Panoro Energy ASA

Investor Presentation • May 28, 2020

2020 Q1 Results Presentation

28 May 2020 www.panoroenergy.com

Disclaimer

This presentation does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA ("Company"). This presentation contains certain statements that are, or may be deemed to be, "forward -looking statements", which include all statements other than statements of historical fact. Forward -looking statements involve making certain assumptions based on the Company's experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. Although we believe that the expectations reflected in these forward -looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward -looking statements due to known or unknown risks, uncertainties and other factors. These risks and uncertainties include, among others, uncertainties in the exploration for and development and production of oil and gas, uncertainties inherent in estimating oil and gas reserves and projecting future rates of production, uncertainties as to the amount and timing of future capital expenditures, unpredictable changes in general economic conditions, volatility of oil and gas prices, competitive risks, counterparty risks including partner funding, regulatory changes and other risks and uncertainties discussed in the Company's periodic reports. Forward -looking statements are often identified by the words "believe", "budget", "potential", "expect", "anticipate", "intend", "plan" and other similar terms and phrases. We caution you not to place undue reliance on these forward -looking statements, which speak only as of the date of this presentation, and we undertake no obligation to update or revise any of this information.

Presenting Team on Webcast

EXECUTIVE MANAGEMENT TEAM

Corporate Highlights

OPERATIONS

• Staff are healthy and have adapted
• HSE culture and systems proven resilient
• Production largely unaffected, 2000+ bopd net for quarter, up from Q4
• Challenges include crew changes and liftings, with global storage a major theme

• Development activity deferred in Gabon

• All planned liftings have occurred largely as scheduled

• Q1 oil sales limited to one Gabon cargo and domestic sales in Tunisia
• International Tunisian lifting in early April
• Crude priced off Dated Brent

• Offtake and Marketing contracts with first class counter-parties

• Cash of \$24 million (inc deposit held for

• guarantee); debt \$23 million
• Hedging strategy proving very effective
• Capex reduced and cost cutting

FINANCE OUTLOOK

• Focus on financial discipline and maintaining existing production
• Production guidance for 2020 2,300 2,600 bopd (excl. Aje)
• Upside to asset base still intact, timing delays
• Resilient business model in a challenging environment

Gabon

Tunisia

Recent Events: Impact on the Oil Sector Generally

COVID-19 and Oil Price Shock

• Logistics both on and offshore compromised
• Increased HSE protocols
• Challenging crew changes amidst travel restrictions
• Development/drilling operations largely halted, with focus on maintaining day to day operations safely
• Severe reduction in global oil demand and storage capacity
• Significant downward pressure on oil prices
• Volatility in oil prices, including historically high Dated Brent (physical) discounts to futures (\$10-12/bbl) currently closer to \$2/bbl discount
• Stranded oil cargoes

Dated Brent (Physical) had been under huge pressure

Difference between physical price and futures price 2015-2020

Panoro Response to Current Environment

Proactive Initiatives to Mitigate the Dislocated Macro Environment

Panoro is managed in a financially prudent manner

Steps taken BEFORE current crisis proving effective

Steps taken DURING current crisis made to strengthen balance sheet

Emerge from crisis with resilient business model

Able to resume capital spending once oil macro improves

• Oil hedges taken out during 2019
• Hedged 675 bopd for both 2020 and 2021
• Mostly costless collars with a floor of \$55/bbl
• 10% placing in October raising \$16 million
• Funds raised to fund next phases of Dussafu development
• Alternative option was a loan facility but deemed too early to put instrument in place
• Streamlined corporate organization
• Cut costs of the historic DNO operations in Tunisia by 40%
• Maintain an optimized low cost corporate structure

PRIOR DURING

• In Gabon, capex for 2020 cut by 40%
• Ruche Phase 1 delay, due to oil price more than virus
• In Tunisia, deferred higher capex activities (Guebiba 10 and Salloum) until macro more clear
• Taking steps to reduce overheads
• Cost cutting across organization
• Taken advantage of strong USD to hedge out GBP and NOK costs

Corporate Strategy has made Panoro more resilient to cycle

Strategy has been to make a more robust company

# PRODUCING WELLS NEW DISCOVERIES

First Quarter Results 2020

Amounts in Million USD	Q1 2020	Q4 2019	Q1 2019
Revenue and other income1	3.4	13.7	16.7
EBITDA1	0.3	5.2	10.3
Net profit/(loss) after tax1	8.0	(3.5)	(1.4)
Net profit/(loss) after tax including discontinued operations	6.0	3.2	(1.5)
Underlying net profit/(loss) before tax1,2	(0.7)	3.2	7.9
Cash and bank balances3	24.2	30.4
Gross debt	23.0	25.4

1. Following agreement to sell Aje to PetroNor in 4Q 2019, the results and operations have been classified as discontinued operations and the asset has also been classified as held for sale. Numbers including comparatives in income statement have been re-classified to remove and disclose Aje operations separately in a single line of the income statement

2. Non-GAAP Financial Measures

The Group has enhanced its disclosures and introduced the reporting of Underlying Operating Profit/(Loss) before tax, a Non-GAAP Financial Measure. Underlying Operating Profit/(Loss) before tax is considered by the Group to be a useful additional measure to help understand underlying operational performance. The definition and details of this Non-GAAP measure can be referred to on page 7 of the first quarter, 2020 report.

1. Includes USD 10 million held for SOEP Guarantee as at 31 March 2020 and 31 December 2019

Loan Facilities

• Repayments of \$0.7m made during the quarter
• Amortises in 2020 at \$0.7m per quarter
• Effective interest rate dropped by 1% due to decrease in LIBOR

• Very supportive lender and strategic partner

• Non-recourse debt against Dussafu, as part of farm down to BW Energy

• Repayments of \$1.4m made during the quarter
• Repayments only made when excess cost oil after operating costs
• Panoro retains profit oil
• Very little repayment when oil prices are low

Gabon Update (Panoro 7.5% working interest)

Slide 13 First Quarter Results 2020

Tunisia Update (Panoro 29.4% working interest in production)

TPS Well Activities (and Proposed SMW-1)

Further Corporate Updates

SOUTH AFRICA FOR BLOCK 2B IN SOUTH AFRICA

• The application process to the Ministry is submitted
• Ministry has been closed due to pandemic
• Approval timetable not clear but expectation is during Q3/4
• Completion subject to this consent and the Azinamfarm in completion
• Operator evaluating rig and cost saving options in light of crisis
• Subsurface work continues

FOR OML 113 (Aje)

• Production has continued, with some limited shut in periods
• Cost savings being implemented by operator
• Conditional transaction with PetroNor subject to Ministerial consent
• Regulatory processes underway but expected to take several more months

Strong Outlook Despite Timing Delays

CORPORATE

• Solid balance sheet
• Low cost production
• Supportive shareholders and lender
• Dividend PetroNor Shares (Subject to Completion)
• Reserves/Resources remain highly valuable
• Consider taking advantage of market opportunities

PRODUCTION

• Dussafu Hook up DTM-6H
• Drill DTM-7H
• Ruche Phase 1
• Tunisia Bring on work over wells
• Additional activities underway, including well at Guebiba and other initiatives

EXPLORATION

• Salloum West 1

EXPLORATION

• Dussafu exploration
• Block 2B South Africa (2021)

Contact Details:

PANORO ENERGY

78 Brook Street London W1K 5EF United Kingdom

Tel: +44 (0) 203 405 1060 Fax: +44 (0) 203 004 1130 info@panoroenergy.com