Panoro Energy ASA

Earnings Release • May 23, 2024

Panoro Energy - First Quarter 2024 Trading and Financial Update

Panoro Energy - First Quarter 2024 Trading and Financial Update

Oslo, 23 May 2024 - Panoro Energy ASA ("Panoro" or the "Company")  is pleased to

announce strong first quarter operational and financial performance. Panoro

group working interest production was in line with expectations at 9,605 bopd.

Reported revenue was USD 68.9 million, EBITDA USD 38.7 million and net profit

USD 12.1 million.

Consistent with its commitment to delivering sustainable shareholder returns,

Panoro has today declared a Q1 2024 cash distribution of NOK 50 million and has

initiated a share buy-back program that allows the Company to repurchase up to

NOK 100 million of its issued shares.

Drilling results in Gabon have continued to yield positive results, most

recently with oil being successfully discovered at a north-east extension of the

Hibiscus South field and northern flank of the Hibiscus main field. In

Equatorial Guinea, following the contract award in April for the Noble Venturer

drill ship, infill drilling is set to recommence in June.

John Hamilton, CEO of Panoro, commented:

"Our strong Q1 results are in line with previously communicated guidance and

illustrate the good progress we are making towards our organic growth targets.

With further development wells to come in Gabon, infill drilling offshore

Equatorial Guinea set to recommence in June and two high impact E&A wells

planned on the Bourdon and Akeng Deep prospects, in Gabon and Equatorial Guinea

respectively, we have a very exciting organic growth pipeline.

We are pleased to announce that the Board has today, alongside the core cash

distribution for the quarter, also approved the immediate launch of a material

share buy-back program as we believe there is a significant gap between the

intrinsic value of our core assets and our share price. This is in line with our

2024 shareholder returns policy and further demonstrates Panoro's commitment to

converting the strong fundamentals of our high-quality and diversified asset

base into sustainable shareholder returns, whilst maintaining our growth

strategy and disciplined capital management."

Corporate and Financial Update

Production Performance and Reserves

· Group working interest production in Q1 averaged 9,605 bopd and is in line

with previously communicated guidance for the quarter

· Equatorial Guinea: 3,481 bopd

· Gabon: 4,347 bopd

· Tunisia: 1,777 bopd

· Average full-year group production guidance is maintained at 11,000 bopd to

13,000 bopd

· Q2 2024 group production is expected to be approximately 9,000 bopd and

includes the effect of a planned three week shut down of production offshore

Gabon in May to undertake routine annual maintenance work

· Prior to the planned maintenance work group production in Q2 to date was

10,000 bopd

· Annual Statement of Reserves published in April confirmed Panoro achieved an

overall 2P reserve replacement ratio of 70 per cent in 2023 with working

interest 2P reserves and 2C resources at 31 December 2023 independently assessed

to be 34.67 million barrels and 28.5 million barrels respectively (63.17 million

barrels 2P+2C)

Financial Performance

· Reported Q1 revenue was USD 68.9 million (Q4 2023: USD 55.2 million) of

which USD 64.9 million was generated from the sale of 799,399 barrels at an

average realised price of USD 81.15 per barrel

· Q1 EBITDA was USD 38.7 million (Q4 2023: USD 31.4 million) with profit

before tax of USD 21.0 million (Q4 2023: USD 13.2 million) and net profit for

the period of USD 12.1 million (Q4 2023: USD 4.5 million)

· Cash inflow from operations was USD 24.9 million (Q4 2023: USD 3.5 million

net outflow) against capital expenditure of USD 27.3 million (Q4 2023: USD 20.0

million)

· Cash at bank at 31 March 2024 was USD 22.4 million which includes advances

taken against future oil liftings of USD 17.9 million

· During Q1 the Company successfully concluded a redetermination of its

Reserve Based Loan ("RBL") facility, resulting in an increase to borrowing

headroom and extension of facility duration. As a result, the Company made a USD

10 million drawdown during the period and re-sculpted the RBL maturity profile.

