Panoro Energy ASA

Business and Financial Review • May 4, 2020

Panoro Energy Provides Operations and Corporate Update

Panoro Energy Provides Operations and Corporate Update

Oslo, 4 May 2020 - Panoro Energy ("Panoro" or the "Company" with OSE Ticker:

PEN) is pleased to provide a corporate update in conjunction with the

publication of its 2019 annual report released on 30 April 2020.

Operations

While many logistical challenges associated with COVID-19 continue, Panoro's

production operations to date have been largely unaffected. The health and

safety culture at our operations has shown to be resilient, with conduct of safe

operations, together with the well-being of our team, being our top priority.

Production in both Gabon and Tunisia continues to be in line with expectations

given the necessary deferral in some near-term development activity.

Panoro anticipates that the well-publicized global oil demand reduction and

storage shortage may continue to provide both downward oil pricing pressure and

logistical challenges for the upcoming months. The Company is proactively

working with partners, host governments, suppliers and customers to mitigate the

risks associated with this unprecedented global situation.

Oil sales

Gabon

In Gabon, a lifting was completed in March for the account of the Panoro, BWE

and Tullow, followed by a lifting in April on behalf of the State of Gabon.

The March lifting was for approximately 44,000 barrels net sold volumes to

Panoro at a realized price of USD 33 per barrel.

In Q2, the Company expects to see a further lifting in June with approximately

53,000 barrels net sold volumes to Panoro.

Tunisia

In Q1, domestic sales in Tunisia of 27,000 barrels were achieved at an average

realized price of USD 54 per barrel.

An international lifting was made in April for 90,000 barrels and achieved a

realized price of approximately USD 19 per barrel, reflecting the severe

dislocation in pricing affecting the industry (Dated Brent averaged

approximately USD 18 per barrel in April). Revenue from this lifting will be

recognized in Q2 along with some further domestic sales in Tunisia.

Outlook

Production in Gabon for 2020 is now expected to average 15,000-16,500 bopd

(gross), with the 10% reduction in range due to the uncertain timing of hooking

up the successfully completed DTM-6 well. The well was expected to be connected

in June but, given the COVID-19 restrictions, the timing of this activity is

estimated to occur later this year. Current production is approximately 17,500

bopd (gross), with operating costs decreased from 2019 levels to USD16-18 per

barrel.

Production in Tunisia is steady at approximately 4,000 bopd (gross), and the

Company is on track to bring on the anticipated additional production as soon as

the COVID-19 operational restrictions lessen. Operating costs remain under $15

per barrel.

Panoro's 2020 liftings are heavily weighted to H2 2020. Based on current

assumptions, we expect the first Q3 liftings to be in August, one in Tunisia and

one in Gabon. Overall, the 2020 annual lifting guidance is for 9-10

international liftings (supplemented by smaller domestic sales in Tunisia), with

60% of sales in the second half of the year. Given the unprecedented

uncertainties being experienced, the lifting guidance will be updated during the

course of the year and actual lifting volumes and months may vary from those

indicated.

Panoro's oil offtake and marketing contracts are with first class

counterparties. In Gabon, Panoro benefits from an offtake contract for 2020 with

BP International, while in Tunisia, Mercuria, one of the world's largest

independent trading companies, manages the marketing of Tunisian crude oil.

Mercuria is also providing risk management solutions to Panoro, as the

counterparty of the Company's crude oil hedges.

Hedging

Panoro has hedged 20,286 barrels per month (equivalent to approximately 667

barrels per day) for the entire calendar years of 2020 and 2021. These are

predominantly costless collars with a floor of USD 55 per barrel and a cap of

around USD 61 per barrel. The hedges are settled on a monthly basis on the

average of Dated Brent during the calendar month.

As additional Brent price protection, Panoro has additional hedges in place of

24,000 barrels for each of March and July 2020 to coincide with planned

liftings. These were done as costless collars and swaps with a floor at

approximately USD 62 per barrel.

For the first quarter, hedge income of approximately USD 1.2 million was

recognized, resulting in an average realized price per barrel sold (including

hedging) of USD 57 per barrel (note: hedging income is recognized in the P&L

after EBIT and not reported as part of revenue and EBITDA).

As at March 31, the mark-to market value of the Company's remaining hedge

positions is USD 9 million net to Panoro.

Financials

As at 31 March, Panoro held USD 24 million in cash (including the USD 10 million

held against the bank guarantee for Sfax Offshore). Debt as at end March was USD

23 million, with USD 2.1 million having been repaid in Q1.

Remaining capital expenditure to be spent this year in Gabon is approximately

USD 5 million. As announced, in Tunisia any material capital expenditure is

paused pending return to a normal environment for conducting drilling

operations. Material cost cutting initiatives at the operating and corporate

level have been achieved with further reduction underway.

Panoro's break even costs (operating costs plus all taxes) at the asset level

are on average below USD 25 per barrel, and with modest corporate costs, Panoro

is well positioned to withstand these adverse market conditions.

John Hamilton, CEO Panoro, said: "The recent unprecedented COVID-19 pandemic and

oil price collapse have significantly impacted the energy industry. However,

proactive and decisive actions taken both prior to and during the ongoing crisis

have put Panoro in a stable position to weather the current health, oil price,

and logistical challenges we face. Our top focus is on protecting our highly

valuable assets whilst remaining financially prudent until the dislocated macro

environment improves.  We remain confident we will emerge from this crisis with

a resilient and competitive business for the benefit of all our stakeholders."

Enquiries

John Hamilton, Chief Executive Officer

Tel:     +44 203 405 1060

Email: investors@panoroenergy.com

About Panoro Energy

Panoro Energy ASA is an independent E&P company based in London and listed on

the Oslo Stock Exchange with ticker PEN. The Company holds high quality

production, exploration and development assets in Africa, namely the Dussafu

License offshore southern Gabon, OML 113 offshore western Nigeria, and the TPS

operated assets, Sfax Offshore Exploration Permit and Ras El Besh Concession,

offshore Tunisia.

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

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.