Panoro Energy ASA

Legal Proceedings Report • Mar 21, 2014

Panoro Energy provides an update on the OML 113 license (Aje field) in Nigeria

Panoro Energy provides an update on the OML 113 license (Aje field) in Nigeria

Panoro Energy ASA is pleased to announce that a Field Development Plan

(FDP) to develop the Aje Field has been approved by the Department of

Petroleum Resources (DPR) in Nigeria. Panoro also announce that the

Joint Venture partners expect to commence a new 3D seismic acquisition

program over the OML113 license.

Aje is an offshore field located in the western part of Nigeria in the

Dahomey Basin. The field is situated in water depths ranging from 100 to

1,000 meters about 24 km from the coast. Panoro Energy holds a 6.502%

participating interest in OML113 (with a 12.1913% revenue interest and

16.255% paying interest in the Aje Field).  The Aje Field contains

hydrocarbon resources in sandstone reservoirs in three main levels - a

Turonian gas condensate reservoir, a Cenomanian oil reservoir and an

Albian gas condensate reservoir.

The Aje FDP was submitted to DPR by the OML 113 joint venture partners

earlier this year, and approval to develop Aje as proposed in the FDP

has now been granted. The FDP is primarily focused on the development of

the Cenomanian Oil reservoir and in the first phase of development

includes two subsea production wells, tied back to a leased FPSO. These

wells will comprise the recompletion of the existing Aje-4 well, and a

new well drilled to the Aje-2 subsurface location. The Aje-2 well

demonstrated high productivity in a Cenomanian production test conducted

in 1997, flowing approximately 3700bopd of 41?API oil even though the

well had sustained significant productivity impairment during drilling

operations. The FDP envisages first oil commencing in Q4 2015 with mid

-case reserves of 32.4MMbbl. The Aje Joint Venture partners will take a

Final Investment Decision shortly. Future phases of the project will

likely target additional Cenomanian wells and a later Turonian/Albian

gas condensate project is currently considered as a separate development

in the future.

Panoro is also pleased to announce that the Joint Venture partners in

the OML 113 license are about to commence a new 3D seismic survey over

the OML 113 license offshore Nigeria. The survey is being carried out by

Polarcus as a part of joint acquisition program in combination with the

neighboring block OPL 310 to the east, where significant discoveries

were made in 2013. First Hydrocarbon Nigeria Ltd (a Joint Venture

Partner on the OML 113 license) will, through their parent company

Afren, manage the seismic acquisition operations and subsequent

processing and interpretation of the seismic data.   The Aje field and

many of the leads in OML 113 are already covered by a 3D seismic survey

acquired in 1997, however it is expected that the new survey will

provide a considerable improvement in data quality over the existing 3D

data. It is envisaged that the data will enable better development

planning for the second phase of development drilling on Aje and provide

improved data to fully evaluate the exploration potential over the whole

of the OML 113 license, including the exciting synrift exploration play

that was significantly de-risked though the discovery made in OPL 310.

The survey is expected to be completed by end of May 2014.

For further information, please contact:

Nishant Dighe, Chief Operating Officer

Cell: +44 7747807439

Email: nishant.dighe@panoroenergy.com

Carl Peter Berg, VP Commercial and Investor Relations

Cell: +55 21 8541 1907

E-mail: carl.peter.berg@panoroenergy.com

Please visit www.panoroenergy.com for more information. Panoro Energy

ASA is listed on the Oslo Stock Exchange (Ticker code: "PEN").