Panoro Energy ASA

Business and Financial Review • Oct 20, 2021

Panoro Energy - Trading Statement and Operations Update

Panoro Energy - Trading Statement and Operations Update

Oslo, 20 October 2021 - Panoro Energy ASA ("Panoro" or the "Company") is pleased

to provide an update on operations and business performance in advance of the

Company's third quarter results which are due for release on 22 November 2021.

Financial and production information within this announcement remains subject to

final reconciliation.

John Hamilton, CEO of Panoro, commented today:

"We are pleased to update on the good progress being made across our portfolio

of production and development assets. With five new production wells on schedule

to start up in the fourth quarter at Block G in Equatorial Guinea and the

Dussafu Marin Permit in Gabon and stable production in Tunisia we continue to

have our sights on achieving net working interest production of around 9,500

bopd by year end. With oil prices touching three-year highs and a busy lifting

schedule in the fourth quarter, we expect to further consolidate our already

strong financial position."

Production

Company working interest production for the first nine months on a pro-forma

basis averaged approximately 7,500 bopd, a year-on-year increase of around +246%

compared to the first 9 months of 2020.

Equatorial Guinea - Block G (Panoro 14.25%)

The operator of the Ceiba field and Okume Complex, Trident Energy, announced on

14 October the installation of a new gas lift distribution unit ("GLDU") had

been successfully completed as part of its latest campaign to optimise

production at the Ceiba field. This follows on from the installation of a hot

-tapping saddle to create new gas injection points on subsea jumpers in addition

to replacement of a flowline riser. With 60% to 80% of the fields production

dependent on the gas lift system, installation of a new subsea network was a key

priority to provide increased reliability and optimise long term production

performance. The entire project was completed without a single lost time injury.

At the Okume Complex, the current three well infill drilling campaign is

progressing as planned, with all three wells expected onstream during the fourth

quarter.

Company working interest production for the first nine months averaged

approximately 4,240 bopd.

Gabon - Dussafu Marin Permit (Panoro 17.5%)

As part of the Tortue Phase 2 field development, hook-up of the final two

production wells DTM-6H and DTM-7H has been completed and handover to production

operations made. Production start-up commenced at the DTM-7H well on 19 October

and will be followed by the DTM-6H well in the coming days. Volumes from the two

new production wells will add to the existing current gross production rate of

around 11,500 bopd and will be updated at the Company's third quarter results

due on 22 November when a stabilised production rate from the new wells is

known.

The DTM-6H and DTM-7H wells conclude the Tortue Phase 2 development, whereby the

Tortue field now comprises six production wells tied back to the FPSO BW Adolo.

The Phase 2 development was completed by the operator BW Energy with zero

Health, Safety, Security and Environment (HSSE) incidents.

Gross production from the Tortue field for the first nine months averaged

approximately 11,000 bopd and for the third quarter approximately 9,000 bopd.

Third quarter production reflects plant shutdowns and temporary production

outages related in large part to the previously communicated shortage of gas

lift capacity. A nitrogen unit has been installed on the BW Adolo which has

significantly improved production efficiency.

Company working interest production for the first nine months averaged

approximately 1,920 bopd.

Tunisia - TPS Assets (Panoro 29.4%)

Gross production continues in the 4,500 to 5,000 bopd range with an active

workover campaign ongoing. At the Guebiba field a recent workover at GUE-14 has

again demonstrated the benefits of stimulation activities undertaken in

conjunction with ESP replacements where the well productivity was boosted by

some 50%. At the Rhemoura field a workover is in progress at RHE-1ASTG to

replace a failed ESP. At the Cercina field a further workover at CER-6AS is

pending improved weather conditions in the new year.

Elsewhere, efforts are ongoing to reinstate one of the two export pipelines from

the well El Ain site which would permit the production of EL AIN-1 while a new

pipeline and pump installed at GUE-8 has permitted water injection rates to the

Guebiba field to be increased, supporting the enhanced production from the

Douleb reservoir.

Company working interest production for the first nine months averaged

approximately 1,340 bopd.

Finance and crude liftings

The Company recognises revenue as liftings of its crude oil entitlement occur.

As previously guided, there were no Panoro liftings in the third quarter in

Equatorial Guinea or Gabon, with only one domestic lifting occurring in Tunisia.

The Company therefore does not expect to report a materially different revenue

to that reported for the first half.

In the fourth quarter the Company expects four liftings net to Panoro of

approximately one million barrels in aggregate in Equatorial Guinea, Gabon and

Tunisia.

At 30 September cash at bank stood at approximately USD 45 million (including

USD 10 million cash held for bank guarantee) and gross debt USD 97 million,

resulting in a net debt position of approximately USD 52 million.

Balances at 30 September reflect principal debt repayments of approximately USD

7 million in the third quarter and profits tax payments in Equatorial Guinea of

approximately USD 12 million, where profits taxes due are paid annually in the

third quarter.

Enquiries

John Hamilton, Chief Executive Officer

Qazi Qadeer, Chief Financial Officer

Tel: +44 203 405 1060

Email: investors@panoroenergy.com

About Panoro Energy

Panoro Energy ASA is an independent exploration and production company based in

London and listed on the main board of the Oslo Stock Exchange with the ticker

PEN. Panoro holds production, exploration and development assets in Africa,

namely a producing interest in Block-G, offshore Equatorial Guinea, the Dussafu

License offshore southern Gabon, OML 113 offshore western Nigeria (held-for

-sale, subject to completion), the TPS operated assets, Sfax Offshore

Exploration Permit and Ras El Besh Concession, offshore Tunisia and

participation interest in an exploration Block 2B, offshore South Africa.

Visit us at www.panoroenergy.com

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