Earnings Release • Aug 25, 2021
Earnings Release
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Oslo, 25 August 2021 - Panoro Energy ASA ("Panoro" or the "Company" with OSE Ticker: PEN) today announced that, on a pro-forma basis, revenues for the first half stood at USD 105.8 million and EBITDA USD 65.9 million. Working interest production on a pro-forma basis was approximately 7,700 bopd.
On an IFRS Reporting Basis, gross revenues were USD 34.9 million, EBITDA USD 28.2 million and working interest production approximately 4,500 bopd in the first half.
At 30 June 2021, cash at bank was USD 93.1 million (including USD 10 million cash held for bank guarantee) and gross debt USD 104.3 million, resulting in a net debt position of USD 11.2 million.
In Equatorial Guinea the first of three planned infill wells at the Okume Complex was completed, encountering good quality oil saturated reservoir sands. Drilling of the second well is underway and all three wells are expected onstream in the fourth quarter.
In Gabon, completion and tie-in of the DTM-6H and DTM-7H production wells is underway with production start-up expected in the fourth quarter. The DHBNM-1 Hibiscus North exploration well has made an oil discovery in the Upper Gamba sandstone.
In Tunisia current gross production is above the 5,000 bopd level with a number of well operations planned at El Ain and Cercina.
In South Africa the operator of Block 2B plans to spud the Gazania-1 exploration well before year end.
Panoro continues to make progress towards the sale of its interest in OML 113 and the Aje field to PetroNor E&P. Due to Covid related delays the long stop date was extended to allow additional time for the statutory approvals process to complete. Upon completion Panoro will dividend shares in PetroNor E&P received as consideration to shareholders.
Panoro expects working interest production to climb to a level of approximately 9,500 bopd by year end as the five new production wells in Equatorial Guinea and Gabon start to contribute. Full year average working interest production on a pro-forma basis is expected to be 7,900 to 8,400 bopd. Capital expenditures for 2021 (excluding acquisition costs) are expected to be USD 45 million, of which USD 6.9 million was spent in the first half.
"The first half of 2021 will be seen as an inflection point for Panoro as the step-change in production and financial contribution derived from our recent acquisitions, together with the higher year-on-year oil prices, translates into results. We are on a solid financial footing and are fully funded through an organic growth programme that offers line of sight on achieving net production of around 9,500 bopd by year end, as five new production wells come onstream in Equatorial Guinea and Gabon, and an 18 to 24 month trajectory leading to net production in excess of 12,000 bopd and the payment of cash dividends for shareholders."
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 Time: | 25 August 2021, 09:00 .a.m. CEST | |
|---|---|---|
| Registration: | https://attendee.gotowebinar.com/register/18666347102392 87054 |
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| After registering, participants will receive a confirmation email containing information about joining the results presentation. |
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| 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.
Qazi Qadeer, Chief Financial Officer Tel: +44 203 405 1060 Email: [email protected]
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
| Metric | IFRS Reporting Basis | Pro forma basis |
|---|---|---|
| Net Production (approximate) |
4,500 bopd |
7,700 bopd |
| Gross revenue | USD 34.9 million | USD 105.8 million |
| Number of liftings | 5 International 4 Domestic |
6 International 4 Domestic |
| EBITDA | USD 28.2 million (Includes overlift reversal to income of USD 25 million) |
USD 65.9 million |
| EBIT | USD 66.6 million (Gain on acquisition of additional 10% working interest in Dussafu Permit contributed to USD 48.5 million of income recognised under IFRS 3) |
USD 100 million (after DD&A on a historical basis. Following completion of acquisitions, DD&A will be higher due to depletion of sizeable fair value uplift adjustments made on the purchase price allocation of business combinations) |
| Cash balance (including USD 10 million held for bank guarantee) |
USD 93.1 million | - |
| Receivables from crude oil sales |
USD 21.9 million (Almost USD 19.4 million realised in 3Q) |
- |
| Gross Debt | USD 104.3 million | - |
In February 2021, Panoro announced two transformational acquisitions of assets in West Africa. On 31 March 2021, the acquisition of Tullow Equatorial Guinea Limited ("TEGL") (the "EG Transaction") was completed and has been recognised in the balance sheet of the Group in accordance with IFRS 3. The results of TEGL up to 31 March 2021 have not been consolidated and have only been included from the date of completion.
In June 2021, the transaction to acquire an additional 10% working interest in Dussafu permit (the "Dussafu Transaction") was completed. No results up to the completion date of 9 June 2021 have been included in the consolidated income statement of the Company's Half Year results ending 30 June 2021. The fair value of the acquired assets and liabilities in connection with the Dussafu Transaction have been included as of the acquisition date in Panoro's statement of financial position. Under the requirements of IFRS 3 "Business Combinations" any excess of fair value of net assets acquired over the consideration paid is recognised in the income statement as gain on acquisition of business, which was USD 48.5 million for this transaction. Such gain has arisen due to significant increase in oil prices between effective date and completion date of the Dussafu Transaction.
In order to provide insights into the performance of the Group's existing operations combined with the Company's aforementioned acquisitions in West Africa, certain unaudited key
information has been prepared and included in the highlights on a pro-forma basis after including the results and operations of both transactions from 1 January 2021 and up to the respective completion dates.
The pro-forma information above is prepared for indicative purposes only and should not be construed as past performance of the Group or be seen as a forward-looking guidance. The purpose of this information is solely to provide illustration and highlight the key metrics of the business on an indicative basis after considering potential acquisitions.
• Average first half production In Tunisia of 4,535 bopd gross on average during the quarter (1,333 bopd net)
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