Panoro Energy ASA

Earnings Release • Aug 14, 2014

Second quarter report 2014 August 14, 2014

Disclaimer

This presentation does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA ("Company"). This presentation contains certain statements that are, or may be deemed to be, "forward-looking statements", which include all statements other than statements of historical fact. Forward-looking statements involve making certain assumptions based on the Company's experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. Although we believe that the expectations reflected in these forward-looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward-looking statements due to known or unknown risks, uncertainties and other factors. These risks and uncertainties include, among others, uncertainties in the exploration for and development and production of oil and gas, uncertainties inherent in estimating oil and gas reserves and projecting future rates of production, uncertainties as to the amount and timing of future capital expenditures, unpredictable changes in general economic conditions, volatility of oil and gas prices, competitive risks, regulatory changes and other risks and uncertainties discussed in the Company's periodic reports. Forward-looking statements are often identified by the words "believe", "budget", "potential", "expect", "anticipate", "intend", "plan" and other similar terms and phrases. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, and we undertake no obligation to update or revise any of this information

Highlights

Second quarter 2014 and subsequent events

• Net Loss from continuing operations was USD -2.0 million, down from USD -5.8 million in the previous quarter
• Declaration of Commerciality signed and award of Exclusive Exploitation Authorisation on Dussafu permit. Field Development Plan submitted to the Gabonese Authorities
• Major advancements towards Final Investment Decision to develop the Aje Field (OML 113)
• Repayment of bonds leaving the Company debt free
• Ongoing Sales Process

Operational Review

Dussafu

Large exploration license with multiple discoveries and prospects

Project Status

• 2,775km² license in Southern Gabon pre-salt fairway
• Total of five pre-salt discoveries (4 oil, 1 gas) with upside/appraisal potential
• Panoro's oil discoveries in Ruche (2011) and Tortue (2013) have demonstrated the success in identifying oil-bearing structures
• Gaffney Cline reports received demonstrates commerciality of the discoveries with Economic Gross 2C Resources of 33.4MMbbl
• Important milestones achieved in Q2 2014 with Declaration of Commerciality and award of Exclusive Exploitation Authorisation
• Field Development Plan has been filed with the Government of Gabon
• Outboard 3D processing continuing with very positive initial results

Dussafu – Exclusive Exploitation Authorisation

• EEA awarded 17th July 2014
• Area of 850.5 km²
• Dussafu JV now has authorisation to exploit hydrocarbon resources in EEA area for up to 20 years
• Detailed development and production program submitted (FDP)
• Single FPSO with tiebacks
• Central Ruche location for FPSO
• Multiple horizontal and vertical wells into four fields
• Subsea tiebacks
• EEA area also captures prospective resources in satellite structures

Dussafu Outboard Potential

• New 3D seismic outboard of Ruche and Tortue
• Thickened Dentale section apparent
• Structure may be fold related rather than diaper induced
• Potential prospect sizes much larger than Ruche and Tortue
• Multiple stacked sandstones in Dentale
• Tortue well has de-risked Dentale reservoir quality
• EEA area includes 2 of these large prospects – JV now has exploitation rights to these for up to 20 years

Aje

Near term development with exploration upsides

Project Status

• Partners are focused on 2015 oil production
• Initial 2 well Cenomanian oil project, agreed by all JV partners
• FDP approval received end March
• Ongoing discussions with FPSO providers, and other key equipment providers
• Rigs being considered for Q1 2015 drilling
• Cenomanian first oil expected in Q4 2015
• Based on field performance a further 2 Cenomanian development wells may be drilled
• Turonian gas condensate project will follow in later phase
• OML 113 3D seismic being processed

Panoro : 16.255% paying interest, 6.502% working interest. Panoro is entitled to 12.2% of the revenue stream from Aje field Operator: Yinka Folawiyo Petroleum Other partners: NewAge, FHN (Afren),EER, Jacka Resources

Aje Cenomanian Oilfield Development Concept

Aje Field Appraisal and Development Scheme

• Key Subsea Equipment
• Trees and Manifold purchased
• Flowlines and umbilicals ordered
• Ongoing Contracts
• FPSO charter close to being finalised
• Transport and Installation
• FPSO Operations and Maintenance

Aje and Dussafu Project timelines

Aje and Dussafu Project timelines
		2014							2015				2016
	J	F	M	A	M	J	J	A	S	O	N	D	1 Q	2 Q	3 Q	4 Q	1 Q	2 Q	3 Q	4 Q
Nigeria
OML 113 Seismic		3D Seismic Acquisition and Processing
Aje FDP Submission			FDP
Aje FID								FID
Aje Development			FEED and Pre-development							Engineering and Procurement					Installation
Aje 4 and 5 Drilling														Drilling
Aje First Oil																s t Oil 1			Producing
Gabon
Dussafu Seismic			Outboard 3D Seismic Acquisition and Processing
Dussafu DoC / FDP		DoC / EEA / FDP
Dussafu FID												FID
Dussafu Development		Development Planning					FEED			Engineering, Procurement & Installation
Dussafu Drilling																			Development Drilling
Dussafu First Oil																				s t Oil 1

Financial review

Financial and accounting highlights

Q2-2014 and subsequent events

• Repayment of bond loan leaving the Company debt free
• Cash position of USD 60.1 million at end of Q2-14
• Net loss from continued operations of USD -2.0 million in Q2-14, down from USD -5.8 million in Q1-14
• Brazilian operations classified as discountinued and prior periods reclassifed for comparison purposes

Income and loss statement (USD '000)

Condensed consolidated statement of comprehensive income	Q1-2014	Q2-2014
Exploration related costs	-437	-168
Strategic review costs	-23	-74
Severance and restructuring costs	-18	-350
General and administrative costs	-1,202	-1,549
Net income / (loss) from continuing operations	-5,773	-2,017
Net income / (loss) from discontinued operations	41,039	-1,381

Group balance sheet

Per Jun 30, 2014

Balance sheet (USD '000)	Mar 31, 2014	Jun 30, 2014
Licenses and production assets	95,874	98,383
Other non-current assets	175	119
Total non-current assets	96,049	98,502
Trade and other receivables	924	2,963
Cash and bank balances	189,729	60,081
Total current assets	190,653	63,044
Total assets	286,702	161,546
Equity	157,091	153,772
Non-current interest-bearing debt	0	0
Other non current liabilities/Deferred tax liabilities	4,376	4,376
Total non-current liabilities	4,376	4,376
Current interest-bearing debt	123,394	-
Accounts payable, accruals, other liabilities	1,841	3,398
Total current liabilities	125,235	3,398
Total liabilities	129,611	7,774
Total equity and liabilities	286,702	161,546

Outlook

• Aje (OML 113)
• Final Investment Decision (FID) expected in Q3
• Processed 3D seismic expected Q1 2015
• Dussafu
• Processed 3D seismic for outboard section of Dussafu expected late Q3/early Q4
• Government approval of field development plan
• Ongoing Sales process

Second quarter 2014 financials Q&A

Please visit www.panoroenergy.com for more information