Panoro Energy ASA

Earnings Release • Jan 30, 2023

Panoro Energy - Trading Statement and Operations Update

Panoro Energy - Trading Statement and Operations Update

Oslo, 30 January 2023 - Panoro Energy ASA ("Panoro" or the "Company") today

provides an update in advance of its full year 2022 results which are scheduled

for release on 22 February 2023. Information contained within this release is

unaudited and may be subject to further review and amendment.

2022 was a record year for Panoro with revenues estimated at approximately USD

188 million. Working interest production averaged approximately 7,500 bopd.

Underpinned by a strong balance sheet and conservative leverage profile the

Company is well positioned for its organic production growth.

Production drilling commenced in early January at the Hibiscus Ruche Phase I

development offshore Gabon on the Dussafu Marin Permit. Panoro expects its group

production to increase to around 12,500 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:

"Panoro is entering a phase of continual drilling activity which will see at

least 10 wells being drilled in Gabon and Equatorial Guinea over the next 12 to

15 months and deliver a step-change in working interest production. Our priority

is to translate the strong fundamentals and cash generative potential of

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

maintaining our growth strategy and disciplined capital management. Accordingly,

we expect to commence dividend payments in 2023 with Panoro's inaugural cash

dividend to be declared at full year results on 22 February and paid as per our

previously communicated shareholder returns policy."

2022 Performance Update

· Full year working interest production averaged approximately 7,500 bopd

(approximate split Equatorial Guinea 59 percent, Gabon 25 percent, Tunisia 16

percent). Working interest production in Q4 2022 averaged approximately 7,000

bopd and reflects facilities maintenance and preparations for tie-in activities

undertaken during the period

· 2022 full year reported revenue is expected to be approximately USD 188

million

· Crude oil liftings in 2022 totalled 1.8 million barrels sold at an average

realised price of approximately USD 99 per barrel after customary price

adjustments and associated fees

· Cash at bank at 31 December was approximately USD 32.6 million

· Gross debt at 31 December was USD 79.5 million after principal repayments of

USD 18.8 million were made in the year

· Resultant net debt position at 31 December was USD 46.9 million

· 2022 capital expenditure (subject to final reconciliation) was approximately

USD 65 million (including non-recurring project costs)

2023 Guidance and Outlook

· Full year working interest production expected to average 9,000 bopd to

11,000 bopd in 2023, with the range being dependent on timing of the start-up of

each of the new production wells at Dussafu Marin

· Q1 working interest production is expected to be 7,000 bopd to 7,500 bopd

taking into account a planned shutdown during February at Dussafu Marin for

final hook up and commissioning work.  Thereafter production is expected to

increase progressively as the six new production wells at the Hibiscus Ruche

Phase I development are drilled and brought onstream. Current group working

interest production is approximately 7,300 bopd

· Expenditure on capital and other non-recurring projects in 2023 is expected

to be approximately USD 75 million and includes approximately USD 5 million

associated with long lead items and planning for 2024 drilling activities. The

majority of planned 2023 expenditure is associated with the production drilling

campaign at the Hibiscus Ruche Phase I development offshore Gabon and infill

drilling campaign at Block G offshore Equatorial Guinea

· Minimum debt principal repayments in 2023 are approximately USD 20 million

· Panoro expects its crude liftings in Q1 to be approximately 700,000 barrels

in Equatorial Guinea and Tunisia

· The anticipated lifting schedule for the remainder of 2023 is being

finalised with partners and the Company will provide an update at its 2022 full

year results on 22 February. Panoro expects crude liftings in 2023 will be

materially greater than the volumes lifted in 2022

· In accordance with its previously communicated 2023 shareholder returns

policy the Company expects to declare its inaugural cash dividend at full year

results on 22 February

· Planned activities across the portfolio in 2023 are:

· Equatorial Guinea

· Rig contracted for a three well infill drilling campaign which is

expected to commence in Q4 2023

· 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

· Drilling at the first of six planned Hibiscus Ruche Phase I production

wells commenced in early January, with first oil expected during March in line

with previously communicated guidance

· Installation of flexible pipelines and risers between the BW MaBoMo

production facility and the FPSO BW Adolo has been completed with final hook up

and commissioning work ongoing

· New gas lift compressor unit to support production from the six existing

wells on the producing Tortue field is being installed onboard the FPSO BW Adolo

with commissioning and start up of the compressor expected around the time of

first oil from Hibiscus Ruche Phase I

· Tunisia

· Recompletion of the GUE-10AST well on the high potential Douleb

reservoir

· Cercina workover campaign comprising ESP replacement and stimulation of

three wells: CER-1; CER-6A; and CER-7

· Detailed planning for development drilling campaign on the Rhemoura and

Guebiba fields with operations expected to start at year end

· Panoro jointly with its partner ETAP received initial approval from the

Tunisian Hydrocarbons Advisory Committee for the extension of Rhemoura

Concession for an additional period of 16 years. The official gazetting process

is ongoing

· Exploration

· Panoro does not have any exploration wells planned during 2023

· Having reached agreement to farm into a 12 percent interest in Block S

offshore Equatorial Guinea (subject to customary approvals) 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

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

using the optional well slots under current contract

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

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

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, offshore Equatorial Guinea, the Dussafu License

offshore southern Gabon, the TPS operated assets, Sfax Offshore Exploration

Permit and Ras El Besh Concession, offshore Tunisia, and interests in an

exploration Block 2B, and 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)