Panoro Energy - Group Operations Update: Dussafu Production Reaches 40,000 bopd

15 Nov 2024 07:31 CET

Oslo, 15 November 2024 - Panoro Energy ASA ("Panoro" or the "Company") is
pleased to provide an operations update in advance of its Q3 2024 results which
are scheduled for release on 20 November 2024.

At the Dussafu Marin Permit offshore Gabon gross production has reached targeted
levels of 40,000 bopd, while in Equatorial Guinea the first of two planned
infill wells was successfully put onstream at an initial gross rate in excess of
5,000 bopd on a restricted choke, in line with expectations.

As a result, Panoro's group working interest production has averaged
approximately 12,500 bopd in November to date, keeping the Company on track to
achieve its year end target of over 13,000 bopd as production is reinstated from
three further wells in Gabon and one additional infill well in Equatorial Guinea
is brought onstream.

Drilling has commenced at the Akeng Deep infrastructure lead exploration ("ILX")
well offshore Equatorial Guinea with the Bourdon ILX well offshore Gabon to be
drilled in early 2025.  These ILX wells represent exciting organic growth
catalysts with potential to add material value for modest financial exposure if
successful.

John Hamilton, CEO of Panoro, commented:

"We are rapidly closing in on our target of over 13,000 bopd group working
interest production, most likely ahead of time, with three wells still to be
placed back onstream at Dussafu and one infill well nearing start up at Block G.
While the scope of our capital projects for the year has increased, largely due
to the expanded programme in Gabon and rescheduled programme in Equatorial
Guinea, we have added an estimated 4 million barrels to Panoro's 2P reserve base
which bodes well for achieving a reserve replacement of over 100 per cent for
the year.

Panoro's outlook is one of higher production alongside decreasing capital
expenditure and with drilling now underway at the high-impact Akeng Deep ILX
well on Block S offshore Equatorial Guinea, to be followed by the Bourdon ILX
well at Dussafu offshore Gabon in early 2025, we have an exciting organic growth
pipeline of activity."

Production Update

· Current group working interest production has reached 12,500 bopd
· In Gabon, gross production at Dussafu has reached over 40,000 bopd with
production from three wells yet to be brought on line
· Scope exists for FPSO nameplate capacity of 40,000 bopd to be increased by
approximately 10 per cent

· In Equatorial Guinea, the first infill well at the Ceiba field was
successfully put onstream at an initial rate in excess of 5,000 bopd, with one
further infill well at the Okume Complex now completed and due to start
production shortly
· Group working interest production in Q3 was 9,401 bopd:
· Equatorial Guinea: 3,268 bopd
· Gabon: 4,798 bopd
· Tunisia: 1,355 bopd

Crude oil liftings

· Crude oil volumes lifted and sold in Q3 were 397,652 barrels at an average
realised price after customary adjustments and fees of USD 80.21 per barrel,
resulting in proceeds of USD 31.9 million
· Tunisian lifting of 171,498  barrels previously expected to occur in late Q3
occurred in early Q4
· Full-year 2024 liftings expected to be ~3.5 million barrels (unchanged) with
~1.4 million barrels lifted / to be lifted in Q4 (~40 per cent of annual volume
lifted in Q4)

Finance

· Cash at bank at 30 September was approximately USD 19 million which includes
advances taken against future oil liftings of USD 10.4 million
· The amount owing under the Company's RBL facility at 30 September 2024 was
USD 70.5 million
· As previously communicated there has been upwards pressure on the Company's
full-year capital expenditure guidance of USD 75 million, now estimated at
approximately USD 95 million primarily due to the amended drilling programs in
both Equatorial Guinea and Gabon:
· Note that capital expenditure at producing assets is cost recoverable
under the terms of Panoro's production sharing contracts and tax provisions
· The rig extension and expanded drilling campaign offshore Gabon has
resulted in a total of eight new production wells (compared to six wells
originally planned) and a gross 2P reserve addition of 23.1 million barrels from
new discoveries made with E&A pilot wells also added into the drilling programme
· The rescheduled infill drilling campaign offshore Equatorial Guinea has
resulted in excess capital expenditure
· Lower than expected spend in Tunisia partially offsetting the above

