Panoro Energy ASA

Regulatory Filings • Nov 2, 2017

OML 113 Update - Agreement with Aje JV Partners

OML 113 Update - Agreement with Aje JV Partners

Oslo, 02 November 2017 - Panoro Energy ASA (the "Company" or "Panoro" with OSE

ticker: "PEN") announces that its subsidiary Pan Petroleum Aje Limited ("PPAL")

has entered into an important binding agreement (the "Agreement") with the OML

113 joint-venture partners (the "Aje JV Partners"). The Agreement, as detailed

below, in conjunction with other initiatives, addresses a number of operational

and financial issues and demonstrates the commitment of the Aje JV Partners to

support the current oil project and to move forward with the development of the

Turonian gas reserves.

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

have reached this meaningful agreement and believe this outcome is in the best

interest of Panoro and our Aje JV Partners. In the meantime, we will continue

constructive discussions with our JV Partners towards finalising a full

settlement of the outstanding arbitration and litigation as soon as possible. We

look forward to working all together towards our common objective of making the

Aje oil project successful while realising the significant potential of the

Turonian gas development."

The main terms of the Agreement are the following:

· During a transitional period of approximately one year, the Aje JV Partners

have agreed governance and funding arrangements which allow:

· All JV Partners to participate in decision-making as regards operations in

the field;

· Operations to be solely funded from revenues from crude oil sales;

· Payment moratorium on any past unpaid and uncontested cash calls (some JV

Partners including PPAL have outstanding amounts due, as previously disclosed);

· No Aje JV Partners will require any other Aje JV Partners to withdraw from

OML 113;

· All JV Partners have agreed to suspend certain ongoing litigation and

arbitration proceedings among the partners;

· All JV Partners will use best efforts to negotiate and enter into an

amicable settlement of all such disputes as soon as possible; and

· All JV Partners have agreed to measures that will facilitate the further

development of oil and gas reserves at Aje.

In addition, Panoro is pleased to report that continuous efforts to reduce costs

at Aje have already resulted in a material decrease in the overall operational

expenditures. Other commercial arrangements and adjustments are being

implemented and are expected to improve operating margins for the Aje JV

Partners.

Finally, as previously announced, Panoro remains committed to explore all

options to maximise value at Aje, including, but not limited to, a partial or

full divestment of its participation in OML 113.

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.