Panoro Energy ASA

Investor Presentation • Feb 26, 2020

2019 Results Presentation

26 February 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

FINANCIAL

• Record Full year Revenue since 2013 at USD 48 million (ex Nigeria)
• Record EBITDA since 2013 at USD 26 million (ex Nigeria)
• Cash of USD 30 million (inc. deposit held for Salloum drilling)
• Gross debt of USD 25.4 million

• Group production of 2,371 bopd (inc. Aje 302 bopd)
• Aje classified as discontinued operation and removed from continuing results
• Gabon production to materially increase in 2020
• Tunisian production growth underway, multiple activities ongoing
• Transformational exploration discovery at Hibiscus

• Dividend strategy
• PetroNor Dividend
• Balance growth and shareholder distributions

STRATEGY OUTLOOK

• Material production growth anticipated in both production assets (guidance ca 50% higher than 2019)
• As many as five exploration wells to be drilled in 2020 (two are option slots)
• New exploration ventures, including South Africa

Gabon

Tunisia

Shareholder Distributions

Distribution of Up to 50% of Net Profit following start of Ruche Phase 1

Panoro's intention is to distribute to its shareholders up to \$10 million in Petronor shares received.

• As a special dividend in order for Panoro shareholders to retain a direct exposure in OML 113.
• Completion of the Transaction is conditional upon (1) the YFP Agreements achieving completion and (2) the authorisation of the Nigerian Department of Petroleum Resources and the consent of the Nigerian Minister of Petroleum Resources (anticipated mid 2020)

Once Ruche Phase 1 production is online, Panoro intends to distribute up to 50% of net profit in the form of dividend payments or share buybacks, or a combination of both in order to deliver returns to its shareholders.

• Following commencement of Ruche Phase 1 production in late 2021, Panoro is expected to generate significant post-tax free cash flow.
• As a result, the Board will announce in due course a more precise range of net profit to be available for distribution, taking into account several factors including but not limited to Panoro's operational and financial performance, deleveraging, global macro-environment and oil prices outlook.
• The Board is committed to implement a balanced approach to both growth going forward and returning capital to shareholders through a dividend policy.

1

Panoro Farm into Block 2B South Africa

• Panoro has signed a Farm Out Agreement with Africa Energy Corp. ("AEC"), part of the Lundin Group of Companies, for a 12.5% interest in Block 2B located in the Orange Basin, offshore the west coast of South Africa.
• The exploration block is an exciting rift basin oil play, with an existing oil discovery and near-term plans to drill a well to prove up material additional resources.
• The Gazania-1 well is targeting best estimate gross prospective resources of 349 million barrels of oil*
• Panoro will carry AEC subsidiary for up to \$2.5 million of their share of drilling costs.
• The well is expected to be spud as early as Q4 2020 depending on regulatory approvals and rig availability.
• Separately, AEC has announced a farm-out whereby Azinam Limited will take a 50% share and operatorship of Block 2B.
• Completion of transaction is subject to consent of Minister of Minerals and Energy of South Africa and Azinam farm-out becoming effective; approval process is anticipated to take approximately 6 months.

2019 and Q419 Highlights

Amounts in Million USD	2019	2018	Q4 2019	Q3 2019
Revenue and other income1	48.2	3.5	13.7	10.2
EBITDA1	25.9	(3.8)	5.2	6.2
Net profit/(loss) after tax1	5.4	(5.2)	(3.5)	2.1
Net profit/(loss) after tax including discontinued operations	10.2	(7.1)	3.1	0.5
Underlying net profit/(loss) before tax1,2	14.8	(3.7)	1.7	4.0
Cash and bank balances3	30.4	23.4		20.0
Gross debt	25.4	29.4		26.3

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

From first quarter 2019, 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 fourth quarter, 2019 report.