· Preliminary expectations for group capital expenditure in 2025 are unchanged
at approximately USD 40 million

Shareholder returns

· Under the share buy-back programme announced on 23 May 2024 (of up to NOK
100 million) the Company, as at close of business on 8 November, had purchased a
total of 1,281,500 of its own shares at a weighted average price of NOK 31.8821
per share, corresponding to 1.10 per cent of Panoro's share capital
· Since the Company commenced cash distributions in Q4 2022 the cumulative
amount paid out to date is NOK 290 million, including NOK 99.4 million in
respect of Q1 and Q2 2024
· Panoro remains committed to delivering regular and sustainable shareholder
returns in line with its previously communicated 2024 shareholder returns policy

ILX wells

Equatorial Guinea - Akeng Deep ILX well, Block S (Panoro 12.0 per cent)

· The Noble Venturer drill ship has commenced drilling of the Kosmos Energy
operated Akeng Deep ILX well in Block S with results expected in December.
· Intended to test a play in the Albian, targeting an estimated gross mean
resource of ~180 million barrels of oil in close proximity to existing
infrastructure at Block G
· Other partners in Block S are GEPetrol and Trident Energy

Gabon - Bourdon ILX well, Dussafu Marin (Panoro: 17.5 per cent)

· To be drilled in early 2025
· Located in a water depth of 115 metres approximately 7 kilometres to the
southeast of the BW MaBoMo production facility and 14 kilometres west of the BW
Adolo FPSO. The Prospect has an estimated mid-case potential of 83 million
barrels in place and 29 million barrels recoverable in the Gamba and Dentale
formations

Portfolio expansion

Equatorial Guinea - PSC signed for Block EG-23 (Panoro: 80.0 per cent, operator)

· Located offshore north of Bioko Island and adjacent to the producing Alba
gas and condensate field. 19 wells have been drilled to date resulting in seven
hydrocarbon discoveries, some of which have been tested
· Based on existing data, the Ministry of Mines and Hydrocarbons estimates
Block EG-23 holds gross contingent resources of approximately 104 million
barrels of oil and condensate and 215 billion cubic feet of gas
· Initial period of three years to conduct subsurface studies based on
existing seismic. Following this, the partners will have the option to enter
into a further two-year period, during which they will undertake to drill an
exploration well.  Partnered with GEPetrol (20 per cent)

Gabon - PSCs signed for Niosi and Guduma blocks (Panoro: 25.0 per cent)

· Adjacent to the Company's producing Dussafu Marin Permit and the producing
Etame Marin Permit which is operated by VAALCO Energy
· The PSC covering the Niosi block has an initial exploration period of five
years with a work commitment of new 3D seismic data acquisition and one well.
The PSC covering the Guduma block has an initial exploration period of three
years with a work commitment of geological and geophysical studies. Both blocks
have an option to extend the exploration period and enter a second phase with an
additional well commitment
· Partners in the Niosi and Guduma blocks are BW Energy (37.5 per cent and
operator) and VAALCO Energy (37.5 per cent).

Enquiries

Qazi Qadeer, Chief Financial Officer
Tel: +44 203 405 1060
Email: investors@panoroenergy.com

About Panoro Energy

Panoro Energy ASA is an independent exploration and production company based in
London and listed on the main board of the Oslo Stock Exchange with the ticker
PEN. Panoro holds production, exploration and development assets in Africa,
namely interests in Block-G, Block S, Block EG-01 and Block EG-23 offshore
Equatorial Guinea, the Dussafu Marin, Niosi Marin and Guduma Marin blocks
offshore southern Gabon, the TPS operated assets, Sfax Offshore Exploration
Permit and Ras El Besh Concession, offshore Tunisia, and onshore Exploration
Right 376 in South Africa.

Visit us at www.panoroenergy.com.

Follow us on LinkedIn (https://www.linkedin.com/company/panoro-energy)

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