Panoro Energy ASA

Earnings Release • May 24, 2023

Panoro Energy - First Quarter 2023 Trading and Financial Update

Panoro Energy - First Quarter 2023 Trading and Financial Update

Oslo, 24 May 2023 - Panoro Energy ASA ("Panoro" or the "Company") is pleased to

announce strong financial performance with revenue of USD 60.7 million and

EBITDA of USD 35.6 million for the first three months. In line with its

commitment to deliver sustainable shareholder returns, Panoro has today declared

a quarterly cash dividend of NOK 0.2658 per share.

Following completion of the first new production well at the Hibiscus Ruche

development offshore Gabon in early April and acquisition of the 40 percent

minority interest in the Tunisian business, also in April, Panoro's current

working interest production is strong at rates of up to 8,500 bopd.

The Company expects working interest production to increase to around 13,000

bopd when all six new Hibiscus Ruche wells are onstream. Additionally, in

Equatorial Guinea the Block G partners have a rig contracted for the next

drilling campaign which is expected to commence in Q4 2023 and comprise three

infill production wells which are expected to be brought onstream in 2024 and

deliver additional new volume.

John Hamilton, CEO of Panoro, commented:

"Our existing platform of diversified and cash generative oil production

continues to underpin the business which is apparent in our strong financial

results for the first three months.  We are also making good progress towards

our organic production growth targets with our ongoing drilling programme set to

significantly increase Panoro's working interest oil production. Having paid

Panoro's inaugural quarterly cash dividend in March 2023, the Board has today

declared a quarterly cash dividend for payment in June 2023. We remain fully

committed to convert the strong fundamentals and cash generative potential of

Panoro's high-quality asset base into strong sustainable shareholder returns

whilst maintaining our growth strategy and disciplined capital management."

Corporate and Financial Update

· Working interest production for the first quarter averaged 6,320 bopd,

noting the previously communicated shut-down of the FPSO on Dussafu Marin for an

extended period to complete final tie-in work of the Hibiscus Ruche Phase I

development, and some short-term restricted production on other assets

· The Company recognises revenue when liftings of its crude oil entitlement

occur. Panoro lifted and sold 782,920 barrels in the period at an average

realised price of USD 76 per barrel after customary discounts and fees

· Revenue from oil sales for the first three months was USD 59.6 million with

total reported revenue for the period standing at USD 60.7 million. EBITDA for

the first three months was USD 35.6 million and net profit before tax of USD

24.5 million

· Quarterly cash dividend declared of NOK 0.2658 per share (representing a

cash payment to shareholders of NOK 31 million) to be paid on or around 12 June

2023

· At 31 March cash at bank stood at USD 41.5 million and gross debt USD 67.0

million after principal repayments of USD 12.9 million. Both the senior secured

loan (USD 6.8 million) and non-recourse loan (USD 0.6 million) were repaid in

full during the period. Panoro's resultant net debt position at 31 March 2023

was USD 25.5 million

· Cash flow from operations during Q1 was USD 35.2 million against capital

expenditures of USD 7.7 million

· Post period end on 24 April the Company completed its acquisition of Beender

Petroleum's minority share of Sfax Petroleum Corporation ("SPC") adding net 2P

reserves of approximately 3 million barrels of oil and net production of 800 -

900 bopd

· Full government ratification and approvals in Equatorial Guinea were

received for EG-01 and Block S respectively post period end in April

· Panoro's Annual Statement of Reserves was released post period end in April,

confirming a 92 percent organic 2P Reserve replacement year-on-year

2023 Guidance and Outlook

· Average full-year production guidance of 9,500 to 11,500 bopd is maintained

with the range being dependent on timing of the start-up of each of the new

production wells at Dussafu Marin

· Production is expected to increase to in excess of 13,000 bopd when all six

new Hibiscus Ruche Phase I wells are onstream

· Management expects the vast majority of its remaining 2023 crude oil

liftings to occur in the second half of the year

· Total crude liftings in 2023 are expected to be approximately 3 million

barrels, a materially greater volume than the 1.8 million barrels lifted in 2022

· Full-year capex guidance of USD 75 million is maintained

Operations Update

Equatorial Guinea - Block G (Panoro 14.25%)

· Company working interest production in the first three months averaged 3,871

bopd (27,164 bopd on a gross basis)

· Rig contracted for the next drilling campaign which is expected to commence

in Q4 2023 and comprise three infill production wells which are expected to be

put onstream in 2024 and deliver additional new production volumes

· Workovers including an electrical submersible pump ("ESP") conversion and

behind pipe perforations

· Ongoing field life extension and asset integrity projects including flowline

replacements

· Gas compression project at Okume

· Planning for future gas injection project to reduce routine flaring

Gabon - Dussafu Marin Permit (Panoro 17.5%)

· Company working interest production in the first three months averaged 1,284

bopd (7,340 bopd on a gross basis)

· Production from the DHIBM-3H well, the first of six Hibiscus Ruche Phase I

production wells in the current campaign, was initiated in early April and

stabilised at a gross rate of 6,000 bopd from the prolific Gamba reservoir, in

line with expectations

· Drilling of the second new production well is underway and expected onstream

in June

· Hibiscus Ruche Phase I is expected to deliver on a gross basis approximately

30,000 barrels oil per day of new production when all wells are completed and

onstream

· Commissioning of the new gas lift compressor onboard the FPSO BW Adolo is

now in process to support production from all six existing production wells at

the Tortue field

Tunisia - TPS Assets (Panoro 29.4% during Q1; 49% post acquisition of minority

interest in SPC)

· Company working interest production in the first three months averaged 1,164

bopd (3,960 bopd on a gross basis)

· Recompletion of the GUE-03 well, GUE-14 well and GUE-10AST well safely

completed without incident

· 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) scheduled to commence in Q3

· Detailed planning for development drilling campaign on the Rhemoura and

Guebiba fields with operations expected to start at year end

Exploration

· Panoro does not have any exploration wells planned during 2023

· At Block S offshore Equatorial Guinea the partners are planning to drill the

Kosmos Energy operated Akeng Deep exploration well in 2024 to test a play in the

Albian, targeting an estimated gross mean resource of approximately 180 million

barrels of oil equivalent in close proximity to existing infrastructure at Block

G

· In February Panoro was awarded a 56 percent operated interest in exploration

Block EG-01 offshore Equatorial Guinea. During the initial period of three years

Panoro and partners will conduct subsurface studies based on existing seismic

data to further define and evaluate the prospectivity of the block

· Further exploration wells at Dussafu in Gabon are also being considered,

using the optional well slots under current contract

· Completing study to evaluate the helium and natural gas prospectivity of

Technical Co-operation Permit 218 onshore northern Free State, South Africa

Live Presentation Webcast Dial in Details

The company will hold a live webinar presentation at 09:00 a.m. CEST today,

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 |24 May 2023, 09:00 .a.m. CEST |

|Time: | |

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

|Registration:|https://attendee.gotowebinar.com/register/5803459196658250336 |

| | |

| |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

interests in offshore exploration Block 2B 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)