Panoro Energy ASA

Earnings Release • Feb 25, 2021

Panoro Energy - 2020 Year end Trading statement and operational update

Panoro Energy - 2020 Year end Trading statement and operational update

Oslo, 25 February 2021 - Panoro Energy ASA ("Panoro" or the "Company" with OSE

Ticker: PEN) issues this update and guidance in advance of the Group's 2020

Annual Report. The information contained herein has not been audited and may be

subject to further review and amendment.

John Hamilton, Chief Executive Officer, Panoro Energy ASA, commented today:

"Panoro's recently announced acquisitions and funding will completely transform

the Company and its prospects. Panoro will become a growth company with a focus

on cash flow generation and dividend capacity from 2023. The global events of

2020 materially impacted the oil and gas industry, as evidenced by industry

financial statements. 2021 is already looking to be a much better year, as the

Company plans for a busy operational period of production and exploration

drilling against a much improved oil price environment."

Financial Highlights

· Gross revenue excluding hedging income from continuing operations[1] of USD

26.9 million for 2020 (2019: USD 46.8 million) derived from eight international

and six domestic oil liftings (2019: nine international, six domestic)

· 2020 EBITDA of USD 6 million compared to USD 24.6 million in 2019, due to

significantly lower oil prices and one fewer lifting

· Operating cost of USD 19.60 per barrel of oil produced for the year 2020

impacted by high levels of workover activity in Tunisia, Covid related costs and

increased Gabon operating costs in Q4

· Net loss after tax from continuing operations of USD 1.7 million for 2020

· Full year operating cash inflows of USD 0.3 million, offset by capital

investment outflows of USD 13.9 million and net financing outflows of USD 1.2

million with a cash balance of USD 5.7 million (excluding cash held for Bank

guarantee) at 31 December 2020 (31 December 2019: USD 20.5 million)

· Capital expenditure of USD 13.7 million for the year (2019: USD 9.5 million)

· Receivables from crude oil sales were USD 5.6 million at 31 December 2020

(31 December 2019: USD 8.9 million)

· Debt of USD 21.3 million including accrued interest (31 December 2019: USD

25 million). Principal repayment during the year was USD 4.3 million

Operational Highlights

· Annual group production net to Panoro of 0.81 MMbbls with average daily rate

of approximately 2,200 bopd.

· Average production of approximately 2,350 bopd for Q4 2020 due to improved

production in Tunisia

· Production and lifting operations maintained and largely unaffected through

the crisis

· Health and Safety systems and protocols proved resilient

Gabon

· Annual gross production of 5.2 MMbbls and average of 14,100 bopd (0.39

MMbbls and 1,060 bopd net to Panoro)

· Average daily production of approximately 13,500 bopd gross for the fourth

quarter (~1,000 bopd net)

· At Dussafu, interpretation of seismic reprocessing completed, drilling of

DHIBM-2 exploration well targeting Hibiscus Extension planned for Q2 2020

· Material cost and time savings through an alternative development plan for

the Hibiscus/Ruche area using jack-up rigs in place of a wellhead platform

· USD 100 million gross in capital savings as compared to previous concept

· Break-even for next development phases of approximately USD 25 per barrel

· Two crude oil liftings in the fourth quarter, sold at an average USD 46 per

barrel with core operating costs of around USD 20 per barrel

Tunisia

· Annual gross production of 1.4 MMbbls and average of 3,950 bopd (0.4 MMbbls

and 1,160 bopd net to Panoro)

· Quarterly production of approximately 4,500 bopd gross on average for Q4

2020

· 5,000 bopd gross target achieved during October with current production

ranging between 4,500 and 5,000 bopd

· Guebiba 10 side-track on production in lower Bireno interval with highly

productive Douleb showing potential to be produced in the future

· Multiple workover activities performed during Q3 were finished during Q4,

all completed safely and without incident

Corporate Highlights

· Announced acquisition from Tullow Oil plc of high-quality oil producing

assets for USD 140 million cash and USD 40 million contingent consideration (the

"Transactions"), consisting of a 14.25% working interest in Block G, offshore

Equatorial Guinea, and an additional 10% working interest in Dussafu Marin

Permit, offshore Gabon

· USD 70 million equity private placement materially oversubscribed and

completed in February 2021, subject to Extraordinary General Meeting approval in

March 2021

· Up to USD 90 million debt facility agreed with Trafigura group to partially

fund the Transactions; additionally, upsize option of USD 50 million and USD 20

million working capital facility

Outlook and Guidance

· Operational and financial transformation on completion of Transactions

· Following completion of Transactions, Panoro is fully funded for all

foreseeable capital expenditure and positioned to pay cash dividends from 2023

· Five liftings expected in Gabon, nine at TPS in Tunisia, and one to two in

Equatorial Guinea (subject to completion)

· 2021 net production guidance in excess of 9,000 bopd (subject to completion

of Transactions)

· In Gabon, DHIBM-2 Hibiscus exploration well and possible sidetracks in Q2

2021. Tortue development well DTM-7H to be drilled and production startup in

conjunction with DTM-6H in Q3 2021

· Equatorial Guinea Infill drilling program planned to start Q2 2021 (subject

to completion)

· In Tunisia, continued focus on workover program to maintain and boost

production

· Dividend of PetroNor shares to Panoro shareholders (upon completion of sale

of Aje)

· Completion of farm in to Block 2B, offshore South Africa (subject to closing

conditions)

[1] Discontinued Operations

Aje operations in Nigeria classified as discontinued operations following

divestment agreement, pending completion, and excluded from continuing

activities.

Webinar presentation on 25 February 2021 at 09:00 a.m. CET

The company will hold a live webinar presentation at 09:00 a.m. CET on Thursday

25 February 2021, 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 25 February 2021, 09:00 a.m. CET

Time:

Registration: https://attendee.gotowebinar.com/register/8255198585599888143

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).

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 the Dussafu License offshore southern Gabon, OML 113 offshore western

Nigeria (held-for-sale, subject to completion), and the TPS operated assets,

Sfax Offshore Exploration Permit and Ras El Besh Concession, offshore Tunisia.

Subject to completion of certain conditions, Panoro has also farmed-into an

exploration Block 2B, offshore South Africa and acquired an interest in Block G,

offshore Equatorial Guinea.

For more information visit the Company's website at www.panoroenergy.com.

Glossary and definitions

Bbl One barrel of oil, equal to 42 US gallons or 159 liters

Bopd       Barrels of oil per day

MMbbl   Million barrels of oil

EBITDA      Earnings before Interest, Taxes, Depreciation and Amortisation

EBIT Earnings before Interest and Taxes