Commercial terms of the RBL facility are unchanged while the final maturity date

has been extended by 24 months to end Q1 2028.  The amount owing under the RBL

facility at 31 March 2024 was USD 80.6 million

· Post period end in April, the operator of the Dussafu Marin Permit offshore

Gabon executed a Sale and Lease Back ("SLB") agreement with Minsheng Financial

Leasing Co ("MSFL") for the BW MaBoMo production facility. Panoro has received

net sales proceeds of approximately USD 26 million (not reflected in cash

balance at 31 March 2024)

· USD 10 million of the SLB proceeds to be used to reduce amounts owed under

the higher cost RBL facility, resulting in a more efficient capital structure,

with the remainder available to enhance development of the business and delivery

of shareholder returns. The Company will retain significant headroom in its RBL

facility, offering flexibility going forward

Q1 2024 Cash Distribution and Share Buy-back Program

· Panoro today declares a Q1 2024 cash distribution of NOK 50 million

· Cash distribution to be paid as a return of paid in capital

· The Board of Directors of Panoro has also authorised a share buy-back

program ("SBP") that allows the Company to repurchase up to NOK 100 million of

its outstanding common shares. Please refer to separate announcement for details

of the SBP

· In accordance with the previously communicated 2024 shareholder returns

policy the Company is targeting a distribution to shareholders of between NOK

400 million to NOK 500 million through the 2024 cycle comprising:

· A core cash distribution paid on a quarterly basis

· A combination of share buybacks and special cash distribution at the

discretion of the Board

· Amounts to be weighted towards the second half of the year as production

milestones are achieved

· The Board will consider upward or downward revisions of the framework as

production de-risking occurs and should oil prices be higher/lower than USD 85

per barrel

Operations Update

Equatorial Guinea - Block G (Panoro 14.25 per cent)

· Contract awarded in April by the operator Trident Energy on behalf of the

joint venture for the Noble Venturer drill ship to recommence infill drilling at

the Ceiba Field and Okume Complex.  The Noble Venturer has most recently been

engaged in a long-term and successful drilling campaign offshore Ghana which is

expected to conclude in late May, after which it will relocate to Equatorial

Guinea to recommence drilling operations in June

· Owing to limitations arising from the shallower water depth at one of the

planned infill well locations, the drilling campaign will now comprise of two

infill wells. The third infill well will be deferred as part of a potential

future drilling campaign

Gabon - Dussafu Marin Permit (Panoro 17.5 per cent)

· In March the DHBSM-1H production well at the Hibiscus South field on the

Dussafu Marin Permit offshore Gabon was put onstream at an initial stabilised

gross rate of 5,000 bopd to 6,000 bopd, in line with expectations

· Drilling of the production well DRM-3H on the Ruche field was completed in

April.  The well encountered good quality oil saturated reservoir sands in the

regionally prolific Gamba formation and will be put onstream with a new

conventional Electrical Submersible Pump ("ESP")

· Two successful pilot wells were drilled post period end in May, extending

the Hibiscus South and Hibiscus fields and increasing recoverable reserves:

· The DHBSM-2P pilot well, drilled to test a possible north-eastern

extension of the Hibiscus South field, encountered approximately 25 metres of

net oil pay in the Gamba formation.  Preliminary volume estimates comprise gross

recoverable reserves of five to six million barrels of oil and approximately 14

million barrels of oil in place

· The DHIBM-7P pilot well, drilled to appraise the northern flank of the

Hibiscus field, encountered approximately 24 metres of net oil pay in an overall

column of 37 metres extending across the Gamba formation and underlying Dentale

formation

· The next rig operation will be to drill a production well (DHBSM-2H) at the

recently proved north-east extension of the Hibiscus South field. The plan is

then for the rig to undertake well workovers and drill a production well at the

Hibiscus field into the newly proved northern flank (the order of which will be

dependent on optimising production and logistical considerations). The current

campaign is therefore now expected to result in a total of eight new production

wells across the Hibiscus / Hibiscus South / Ruche fields

· The Bourdon prospect test well (DBM-1) will be the last operation in the

current campaign, providing the aforementioned activities are performed within

time expectations

· Gross production in Q2 prior to the planned maintenance work averaged

approximately 29,800 bopd and is expected to reach 40,000 bopd once all wells in

the current campaign are completed

Tunisia - TPS Assets (Panoro 49.0 per cent)

