES Policy in place that direct all Company activities, including contract work, supported by a defined management system and an HSES strategy and plan with relevant training; Safety

Cases in place for all assets

Active risk assessment process and management of change in place for

operated assets

Experienced Board HSES Committee established to provide oversight and

challenge; direct engagement by Non-Executive Directors with operations managers

HSES auditing and reporting in place with a focus on Major Accident Hazards (MAH) and with regular reporting to the Board HSES Committee

Performance monitoring in place including prompt and thorough investigation of incidents, sharing of learnings across the organisation and adoption of learning from third party incidents

Crisis management and emergency response processes practised regularly

COVID-19 pandemic response embedded including application of government advice

Senior management commitment to HSES values demonstrated through visits to operated facilities (subject to COVID-19 pandemic restrictions), participation in global and regional safety events, an annual Global HSES Day to promote a safety focus and emphasise its importance and an annual CEO Safety Award programme to recognise outstanding performance

Following the completion of a material acquisition, the Company

may fail to embed a cohesive organisation in the form of

a consistent culture, aligned values and clear roles and responsibilities. The Company may also fail to maintain sufficient capability and capacity across all levels of the organisation.

A failure to embed a cohesive new organisation may result in a lack of engagement, inertia or conflict among employees.

This may be heightened by the demands, uncertainty and change imposed on the new organisation by the work required to integrate the legacy businesses. Key employees

may leave, important capabilities may be lost, and the Company may be unable to attract suitable new talent, making it difficult to maintain sufficient capability and capacity across all levels. The Company may lack sufficient leadership bench strength to manage the business and

execute the strategy. Ultimately, a failure to manage this risk may heighten safety risk, constrain performance and impede strategic execution.

New organisation and compensation programme implemented with aligned terms and conditions, a competitive reward package and designed to ensure sufficient capability and capacity to deliver the defined strategy

Regular communication between employees and senior leadership to help build understanding and engagement and supported by staff surveys to encourage feedback

Direct access by the Non-Executive Directors to senior management through presentations to the Board and other meetings

Local and Global Staff Forums maintained including employee interactions with senior management and the Board

Staff counselling and grievance arrangements in place

Experienced Head of Diversity, Equity and Inclusion appointed to drive an inclusive environment

Experienced Integration Management Office established to oversee integration efforts related to organisation, as well as systems, policies and processes

Further activities planned for 2022 include:

- Rollout of a culture and values programme with clear linkage to strategic objectives

- Implementation of a global staff performance management process aligned to culture and values and with clear links to reward

- Design and rollout of a new talent development programme

- Implementation of common systems and processes across the Company to enable a common 'way of working' and improve efficiency

- Consolidation of offices in the UK to enable co-locating of work teams

The Company undertakes capital projects and drilling operations to explore for new resources, develop new discoveries, and increase production from or extend the life of existing producing assets.

Capital projects involve advanced engineering, extensive procurement activities and complex construction work, carried out under various contract packages at various locations. The Company may face delays, supply chain issues, cost overruns or unsatisfactory HSES performance in executing capital projects. The Company may also experience disruptive fiscal, regulatory, political, economic, social, security and weather conditions, including continued travel restrictions and quarantines due to the COVID-19 pandemic. In addition, geology and reservoir engineering and well performance are inherently uncertain and so the quality and volume of oil and gas produced from new developments, and consequently the reserves added and value created from the capital deployed, may differ from that expected. The Company may fail to add oil and gas reserves in a timely, profitable and safe manner leading to a decline in reserves, production and revenue.

The Company is obliged to decommission assets at the end of their useful life. The Company may fail to reliably estimate the cost of future decommissioning spend and may face incremental costs in connection with decommissioning obligations.

New organisation designed and resourced to manage the capital programme with experienced decommissioning team in place to execute the Company's decommissioning programme

Capital deployment and growth metrics agreed with Board and feature prominently in business performance tracking and incentive compensation

Processes in place to support the maturation of resources into developed reserves and ensure efficient deployment of capital

Rigorous technical and economic evaluation process in place with defined stage-gate reviews and decisions

Independent assurance team established to assure governance of capital investment activities, including decommissioning

Investment guidelines agreed with Board that standardise planning assumptions and investment hurdles to ensure consistent evaluation of capital investment opportunities

Drilling and capital costs benchmarked to understand relative performance with systematic lookbacks undertaken to assess and improve performance

Regular business performance reviews and reporting to monitor delivery

Annual lookback of capital programme undertaken to assess performance versus budget and versus estimates of costs and volumes at the time of project approval; learnings identified and shared

Independent review of the Company's reserves and resources undertaken

The Company seeks to ensure financial strength through the commodity price cycle. In the event the Company is unable to maintain sufficient access to capital, the Company may be unable to sufficiently re-invest in its existing assets or fund growth through capital investments and M&A as targeted in the strategy. The Company may be unable to service security or letter of credit obligations, including those related to decommissioning obligations. Ultimately, a failure to ensure sufficient access to capital would directly undermine the implementation of the strategy.

