Panoro Energy ASA

Investor Presentation • Aug 22, 2019

Q2 2019 Results Presentation

August 2019 www.panoroenergy.com

Disclaimer

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 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

Q2 2019 Highlights

Operational

• Dussafu Q2 average gross production rate over 12,000 bopd and continues to produce above expectations • Dussafu drilling program commenced with
• spudding of Hibiscus Updip
• 4 production wells to follow, plus a minimum one additional exploration well
• TPS production 4,000 bopd gross for quarter, with target of 5,000 bopd by year end (and ca.4500 around end Q3) • Aje production stable
• Salloum West exploration well on track for spud towards end of year

Financial

• Gross revenue of USD 10.7 million for Q2 in line with liftings guidance (1H 2019 USD 30.6 million)
• EBITDA of USD 5.1 million (1H2019 USD 16.3 million)
• Cash balances including cash held for bank guarantee at USD 25.5 million
• Gross Debt of USD 27.4 million
• Reversal impairment at Dussafu

Active work program over next 12 months, and beyond

• 4 production wells at Tortue
• Hibiscus Updip well drlling Q3 • Gross target > 20,000 bopd Q2/2020 • Additional firm exploration well Q2 2020
• Possible 2 more exploration wells 2020
• Phase 3 development (no FID yet)
• Exploration well Salloum West late Q4
• Success case leads new exploration phase inc. seismic and additional well
• Workover activity Q3/Q4 at TPS
• end year
• Targeting 5000 bopd gross at TPS by • New production well at TPS in early 2020 (contingent)
• Further growth opportunities identified

Production Growth

A transformation, with additional growth underway

Slide 7 Q2 2019 Results Presentation

Key Metrics @ \$65 Brent

Q2 2019 Highlights

Q2 2019 Highlights
Amounts in Million USD	Q2 2019	Q1 2019	1H 2019	1H 2018	FY 2018	Highlights
Revenue and other income	10.7	19.9	30.6	4.6	13.0	• Crude Sales of 135,268 barrels in 2Q vs.
EBITDA	5.1	11.3	16.3	(0.8)	(1.9)
Net profit/(loss) after tax	8.1	(1.5)	6.6	(2.6)	(7.1)	• 6 international liftings in 1H 2019 which is likely to be the trend for 2H 2019
Underlying net profit/(loss) before tax*	1.0	7.8	8.8	(2.4)	(5.7)	• EBITDA on reporting basis higher due to 8.1 million
Cash and bank balances**	25.5	18.1	25.5	5.5	23.4	• Underlying Net Profit was USD 1 million compared to USD 7.8 million for 1Q
Gross debt	27.4	28.2	27.4	7.1	29.4	2019. Main difference due to higher sale
* Non-GAAP Financial Measures						• Key Non-cash items for 2Q:
From first quarter 2019, the Group has enhanced its disclosures and introduced the reporting of Underlying Operating Profit/(Loss) 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					before	1.6 million
on page 7 of the second quarter, 2019 report. ** Includes USD 10 million held for SOEP Guarantee as at 30 June 2019

Highlights

• Crude Sales of 135,268 barrels in 2Q vs. 283,360 barrels in 1Q 2019
• Average sale price of USD 68 / bbl in 2Q
• 6 international liftings in 1H 2019 which is likely to be the trend for 2H 2019
• vs. USD 62 / bbl in 1Q 2019 • EBITDA on reporting basis higher due to 8.1 million
• reversal of Dussafu impairment of USD • Underlying Net Profit was USD 1 million compared to USD 7.8 million for 1Q 2019. Main difference due to higher sale volumes in 1Q ‐ Dussafu Impairment reversal USD 8.1 million ‐ Unrealised gain on commodity hedges USD
• Key Non-cash items for 2Q:
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  • 1.6 million

Gabon

• Development Ownership: 8.333% (7.5% after Tullow back in)
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The Tortue Field

Panoro share 8.33% (Tullow back-in right would reduce to 7.5%) PHASE 1 – ON PRODUCTION at ~12,000 BOPD 1H 2019 PHASE 2 – SANCTIONED AND UNDERWAY

