Panoro Energy ASA

Earnings Release • May 25, 2022

Panoro Energy: First Quarter 2022 Trading and Financial Update

Panoro Energy: First Quarter 2022 Trading and Financial Update

Oslo, 25 May 2022 - Panoro Energy ASA ("Panoro" or the "Company" with OSE

Ticker: PEN) is pleased to report that working interest production for the first

three months averaged 8,300 bopd, a new quarterly record for the Company.

Operational and financial performance in the quarter were in line with guidance.

The Company is underpinned by a robust balance sheet with cash at end March 2022

of USD 29.4 million and a conservative leverage profile. With a period of

sizeable crude oil liftings set to commence in July and limited production

hedged the Company is well positioned to capitalise on the elevated oil price

environment.

John Hamilton, CEO of Panoro, commented:

"Our first quarter production performance is our best ever quarter and is within

our full year average guidance range of 8,000 to 9,000 barrels oil per day. Our

revenue, which is recognised as liftings occur, is also in line with our

expectations. July will see the commencement of a much more active lifting

schedule and as previously guided we anticipate the majority of Panoro's crude

liftings, and therefore revenue, will occur in the second half of the year. We

remain committed to initiating a sustainable and meaningful dividend for

shareholders at the earliest opportunity. With active and ambitious work

programmes underway at each of our producing assets and an exciting exploration

well planned in South Africa later in the year we are making good progress

towards unlocking the strong organic growth potential of our high quality and

well diversified asset base."

Financial Highlights

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

occur. In line with previously communicated guidance Panoro lifted and sold

128,500 barrels in the period at an average realised price of USD 108 per barrel

· Consequently, revenue from oil sales for the first three months was USD 13.9

million with total reported revenue for the period standing at USD 16.2 million.

EBITDA for the first three months was USD 16.0 million

· Management expects the majority of its crude oil liftings to occur in the

second half of the year, starting with July (approximately 850,000 barrels),

followed by September (approximately 700,000 barrels) and December

(approximately 750,000 barrels), all subject to possible changes due to

operational and commercial factors

· At 31 March cash at bank stood at USD 29.4 million and gross debt USD 89.1

million after scheduled principal repayments of USD 8.1 million were made in the

quarter, resulting in a net debt position of approximately USD 59.7 million

· Capital expenditures for 2022 (excluding acquisition costs) are expected to

be approximately USD 65 million, of which USD 10.9 million was spent in the

first three months and the majority of which is in relation to the Hibiscus /

Ruche Phase I development

· Management is implementing a hedging programme to coincide with the

Company's lifting schedule and maximise its exposure to the prevailing high oil

price environment. In addition to the limited historical hedges in place over

600 bopd in 2022 (costless collars with a USD 56/bbl floor and USD 65.5/bbl

ceiling) the Company has entered into swaps covering 200,000 barrels at a price

of USD 104.5/bbl around its July liftings

Operational Highlights

Equatorial Guinea - Block G (Panoro 14.25%)

· Company working interest production in the first three months averaged 4,968

bopd (34,866 bopd on a gross basis)

· Uptime of 99% was achieved at the Ceiba FPSO in Q1 2022 as a result of

facilities investments made by the JV in prior periods

· The operator of Block G, Trident Energy, is undertaking a workover programme

at the Okume Complex and has completed the Okume upgrade project which will

improve process reliability, power generation and fluid handling / injection

capabilities

· Replacement of the Ceiba export hose has been completed and various routine

maintenance and upgrade projects progressed during the quarter

· On 9 May, post period end, the Company announced that the Ministry of Mines

and Hydrocarbons of Equatorial Guinea and the Joint Venture partners at Block G

offshore Equatorial Guinea have agreed a material time extension of the

Production Sharing Contract ("PSC") until 31 December 2040 covering both the

producing Ceiba and Okume Complex Fields. Prior to the extension the PSC expiry

for the Ceiba Field was 2029 and for the Okume Complex field 2034. Management

expects that Panoro's net 2P reserves will increase by between 2 to 3 million

barrels as a result of the PSC extension

· The extension will support future phases of investment with a three-well

development drilling programme now expected to commence in H2 2023

Gabon - Dussafu Marin Permit (Panoro 17.5%)

· Company working interest production in the first three months averaged 2,030

bopd (11,600 bopd on a gross basis)

· Production in the period reflects a 12-day planned annual maintenance shut

-down which was pre-communicated by the operator BW Energy

· The Hibiscus/Ruche Phase 1 development project is progressing

Tunisia - TPS Assets (Panoro 29.4%)

· Company working interest production in the first three months averaged 1,304

bopd (4,435 bopd on a gross basis)

· The TPS team are undertaking an extensive workover campaign to replace two

ESPs in addition to further production enhancement opportunities

· New production opportunities include completion of the Douleb reservoir in

the GUE-10AST well and perforation and stimulation activities on three Cercina

wells

Exploration and Other Assets

· In South Africa the Block 2B joint venture has contracted a semi-submersible

rig to drill the Gazania-1 exploration well, which is expected to spud in

September 2022. The Island Innovator drilling rig is now expected to mobilise

from the North Sea in July. The Gazania prospect is seven kilometres up-dip from

the existing A-J1 oil discovery from 1988 that flowed light sweet crude oil to

surface. Panoro holds a 12.5% interest in Block 2B

· Panoro continues to make progress towards the sale of its interest in OML

113 and the Aje field to PetroNor E&P. The long stop date has been extended to

30 June to accommodate procedural steps to completion. Upon completion Panoro

will dividend shares in PetroNor E&P received as consideration to shareholders

Outlook and Guidance

· Full year 2022 average working interest production guidance is unchanged at

8,000 bopd to 9,000 bopd in 2022, of which approximately 60% is attributed to

Equatorial Guinea, 25% to Gabon and 15% to Tunisia

· Panoro remains on track to achieve approximately 10,000 bopd net working

interest production around year end following both the start-up of the

Hibiscus/Ruche Phase 1 development offshore Gabon and activities in Equatorial

Guinea, increasing to an expected rate in excess of 12,500 bopd during 2023

· Consistent with its strategy to create and deliver shareholder value, the

Panoro Board is committed to sustainable shareholder returns and initiating a

meaningful cash dividend at the earliest opportunity, which will be influenced

principally by the completion of major crude oil liftings for the Company

Live Presentation Webcast Dial in Details

The Company will hold a live presentation at 09:00 a.m. CEST today, during which

management will discuss the results and operations of the period. After

conclusion of the discussion, participants will be invited to ask questions on

the results update.

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

online access to the event will be equipped with features to ask live

questions. The audio Q&A feature will only be available for attendees who join

online. Joining instructions for participating online or through using local

dial-in numbers will be available upon completion of registration. The

presentation details are as follows:

Date and 25 May 2022, 09:00 a.m. CEST

Time:

Registration: https://attendee.gotowebinar.com/register/3573161424449914640

After registering, participants will receive a confirmation

email containing information about joining the results

presentation.  Participants can use their telephone or computer

microphone and speakers (VoIP).

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

A replay of the webinar presentation 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 a producing interest in Block-G, offshore Equatorial Guinea, the Dussafu

License offshore southern Gabon, OML 113 offshore western Nigeria (held-for

-sale, subject to completion), the TPS operated assets, Sfax Offshore

Exploration Permit and Ras El Besh Concession, offshore Tunisia and

participation interest in an exploration Block 2B, offshore South Africa.

Visit us at www.panoroenergy.com

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