Panoro Energy ASA

Regulatory Filings • Oct 31, 2018

Panoro Signs Heads of Terms for the drilling of first well offshore Sfax

Panoro Signs Heads of Terms for the drilling of first well offshore Sfax

Oslo, 31 October 2018 - Panoro Energy (the "Company" or "Panoro" with OSE

Ticker: PEN) is pleased to announce that its fully owned subsidiary Panoro

Tunisia Exploration AS ("Panoro Tunisia") has just signed a Heads of Terms with

Compagnie Tunisienne de Forage ("CTF"), the Tunisian state-owned drilling

contractor, for the use of the CTF-4, a 2,000-horsepower onshore rig, or

equivalent drilling rig, for the drilling of the Salloum West-1 well ("SAMW-1")

located in the Sfax Offshore Exploration Permit ("SOEP"). The spud date of the

SAMW-1 well is anticipated to be in the first half of 2019 and is subject to the

entry into a second renewal period of the SOEP for a period of 3 years, and the

subsequent approval of the final drilling program and budget by ETAP. Advanced

discussions for the renewal are ongoing with the Tunisian Authorities.

The announcement to spud the SAMW-1 well, to be directionally drilled from the

shore as a deviated well, comes only 3 months after the closing of the

acquisition of DNO Tunisia AS.

The primary objective of the SAMW-1 well is the Bireno formation, at

approximately 3,200 metres vertical depth, where the Company has identified,

based on 2D and 3D seismic data, what it believes to be an extension of the

Salloum structure to the west. The SAMW-1 well will target an independent fault

compartment up-dip from the Salloum-1 well which was drilled by British Gas in

1992 and tested the Bireno formation at a rate of 1,846 bopd.

The objective of the SAMW-1 well is to prove up additional resources in the

vicinity of the Salloum-1 well and subsequently fast-track the development of

Salloum through a tie-in to existing adjacent oil infrastructure.

The decision to drill this new well is supported by rig availability, cost

-savings due to drilling equipment for the well already being owned and stored

in Panoro's Sfax warehouse, existing 2D and 3D seismic covering the SAMW-1

location, close proximity to the Salloum-1 discovery well, the existing adjacent

oil infrastructure, and a high chance of success.

The expenditure on SAMW-1 well will be funded from Panoro's existing financial

resources. The well costs will also be an added to the existing substantial cost

pool of SOEP which will be fully recoverable against future revenues through the

cost oil mechanism.

John Hamilton, Chief Executive Officer Panoro Energy said: "We are excited to

have signed this drilling Heads of Terms with CTF only 3 months after our entry

in Tunisia and to expand our working relationship with our esteemed partner

ETAP. SAMW-1 represents a low cost and attractive risk-reward drilling

opportunity which could enable a fast-track development of the Salloum oil

discovery located on the Sfax Offshore Exploration Permit".

Enquiries

John Hamilton, Chief Executive Officer

Tel:     +44 203 405 1060

Email: investors@panoroenergy.com

About SOEP

SOEP is operated by Panoro Tunisia Exploration AS and Panoro's current interest

in the license is 87.5%. SOEP covers an area of 3,228 km2 within the

historically prolific oil and gas producing region offshore the city of Sfax.

There are three oil discoveries on the permit, Salloum, Ras El Besh, and

Jawahra, with gross recoverable oil estimated by the former operator of 20

million barrels. In addition to these discoveries there is considerable

exploration potential in the Permit, and the previous operator's P50 unrisked

gross estimate was 250 million barrels. In the vicinity of SOEP area are

numerous existing producing fields with infrastructure and spare capacity in

pipelines and facilities.

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 Sfax

Offshore Exploration Permit and the Ras El Besh Concession, offshore Tunisia.