· New production opportunities include a workover campaign comprising ESP

replacement and stimulation of three wells at the Cercina field (CER-1, CER-6A

and CER-7)

· Detailed planning for development drilling campaign on the Rhemoura and

Guebiba fields

Exploration and Appraisal Activities

Equatorial Guinea - Block S (Panoro 12.0 per cent) and Block EG-01 (Panoro 56.0

per cent, op.)

· The Noble Venturer drill ship has also been contracted to drill the Kosmos

Energy operated Akeng Deep infrastructure led exploration ("ILX") well in Block

S once the two Block G infill wells have been drilled and completed.  The Akeng

Deep ILX well is 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

· A successful outcome at Akeng Deep can have a positive read across to the

adjacent Panoro operated Block EG-01 where Panoro is conducting subsurface

studies based on existing 3D seismic data

· The seismic data re-processing project for EG-01 has commenced incorporating

leading edge pre-stack depth migration (PSDM) techniques

Equatorial Guinea - Heads of Terms Agreed for Block EG-23

· On 4 April Panoro announced that it has reached an agreement with the

Government of Equatorial Guinea on the key terms and conditions for the award of

offshore Block EG-23

· The Heads of Terms agreement signed by Panoro, GEPetrol (the national oil

company), and the Ministry of Mines and Hydrocarbons paves the way for a period

of exclusive negotiations to finalise a Production Sharing Contract ("PSC") for

Block EG-23 and development of a work programme and budget.  Panoro envisages

its participating interest in Block EG-23 upon award of a PSC to initially be up

to 80 percent

· Block EG-23 is located offshore Equatorial Guinea north of Bioko Island and

adjacent to the producing Alba gas and condensate field. 19 wells have been

drilled on Block EG-23 to date resulting in seven hydrocarbon discoveries (four

oil, two gas and one gas/condensate), some of which have been tested

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

· The Bourdon Prospect is 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. The partner's intention is to drill the well

during the current Gabon drilling campaign, providing that planned production

activities on the block are concluded within time expectations

South Africa - Technical Cooperation Permit 218 (Panoro: 100 per cent)

· Application for an Exploration Right covering part of TCP 218 located

onshore in Free State, South Africa, is currently in progress

Webinar Presentation

The company will hold a live webinar presentation at 09:00 a.m. CEST on Thursday

23 May 2024, during which management will discuss the results and operations,

followed by a Q&A session.

The webinar presentation can be accessed through registering at the link below

and the online event will be equipped with features to ask live questions.

Joining instructions for participating online or through using local dial-in

numbers will be available upon completion of registration. The webinar details

are as follows:

+-------------+---------------------------------------------------------------+

|Date and |23 May 2024, 09:00 .a.m. CEST |

|Time: | |

+-------------+---------------------------------------------------------------+

|Registration:|https://attendee.gotowebinar.com/register/6598085054329479262 |

| | |

| |After registering, participants will receive a confirmation |

| |email containing information about joining the webinar. |

| | |

| |Participants can use their telephone or computer microphone and|

| |speakers (VoIP). |

+-------------+---------------------------------------------------------------+

Please join the event at least ten minutes before the scheduled start time.

A replay of the webinar will be available shortly after the event is finished

and will remain on our website (www.panoroenergy.com) for approximately 7 days.

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 and Block EG-01 offshore Equatorial Guinea,

the Dussafu Marin License offshore southern Gabon, the TPS operated assets, Sfax

Offshore Exploration Permit and Ras El Besh Concession, offshore Tunisia, and

onshore Technical Co-operation Permit 218 in South Africa.

Visit us at www.panoroenergy.com.

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