Panoro Energy ASA

Panoro Energy Announces Corporate Update

Oslo, 2 December 2016: Panoro Energy ASA ("Panoro" or the "Company" with OSE

ticker "PEN") announces that it is currently in disagreement with its Joint

-Venture Partners in OML 113 in Nigeria and intends to initiate arbitration and

legal proceedings to protect its interests.

The Company, through its fully owned subsidiary, Pan Petroleum Aje Limited

("PPAL"), holds 6.502% participation interest in OML 113.

PPAL has received default notice from the Technical Advisor on behalf of the

Operator of OML 113 in relation to a disputed cash call that Panoro believes to

be invalid due to an incorrect application of Joint Operating Agreement ("JOA")

provisions.

PPAL has received legal advice that the disputed cash call is baseless, and

therefore there are no grounds to issue the default notice to PPAL purporting to

hold PPAL in breach of its obligations under the JOA.

PPAL has asked the Joint-Venture Partners to agree to rescind and cancel the

claim for the disputed cash call and the purported default notice, but such

undertakings and agreement have unfortunately not been forthcoming. Panoro is

still proactively trying to resolve the issue in order to preserve shareholder

value. At this stage, no agreement has been reached and no assurance can be

given that any agreement will be reached.

As the cash call and default notice remain in dispute, PPAL intends to commence

arbitration proceedings pursuant to the JOA. In addition, to protect its rights

prior to commencement of the arbitration proceedings, PPAL has applied to the

High Court in London, UK for interim relief in order to protect its rights under

the JOA.

Panoro will seek to recover all losses, costs, expenses, compensation and

damages in law and equity caused directly or indirectly by the Joint-Venture

Partners' breach of their contractual and equitable obligations. Panoro will

also continue to take all necessary action to retain its equity participation in

OML 113 and to preserve shareholder value.

Further updates will be provided as necessary in accordance with Panoro's

continued disclosure obligations.

Enquiries:

Panoro Energy ASA +44 203 405 1060

John Hamilton, Chief Executive Officer [email protected]

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 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.

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