Robust financial framework and prudent capital allocation policy agreed with the Board and rigorously implemented

Diversified capital structure in place with low financing cost, including Reserve Based Lending (RBL) facility and an unsecured bond issue during 2021. Annual RBL redetermination programme undertaken to ensure available liquidity is known

for the forthcoming period

Ongoing engagement with lead-syndicate banks in the RBL facility maintained to ensure relationship remains strong

Disciplined hedging programmes in place to help manage exposure to commodity prices

(see also 'Commodity price exposure' risk below), interest rates and foreign exchange

Corporate model in place to facilitate oversight of the Company's financial position across a range of commodity price scenarios

Annual capital budgets set taking into account near term commodity prices and cash flow expectations with spending levels stress-tested against adverse scenarios

Insurance programmes in place to minimise the risk to the business (see also 'Third party reliance' risk opposite)

Oil and gas prices have fluctuated significantly in recent years, most recently due to the impact of the COVID-19 pandemic on demand, general economic uncertainty and the consequences of recent Russian action in Ukraine. The price of oil and gas is impacted by changes in global and regional supply and demand, and expectations regarding future supply and demand. Supply factors that influence pricing include the pace of new oil and gas developments, operational issues, natural disasters, adverse weather events, political and security instability, conflicts, and actions by major oil-exporting countries.

Demand factors that influence pricing include economic conditions, climate change regulations and the pace of transition to a low carbon economy. Consequently, it is not possible to accurately predict future oil and gas prices and prices may continue to remain volatile.

In order to safeguard its balance sheet, the Company has set a strategic intent to protect the business from excessive volatility, ensure liquidity through the commodity price cycle as well as to take advantage of market movements (see risk description under 'Access to capital' above). A sustained decline in oil and gas prices could undermine this strategy by reducing cash flow available to fund growth and distributions and impairing access to capital. In addition, excessive volatility in prices could impede business planning and financial decision-making.

Disciplined commodity price hedging programme in place aligned to risk appetite and designed to underpin the financial framework, limit downside risk, comply with Reserve Based Lending requirements and protect the value of acquired assets

Carbon hedging is conducted to actively manage the Group exposure to carbon pricing in the UK market, whilst ensuring regulatory requirements are met

Strong control framework in place that covers full hedging life cycle and includes monitoring activities to ensure the hedging programme is applied consistent with risk appetite

Following the completion of an acquisition, the Company may fail to manage the pace, scope and cost of integrating the acquired business. Integration synergies may not be realised in a timely manner, eroding investor confidence. The demands, uncertainty and change imposed on the new organisation by the integration work required may lead to confusion, disengagement or resignations among employees. The Company may be unable to establish a scalable operating model to support the efficient integration of further M&A that is targeted in the strategy.

Senior executive team has a proven track record of integrating large scale M&A

Experienced Integration Management Office established with clear governance model, regular Board updates, and resourced with employees who are familiar with the acquired businesses and have a proven track record of effective integration

Detailed integration plan developed with business and expert advisers, leveraging experience gained from prior acquisitions

Enterprise Management System being implemented to ensure the Company systems landscape is scalable to a growing business. Multidisciplinary project team in place with project risks challenged via third party assurance model

Regular internal communications in place to maintain employee awareness and engagement through to the completion of the integration process

The Company is reliant on a range of third parties to achieve its strategic objective to ensure safe, reliable and responsible operations, and to maintain a high quality portfolio of reserves and resources. These third parties include suppliers of products and services, joint venture (JV) partners, outsourced operators who operate some of the Company's assets on its behalf, downstream infrastructure owners and trading counterparties.

The recent industry downturn and the ongoing effects of the COVID-19 pandemic have led to financial distress and consolidation across the sector and disrupted capacity and capability. In addition, some third parties may be impacted by sanctions arising as a result of recent Russian action in Ukraine. Consequently the Company may be unable to readily procure cost-effective products and services to operate existing assets or undertake new capital projects. Financial distress among existing suppliers or JV partners may increase the likelihood of exposure to unsafe practices or non-compliance on matters such as Anti-Bribery and Corruption or Human Rights. JV partners may be unwilling or unable to meet funding commitments or invest new capital. Poor performance or damaged reputation of an outsourced operator or JV partner may tarnish the Company's reputation. In the event of insolvency in a JV partner, the Company may be required

to cover their long-term asset commitments. In addition, misalignment in objectives within a JV may lead to sub-optimal decision-making and the ability of the Company to influence this may be limited.

