Panoro Energy ASA

Earnings Release • Feb 19, 2019

Panoro Announces 50% Increase in 2P Oil Reserves at Tortue Field, Dussafu PSC, Offshore Gabon

Panoro Announces 50% Increase in 2P Oil Reserves at Tortue Field, Dussafu PSC, Offshore Gabon

Oslo, 19 February 2019 - Panoro Energy ASA (the "Company" or "Panoro" with OSE

ticker: "PEN") is pleased to provide an update on the Dussafu Production Sharing

Contract ("PSC"), offshore Gabon, including a new oil reserves review from

independent reserves auditor Netherland, Sewell & Associates Inc. ("NSAI") on

the Tortue field located within the PSC.

John Hamilton, Chief Executive Officer of Panoro, said "The 50% increase in the

mid-case scenario compared with the end of 2017 reserve report combined with the

strong oil production clearly demonstrates the value of Tortue and more

generally the huge potential for Dussafu to become a world-class producing

asset. We are very excited by the initial production performance and look

forward to continuing delivering strong results at Dussafu."

Reserve Increase Tortue Field

The Tortue field ("Tortue") is one of five existing oil discoveries in the

Dussafu Exclusive Exploitation Area ("EEA") in which Panoro currently holds an

8.33% working interest.

As a result of the successful 2018 development drilling campaign at Tortue,

previously reported Contingent Resources from the western flank of the field

have now been re-categorized as reserves. Consequently, the 2P gross remaining

reserves at Tortue have substantially increased by 11.6 million barrels,

approximately 50% higher as compared to year end 2017. The remaining reserves

are calculated after deducting 1.2 million barrels produced during 2018. The

NSAI estimates are based on a total of 6 wells at Tortue.

The NSAI reserves review does not yet include the other 4 discovered fields in

the EEA (Ruche, Ruche North East, Moubenga and Walt Whitman) which will be

updated in due course. In addition, the independent reserves review also does

not include prospective resources associated with the numerous prospects and

leads already identified within the EEA.

NSAI has calculated the following estimates for the total gross economically

recoverable oil reserves as at December 31, 2018, derived from the assumed

production from six oil wells at the Tortue field (compared to four wells

previously:

·  Proved (1P) reserves of 25.9 MMbbls

·  Proved + Probable (2P) reserves of 35.1 MMbbls

·  Proved + Probable + Possible (3P) reserves of 48.3 MMbbls

Production at Tortue

Following first oil in mid-September 2018, gross production from Tortue totalled

1.2 million barrels during Q4 2018, which included a number of well shut-ins and

pressure build up tests. For the full 2018 fourth quarter gross production at

Tortue was an average of 11,800 barrels of oil per day. Average opex per barrel

for the period was $23 per barrel including various one-off costs associated

related to the field start-up. The first cargo of approximately 550,000 barrels

of oil from Dussafu was successfully offloaded from the BW Adolo FPSO on 2

December 2018. The achieved price was approximately $56 per barrel. A second

lifting of 310,000 barrels of oil for the Government of Gabon was completed

later that same month.

Production during January 2019 has continued strongly, with the monthly average

of 12,977 barrels of oil per day. To date there has been no occurrence of wax

detected and no water produced from the field. A third lifting of 650,000

barrels of crude was achieved at the beginning of February, with a sales price

of approximately $59 per barrel. Given the largely fixed operating cost base of

the FPSO development, opex per barrel is highly dependent on production rates.

Panoro estimates that opex per barrel will optimise once Phase 2 production is

on line.

Phase 2 Planning

Phase 2 planning activities are underway with drilling due to commence in the

second half of 2019. In this second phase of Tortue, up to four development

wells will be drilled in the Gamba and Dentale reservoirs with production start

-up of the phase 2 wells projected for the first quarter of 2020. Once all the

Phase 1 and Phase 2 wells at Tortue are in production, targeted initial rates

are anticipated to be over 20,000 barrels of oil per day from Tortue. The Phase

2 drilling programme will also comprise of at least 2 exploration wells in the

Dussafu PSC.

Enquiries

John Hamilton, Chief Executive Officer

Tel: +44 203 405 1060

Email: investors@panoroenergy.com

The Dussafu

The Dussafu Permit, a Production Sharing Contract, offshore Gabon, is operated

by BW Energy Gabon and Panoro's current interest in the license is 8.33%. There

are five oil fields within the Dussafu Permit: Moubenga, Walt Whitman, Ruche,

Ruche North East and Tortue. The latter three fields were discovered by Panoro

and JV partners in the last 7 years. The development of the Dussafu fields now

is underway, with production from 2 wells at the Tortue field having started in

September 2018. Oil is produced from the Gamba and Dentale reservoirs at Tortue

into a leased Floating, Production, Storage and Offloading (FPSO) vessel via

subsea trees and flowlines. Phase 2 development activities are planned for 2019

and 2020 with up to four additional development wells to be drilled at the

Tortue field. The exploration potential in Dussafu is significant and

interpretation of recent 3D seismic data has confirmed several large Dentale

prospects and numerous Gamba prospects in addition to the already discovered

resources. Certain of these prospects will be targeted in the planned 2019-2020

drilling campaign.

Tullow Oil Gabon S.A. a subsidiary of Tullow Oil plc, holds a 10% back-in right

under the terms of the Dussafu PSC which is exercisable within a certain time

after first oil.

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.