1. Includes USD 10 million held for SOEP Guarantee as at 30 September and 31 December 2019

Lifting and Capital expenditure guidance (excluding Aje)

2020 net Production Guidance of 2600-3100 bopd (excluding Aje) a 35% increase from 2019 (based on mid point)

• Typical lifting size for Dussafu 650 kbbls (54 kbbls net) Typical lifting size for TPS crude 150 kbbls (90 kbbls net)

• In addition, DMO liftings for TPS is about 12 kbbls net with 6-8 liftings in a calendar year
• Nigeria volumes not included (will continue to be held for sale in 2020 until completion)

• Dussafu expenditure includes one exploration well
• Salloum expenditure in Tunisia relates to planned Salloum West 1 well
• Development expenditure for Dussafu relates to Tortue Ph 2 and Ruche Ph 1
• South Africa well costs assumed to mostly fall in 2021, possible some in 2020
• Forecast operating cashflows and current cash position sufficient to 2020 and 2021 Capex commitments

Gabon Highlights

• Panoro active since 2007
• Exceptional exploration track record
• Dussafu largest exploitation area in Gabon
• Fiscal regime highly encourages drilling activity
• Multiple exploration and production wells being drilled over next 24 month
• Drilling success quickly tied into production facilities

Dussafu - High levels of activity 2020-2022

4Q Production at Tortue

Continued strong production for Tortue phase 1

TORTUE FIELD PRODUCTION

• Production from the Tortue field continued from the DTM-2H and DTM-3H wells during the quarter
• Average gross rate of around 10,800 bopd for the quarter
• Average gross rate of 11,779 bopd for the year
• For the project we expect and average of between 17.3 and 21.6 kbopd for 2020
  • This assumes DTM-4 and 5 start up in Q1 and DTM-6 and 7 start up in Q2

Transformational Hibiscus Updip Discovery

Substantial Oil Discovery in Dussafu

• Hibiscus Updip Well (DHIMB-1)
  • Gamba discovery with excellent reservoir properties
  • Main wellbore found 33 m oil column with 21 m of net pay
  • Sidetrack (DHIBM-1ST1) drilled 1.1 km to the northwest found 33 m oil column with 26 m of net pay
  • Oil water contact at the same level confirms continuity of the oil deposit
  • Broad flat structure with low relief
  • Gross 2P reserves of 45.4 million barrels of oil (vs pre-drill 12)
• Plans for development
  • Phase 3 redefined to include Hibiscus oil
• Upside
  • Discovery de-risks other prospects in Hibiscus area
  • Exploration drilling to continue after current development drilling on Tortue

Map showing newly discovered Hibiscus field and proximity to Ruche

Seismic line through Hibiscus field

Greater Ruche Development

Hibiscus has materially improved the next phases of Dussafu

• Ruche and Hibiscus to bring gross production to above current FPSO nameplate capacity of 40,000 bopd
  • FID achieved January 2020
  • First oil expected end 2021
• Wellhead platform to be tied back 19 km to BW Adolo FPSO for processing
• Six Gamba wells initially
• \$445 million gross capex*
• Overall opex/barrel to reduce to ca \$10 excluding royalties
• Subsequent development to maintain plateau at or above nameplate capacity, with up to seven new wells

75% increase in Prospective Resources (Operator update, Jan 2020)¹

Large inventory of exploration prospects and leads Dussafu discoveries and drilling prospects (mmboe)

DISCOVERIES	TARGET RESERVOIR	P50 CONTINGENT RESOURCES 1
Walt Whitman	Gamba	13
Moubenga	Dentale	6
EXPLORATION PROSPECTS	TARGET RESERVOIR	1 P50 PROSPECTIVE RESOURCES
Hibiscus North	Gamba	28
Prospect B	Gamba & Dentale	50
Mupale	Gamba	40
Walt Whitman NW	Gamba	7
WW 'String of Pearls'	Gamba	16
Prospect 18	Gambe & Dentale	15
Prospect A	Gamba & Dentale	39
Tortue SE	Gamba	17
Hibiscus South	Gamba	14
Espadon	Gamba & Dentale	7
Moubenga Upthrown	Gamba	18
Prospect 19	Gamba	17
Prospect 4	Gamba	13
TOTAL PROSPECTS	GAMBA & DENTALE	281