The Company is also reliant on third party infrastructure to transport produced oil and gas to market, a significant portion of which has been in operation for a number of years. A loss of availability or access to downstream infrastructure could directly impact production and revenue. In addition, new developments are dependent on the Company agreeing acceptable commercial terms with prospective downstream partners.

New partners and suppliers carefully assessed through due diligence and approval processes, supported by additional security arrangements as required

Existing partners and suppliers regularly engaged to monitor performance and risk exposure through proactive oversight and governance, enforcement of commercial agreements and with a culture of collaborative working to create value

Formal budgeting and tendering processes in place to govern material spend with partners and suppliers

Production monetisation routes in place for existing assets governed by contractual agreements. Commercial assurance and contract risk forms part of decision gate process for new developments

Insurance programmes in place include contingent Business Interruption insurance for loss of revenue following loss or damage to third party facilities identified as production bottlenecks

The Company may fail to implement sufficient information security measures to ensure the confidentiality, integrity, availability and regulatory compliance of Company information. In particular, the risk of a cyber-attack continues to increase due to a rising global threat, recent Russian action in Ukraine, the visibility of Harbour as a

newly enlarged entity and the number of personnel working remotely. The Company may fail to implement adequate cyber security precautions in order to efficiently prevent, identify or respond to such an attack.

A failure to manage this risk could result in heightened safety or environmental risk exposure or interruption to business operations which would undermine delivery of

the strategy. In addition, loss of commercially sensitive information, regulatory fines and ransom demands could damage the Company's reputation.

Experienced and fully resourced information and cyber security organisation established with clear accountability across all locations

Prioritised and budgeted work plan in place to transition legacy IT infrastructure in a controlled manner as part of establishing a new Company IT infrastructure platform

Defensive and preventative controls designed and implemented to an industry standard that include independent testing and assurance mechanics to check resilience and are subject to an annual Internal Audit. Business-led recovery measures in place to maintain business continuity and limit any material impact of a cyber security attack

Continuous strengthening of controls related to information and cyber security in line with the evolving threat landscape and regulatory requirements

The Company, its employees and contractors are subject to various laws and regulations governing conduct. These laws and regulations cover a range of activities such as fraud, bribery, corruption and facilitation of tax evasion.

A failure to maintain and demonstrate effective legal and regulatory compliance could lead to compliance breaches which could damage the Company's reputation, erode its values-based culture and result in financial consequences.

This could in turn lead to increased scrutiny from regulators and undermine the Company's strategy by impeding its ability to motivate employees, conduct business with partners and suppliers, and maintain access to capital.

Zero tolerance stance set for fraud, bribery, corruption and facilitation of tax evasion in any form that could be unlawful or otherwise undermine the legitimate business environment and damage the reputation of the Company

Business principles, values and Company policies outlining Company expectations communicated to all employees with relevant training. These include Board approved policies covering Code of Conduct, Sustainability, Modern Slavery and Tax

Governance structure established that complies with the UK Listing Rules (including UK Corporate Governance Code), including the appointment of a Senior Independent Director and a Relationship Agreement with EIG, the largest shareholder

Enforcement of the Company's Code of Conduct and the adequacy and security of the whistleblowing procedure monitored by the Audit and Risk Committee

Compliance monitoring and disciplinary arrangements maintained, including whistleblowing

During 2022, the Company will move to a single, global compliance programme which will improve efficiency and simplify approach

The Company operates or maintains interests in multiple countries including some where political, economic or social transition is taking place or there are sovereignty disputes. The political and security situation and the regulatory and fiscal framework in any of these countries may change and adverse changes could have an impact on the operations, profitability and future investment opportunities of the business.

Consequences may include increases in the regulatory burden, increases in tax or loss of relief, retroactive tax claims, price controls, limits on production or cost recovery, import and export restrictions, other changes in fiscal terms, cancellation of contract rights, and expropriation of property. Such consequences would undermine the Company's financial position and, in some cases, could put at risk our ability to successfully implement the strategy.

Constructive engagement maintained with relevant government and regulatory

stakeholders in the countries and regions where the Company does business

Contribution to industry representation maintained on key industry issues

Portfolio of interests maintained to diversify country risk exposure, including through an aim to establish a material production base outside the UK

Active monitoring of the local political, fiscal, social and security situations in place in regions where the Company does business or is proposing to enter