• Currently two subsea wells producing and tied back to BW Adolo
• No water nor wax produced to date has lifted reserve base
• Gross investment of USD 175 million

- Phase 2 benefitting from existing infrastructure

• Production wells coming onstream from Q1 2020
• 35 million barrels combined phase 1 and 2 gross reserves (31/12/18)
• Gross investment of USD ~240 million

PRODUCTION EXPECTED AT ~20,000 BOPD IN Q2 2020

Slide 11 Q2 2019 Results Presentation * Operator estimates

Slide 12 Q2 2019 Results Presentation

Hibiscus Updip Prospect Spud August 2019

Existing well (HIBM-1 well) at downdip location proved high quality Gamba sand

• Drilled by ARCO in 1991 based on 2D seismic
• Live oil shows in drill cuttings and full diameter core

• Good permeability measured in core

• Interpreted four-way structural trap

• Modern 3D seismic shot since initial HIBM-1 well
• Targeted resource size similar to Tortue and Ruche discoveries

Start of minimum 6 well drilling campaign

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• Additional Exploration well Q2 2020
• 2 optional rig slots

The Greater Ruche Development – The Next Step - Ruche is the second development hub with FID expected BW Adolo FPSO for processing

• Ruche to add another +15,000 bopd* gross production
• H2 2019 - First oil expected Q4 2021
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• Wellhead platform to be tied back 16 km to
• 6 wells planned targeting gross 28.5 mmbbl* reserves
• USD ~375 million capex
• Profitable Ruche production forecast beyond license term* - Dussafu PSC term ends in 2037
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  • future production

Tunisia

The Sfax Offshore Exploration Permit, containing the Ras Cretaceous and Eocene carbonate platforms of the Pelagian Basin offshore Tunisia. The TPS Assets comprise five oil field concessions in the region of the city of Sfax, onshore and shallow water offshore Tunisia.

Sfax Offshore Exploration Permit and

• Asset: Sfax Offshore Exploration Permit and
• Status: Exploration
• Ownership: 52.50% (1)
• Partners: ETAP (permit holder), Atlas Petroleum

TPS Assets

Asset: TPS Assets Status: Production Ownership: 29.4% (1) Partners: ETAP

Enhancing TPS Production Levels

The opportunity to bring assets back to historical levels

OIL PRODUCTION ALL TPS FIELDS, bopd

ACTIVITY SUITE

Enhancing production levels:

• New wells into nearby discoveries
• Sidetracks to undrained reservoirs or blocks
• Recompletions on new reservoir intervals

Maintaining existing production:

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

TPS Well Activities (and Proposed SMW-1)

Tunisia: Salloum Structure – Bireno Depth Map

Exploration well to spud at end of 2019

• SMW-1 to be drilled as a deviated well from onshore location
• Targeting fault compartment updip from the SAM-1 discovery well - British Gas drilled SAM-1 in 1991 - Oil discovery, short test at 1800 bopd • Bireno reservoir is main target - was tested in SAM-1 well - produces from nearby TPS assets • Mid case 5 million barrels (Panoro internal estimate)
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• -
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• Plans advanced to spud well in late 2019
• In success case well can tie in to Rhemoura production facility, part of the TPS assets

Environmental, Social and Governance

CORPORATE SOCIAL RESPONSIBILITY VISION

Panoro's mission is 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.

We meet our commitments efficiently and transparently 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 social responsibility.

ANTI-CORRUPTION

Our corporate conduct is based on our commitment to acting professionally, fairly and with integrity. Panoro Energy does not tolerate any form of bribery and corruption.

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.

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.

COMMUNITY AND LOCAL IMPACT

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.

Outlook

High levels of operational activity for next 12 months and beyond

Production enhancements in Tunisia

3-5 exploration wells, including

Focus on managing an ethical and safety conscious company

4 development wells at Tortue

Continued focus on strategy and business development

Contact Details:

PANORO ENERGY

78 Brook Street United Kingdom

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