Panoro Energy ASA

Legal Proceedings Report • Jan 2, 2018

PANORO ENERGY ENTERS INTO FINAL SETTLEMENT WITH AJE (OML 113) JV PARTNERS

PANORO ENERGY ENTERS INTO FINAL SETTLEMENT WITH AJE (OML 113) JV PARTNERS

Oslo, 2 January 2018 - Panoro Energy ASA (the "Company" or "Panoro" with OSE

ticker: "PEN") is pleased to report that, further to its announcement of 2

November 2017, its fully-owned subsidiary Pan Petroleum Aje Limited ("PPAL") has

entered into a definitive and binding settlement agreement (the "Agreement")

with the other OML 113 joint-venture partners (the "Aje JV Partners"). This

Agreement resolves and settles the dispute between the Aje JV partners and PPAL

in relation to drilling of new development wells.

The highlights of the Agreement include:

· All JV Partners have agreed to halt and withdraw all litigation and

arbitration proceedings among the partners;

· PPAL will not pay for any Aje-6 costs that have been incurred by the JV,

until such time the equipment and parts are to be used in any potential future

well operations;

· Substantial court costs already awarded to PPAL to be retained and any

remaining balances credited in favour of PPAL; and

· PPAL's US$ 1.5 million cash security deposit held with UK Courts Funds

Office will be returned.

John Hamilton, Chief Executive Officer of Panoro, said "We are very pleased to

have reached this out-of-court settlement agreement. In combination with the

interim measures announced in November, this amicable and pragmatic approach

finally resolves the longstanding dispute. We believe this outcome is a positive

development for Panoro and our Aje JV Partners. With this issue behind us, our

utmost priority is now to realise the significant potential of the Turonian Gas

Development."

Further details of the Agreement are as follow:

· The Agreement is in full and final settlement of the claims made in the

English and Nigerian litigation proceedings as well as in the arbitration

proceedings that had been commenced during the dispute (the "Proceedings");

· The Aje JV Partners will take all necessary and reasonable procedural steps

promptly to terminate the Proceedings;

· Where costs in respect of any of the Proceedings have been ordered by a

court to be paid to PPAL, to the extent that such costs have not yet been paid

to PPAL, such costs will be credited to PPAL;

· The injunction granted to PPAL on 2 December 2016, and confirmed on 20

January 2017, (the "Injunction") shall be discharged;

· PPAL shall be entitled to the immediate release of its undertaking recorded

in respect of the Injunction and PPAL shall be entitled to the immediate return

of the US$ 1.5 million deposit with the UK Courts Funds Office as security of

its cross-undertakings in respect of the Injunction, together with all interest,

if any, accrued thereon;

· Save as stated below, PPAL shall pay its share of current cash calls in

accordance with the arrangements referred to in the previous announcement of 2

November 2017; and

· PPAL shall not pay for any costs unpaid by it in relation to the Aje-6

development well expenditure incurred prior to 20 December 2017 until such time

as the equipment, good or service the subject of the expenditure had been

utilised in any potential new well petroleum operations on or after 20 December

Enquiries:

John Hamilton, Chief Executive Officer

Tel:    +44 203 405 1060

Email: info@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 production,

exploration and development assets in West Africa, namely the Dussafu License

offshore southern Gabon, and OML 113 offshore western Nigeria. In addition to

discovered hydrocarbon resources and reserves, both assets also hold significant

exploration potential. For more information, please visit the Company's website

at www.panoroenergy.com.