• NSAI geological chance of success of prospects between 36-90%
• Reprocessed Seismic Evaluation underway
  • Seismic acquired in 2013 by Panoro; Processed 2014
  • Re-processing is undertaken to improve resolution across entire EEA
• New data will be used to validate existing portfolio and identify new prospects

Tunisia Highlights

• Panoro entered in 2018
• Strategy was to diversify asset base
• Private equity backed entities and companies like Perenco moving in replacing historically active majors
• Purchased one of the most important assets in the country
• Production growth plans underway plus exploration potential

Tunisia Background

• Considered to be the only full democratic regime in the Arab world
• Association agreement with the EU a major non-NATO ally of the U.S.
• Low OPEX environment and significant presence from oil services providers
• ETAP, the national oil company, is a professional counterparty managing interest on behalf of the Tunisian State
• TPS assets currently over 10% of total domestic oil production

Establishing a New Core Area

Highly Prospective Area with Low Cost Production

Through two transactions established core area in prolific hydrocarbon basin

• Production assets purchased from OMV, low opex/bbl
• Exploration block acquired from DNO for negative consideration
• 400 million barrels already produced in surrounding blocks
• Close to existing infrastructure and producing fields, with spare capacity in pipelines and facilities
• DNO acquired new seismic in 2014
• Exploration targets identified over the permit – total P50 unrisked volumes of 250 mmbls

Enhancing TPS Production Levels Underway

The opportunity to bring assets back to historical levels

2020 ACTIVITY SUITE

Enhancing production levels:

• Six well program underway
  • ‐Production well to be drilled at Guebiba
  • ‐Three shut in wells currently under final stages of work-over re-completion
  • ‐Further well work-over awaiting drilling rig Q2
  • ‐Salloum West exploration well (Sfax permit, success case tied back to TPS)
• Plus further workover/enhancement activities being planned

Maintaining existing production:

• Well workovers for ESP/integrity management
• Optimisation of ESP pump performance

TPS Well Activities (and Proposed SMW-1)

GUE-10 Drilling

First Guebiba Drilling Operation Since 2015

• Approval granted by both ETAP and Panoro for TPS drilling of a production well on the Guebiba Field.
• The first activity of this type since 2015.
• Anticipated to spud Q2, to be drilled using the CTF Rig-06, a 2,000-horsepower onshore rig owned by Compagnie Tunisienne de Forage (CTF).
• The operations will utilise an existing top hole section and will target a new production interval on the Bireno formation at 3,600 meters in a known fault block compartment.
• The expected incremental production uplift from this well is expected to significantly increase the daily output at the TPS operated assets.
• Following the GUE-10 well operations the CTF Rig-06 will move to Salloum West to drill the SMW-1 exploration well

New Exploration Assets

Results driven strategy – near term development follow up

• In addition to substantial exploration in existing Gabon and Tunisia portfolio, Panoro is evaluating opportunities to expand its exposure to early stage opportunities
• Look to repeat exploration driven success at Dussafu by expanding footprint in Atlantic margin
• First opportunity is Block 2B in South Africa
• Additional opportunities being evaluated for modest stakes, partnering with reputable oil companies in region
• We expect these opportunities to mature into low risk exploration drilling with development follow on S.A. focus area

South Africa Block 2B

Proven Oil Basin

• A-J1 oil discovery in 1988 flowed high-quality oil to surface (36° API)
• Near-term low-risk exploration well planned updip from discovery
• Analogous to Lokichar Basin (Kenya) and Albertine Graben (Uganda)

ASSET SUMMARY
Panoro Energy interest (following approval)	12.5%
Partners (following approval)	Africa Energy (27.5%), Azinam (50%), Crown (10%)
Basin	Orange Basin
First well	Gazania-1
Planned spud date	As early as Q4 2020, dependent on approvals and rig avail.
Water depth	150 m
First well prospect size, Africa Energy estimates	349 MMbbl (1)
Well cost estimate	~\$21 MM
Play type	Rift basin
Min. commercial field size	< 50 MMbbl at \$60/bbl (2)
Work program to date	686 km2 of 3D seismic
Seismic data	3D survey by Western Geco 2013

(1) Best Estimate Prospective Resources - 200 MMbbl have been subject to resource assessment by qualified third-party resource auditor.

