Panoro Energy ASA

Earnings Release • Feb 3, 2022

Panoro Energy - Trading Statement and Operations Update

Panoro Energy - Trading Statement and Operations Update

Oslo, 3 February 2022 - Panoro Energy ASA ("Panoro" or the "Company") today

provides an update in advance of its full year 2021 results which are scheduled

for release on 23 February 2022. Information contained within this release is

unaudited and may be subject to further review and amendment.

In 2021 Panoro's working interest production more than tripled year-on-year to

approximately 7,600 bopd (proforma basis) while revenue increased almost five

-fold to approximately USD 118 million as higher oil prices combined with the

production uplift.  The Company has line of sight on organic production growth

to in excess of 12,500 bopd during 2023 through the active production and

development work programmes underway and planned across the portfolio. Panoro is

committed to sustainable returns for shareholders through the oil cycle.

John Hamilton, CEO of Panoro, commented:

"2021 saw Panoro establish itself as a leading independent producer in Africa.

The acquisition of Tullow's interests in Block G offshore Equatorial Guinea and

Dussafu Permit offshore Gabon has been a major milestone and transformed our

operational and financial profile, positioning the Company to generate

sustainable long-term value for our shareholders. Panoro today benefits from a

strongly cash generative, diversified low-cost and long-life oil production base

managed by a lean organisational structure. We have a busy year ahead working

with our partners and key stakeholders to further unlock the considerable

organic upside across our portfolio. Our growing cash flow will allow us to

start returning cash to shareholders, and at the same time positions us to

opportunistically capitalise on value accretive new business opportunities

should they arise."

2021 Performance Update

· Full-year working interest production on a proforma basis averaged

approximately 7,600 bopd and reached levels well in excess of 8,500 bopd in

December, in line with guidance

· 2021 full-year reported revenue is expected to be approximately USD 118

million, generated from crude sales of approximately 1.6 million barrels in the

year and average realised oil price of USD 72 per barrel

· Cash at bank at 31 December 2021 was USD 24.5 million and gross debt USD 100

million. Year-end receivables from December liftings stood at USD 39.9 million

which will be received in full within the month of February (USD 30.8 million

received to date)

2022 Guidance and Outlook

· Working interest production is forecast to average 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

· Towards the end of the year, Panoro expects to achieve approximately 10,000

bopd net following both the start-up of the Hibiscus/Ruche Phase 1 development

offshore Gabon and increasing activity in Equatorial Guinea

· Panoro remains on track to achieve in excess of 12,500 bopd net during 2023

· Expenditure on capital and other non-recurring projects in 2022 is expected

to be approximately USD 65 million, and includes approximately USD 6 million

carried forward from 2021 guidance in relation to ongoing development of the

Dussafu Marin Permit offshore Gabon (timing of spend) and USD 6 million in

relation to exploration drilling at Block 2B offshore South Africa (pre

-communicated deferral of well to H2 2022). The majority of planned 2022

expenditure is associated with the guided Hibiscus/Ruche field development and

drilling offshore Gabon

· Planned 2022 expenditure across the portfolio comprises:

· Equatorial Guinea:

· New production optimization and growth initiatives approved by the JV

· Well workovers including ESP conversions and acid stimulations

· Multiple integrity and maintenance projects

· A new gas compression project at Okume

· Long Lead Items for future drilling and completion projects

·

· Gabon:

· Construction and installation of Hibiscus Alpha Platform

· Installation of Hibiscus-Tortue pipeline

· Adolo FPSO modifications including additional gas lift capacity

· Drilling first production wells and start-up of Hibiscus field in Q4

·

· Tunisia:

· Multiple integrity and maintenance activity with a focus on the Cercina

field

· Subsurface remodelling work on the Guebiba field for a potential

drilling campaign in 2023

· Plans of Development in support of concession renewals at Rhemoura

(2023) and Cercina (2024)

· Cercina well scale treatment and stimulation campaign

·

· South Africa:

· Drilling of Gazania-1 exploration well

· Scheduled debt principal repayments in 2022 are approximately USD 26 million

· Panoro is finalising its 2022 lifting schedule with partners and will

provide further update at its 2021 full year results on 23 February. It is

currently anticipated that Panoro's 2022 crude oil entitlement liftings will be

weighted towards the second half of the year

· On 27 January 2022 the Company announced receipt of government approvals for

the sale of its 12.1913% economic interest in OML 113 offshore Nigeria, which

includes the Aje field, to PetroNor E&P Limited ("PetroNor"). Receipt of

government approvals satisfies the last key condition precedent for the

completion of the transaction.  Panoro and PetroNor will now proceed with the

final steps to achieve completion of the Transaction, including the issuance of

new PetroNor shares for distribution to Panoro shareholders

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

Panoro Board is committed to sustainable shareholder returns, balanced alongside

future organic and inorganic growth. The commitment to initiate sustainable cash

dividends, perhaps significantly earlier than mid-2023 guidance issued at the

time of the Tullow acquisitions, clearly demonstrates the Boards strong

alignment with shareholders and prioritisation of shareholder returns through

the oil cycle

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)