Slide 22 2019 Results (2) Africa Energy estimate.

Block 2B South Africa: Exploration well to target 349 million barrels*

Proven Oil Field With Significant Upside Shown On Seismic, Avo Support

1988	• Soekor drill AJ-1 well and find 37 mmbbl of oil at 36 API • No further data available, sanctions, discovery largely forgotten by industry
2013- 2016	• Seismic imaging shows that the intersected reservoir plus neighboring reservoirs could contain of ca. 400 million barrels*of oil in areas with very good reservoir qualities
2020/21	• Gazania-1 to be drilled as early as late 2020** targeting updip section of the discovered reservoir and overlapping potential reservoirs • Upside to 1 billion barrel of total oil on
	the licence according to Africa Energy*

Up to 1 billion barrels gross prospective resources in license*/**

A-J Graben Contingent & Prospective Resources

* These volumes have been subject to a resource assessment by a qualified third party resource auditor on behalf of Africa Energy Corp. These volumes have been disclosed as an arithmetic sum of multiple estimates of contingent and prospective resource, which statistical principles indicate may be misleading as to volumes that may actually be recovered.

** These volumes are Africa Energy Corp estimates and have not been subject to assessment by a qualified third party resource auditor.

Outlook 2020: Continued Production Growth with Exploration Activity

Salloum West 1

Dussafu Firm Exploration Well

2x Exploration Wells (Gabon, Contingent, Q3)

Block 2B South Africa (as early as end 2020)

Dussafu - 4 New Wells Onstream two in March two in June 2020 Production to materially increase

Tunisia – Unprecedented Activity Underway Initial target of ca 5000 bopd

Additional activities underway, including well at Guebiba and other initiatives

2020 Production to materially increase

Pursue Further Exploration

Aje Sale Completion (Subject to Approval, Summer)

Dividend Petronor Shares (Subject to Completion)

Environmental, Social and Governance

CORPORATE SOCIAL RESPONSIBILITY VISION

• To deliver superior returns to our shareholders by:
• Finding and producing oil and gas at low cost and at an acceptable level of risk with a focus on Africa;
• Meeting our commitments efficiently and transparently and expect the same of our host governments, partners, employees, contractors and customers;
• Treating stakeholders fairly and respectfully by adhering to high standards of governance, business conduct and corporate social responsibility.

ANTI-CORRUPTION

• The company, bound by its Ethical Code of Conduct, is committed to acting in an ethical and transparent manner and expect the same of our host governments, partners, employees, contractors and customers.
• We treat stakeholders fairly and respectfully by adhering to high standards of governance, business conduct and corporate responsibility.

ENVIRONMENT

• As an oil and gas exploration and production company, we have an important role to play in environmental management specifically in relation to impact of our seismic, drilling and production activities on the environment.
• We are committed to understanding, managing and reducing the environmental impact of our activities and to implement internationally recognised environmental management systems to achieve this aim.
• During 2020, Panoro will continue with the development of its systems and seeks to establish baseline performance and longerterm emissions targets that will allow stakeholders to gauge yearon-year performance.

COMMUNITY AND LOCAL IMPACT

• We have a commitment to operate responsibly wherever we work in the world and to engage with our stakeholders to manage the social, environmental and ethical impact of our activities in the different markets in which we operate.
• We believe that working in partnership with communities over a sustained period of time is the most effective way to achieve real results and lasting change.
• Our approach is to engage with our neighbours, community leaders, non-governmental organisations and charities with respect and dignity to understand the implications of our activities and changes in industry and wider society.

We have a commitment to operate responsibly wherever we work in the world and to engage with our stakeholders to manage the social, environmental and ethical impact of our activities in the different markets in which we operate.

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