Panoro Energy ASA

Earnings Release • Aug 27, 2020

Panoro Energy Announces Half Year 2020 (1H) Results and Provides Operations and Corporate Updates

Panoro Energy Announces Half Year 2020 (1H) Results and Provides Operations and Corporate Updates

Oslo, 27 August 2020 - Panoro Energy (the "Company" or "Panoro" with OSE ticker:

"PEN") is pleased to announce its financial and operating results for the six

months ended 30 June, 2020:

John Hamilton, CEO of Panoro, commented: "Further to the decisive actions taken

earlier in the year, the second quarter has seen a gradual return to a more

stabilised operating environment, and in fact oil production has performed very

well, with record quarterly output achieved. We are very excited by the newly

reprocessed Dussafu seismic, acquired by Panoro in 2013, indicating that the

Hibiscus area volumes could potentially be three times as big as initially

estimated.  Our strong hedging position has yielded robust results, and our

hedges extend until the end of 2021. Despite significant challenges remaining

due to COVID-19, the, Company is well positioned to deliver organic growth

through a focus on boosting production in Tunisia and on restarting delayed

activity in Gabon."

Financial Highlights

· Record quarterly production levels since 2013

· Third straight quarter of production increases to approximately 2,347 bopd

net for 2Q 2020

· Gross revenue excluding hedging income from continuing operations[1] of USD

8.5 million for the first six months of 2020 from three international oil

liftings

· Operating cost of under USD 15 per barrel of oil produced for the six months

to 30 June 2020

· Positive EBITDA and Operating Cash Flow (including hedges) in 2Q and 1H,

despite very low oil price and higher operating costs linked to workovers in

Tunisia

· Net income after tax for the six months to 30 June 2020 of USD 3.4 million,

principally from realised and unrealised gains on crude oil hedges of USD 9.2

million

· Capital expenditure of USD 9.1 million year to date (USD 4.1 million for the

second quarter), largely completing planned spending for 2020

· Cash balances of USD 19 million at 30 June 2020 (31 March 2020: USD 24.2

million) including cash held for bank guarantee

· Receivables from crude oil sales were USD 4.3 million at 30 June 2020 (31

March 2020: USD 3.1 million).  USD 2.7 million of these was collected subsequent

to quarter end

· Debt of USD 22.8 million (31 March 2020: USD 23.4 million), with USD 2.9

million having been repaid in the first half, followed by a further USD 0.7

million repayment in July

Operational Highlights

· Production and lifting operations maintained and largely unaffected through

crisis

· Health and Safety systems and protocols proved resilient

· In Gabon, quarterly production at record high of 15,991 bopd gross on

average, with current production in excess of 18,000 bopd

· At Dussafu, seismic reprocessing completed, potential for material increase

in hydrocarbon volumes at Hibiscus

· Tunisian quarterly production of 3,903 bopd gross on average, with periods

of production at 4,300

· In Tunisia, operational constraints imposed by the COVID-19 pandemic

gradually began to be released in the latter part of May though international

travel restrictions still apply

· Workover activities recommenced in June with multiple wells currently being

prepared for production

· Guebiba 10 side- track spud in August with rig CTF 06, targeting undrained

oil in a location close to the crest of the field

Corporate Highlights

· Hedging strategy proving effective in period of extremely volatile and low

oil prices, realising USD 2.7 million in finance income during 1H

· Three non-executive directors purchased shares during the quarter

Outlook and Guidance

· Two international liftings (one of each Tunisia and Gabon) for 3Q; three

liftings expected in 4Q (two Gabon, one Tunisia)

· Hedging position remains strong at approximately 25% of production hedged

until end 2021 at USD 55 per barrel

· 2020 net production guidance of 2,300-2,500 bopd

· In Gabon, production from DTM-6H (drilled but not tied in) and DTM-7H (to be

drilled) to be brought into production likely during 1H 2021

· Production growth activity in Tunisia at unprecedented levels

· Dividend of PetroNor shares to Panoro shareholders upon completion of sale

of Aje

(1) Discontinued Operations

Aje operations in Nigeria classified as discontinued operations following

divestment agreement, pending completion, and excluded from continuing

activities.

The Company will hold a live presentation of the Half year results at 09:00 a.m.

CEST today, during which management will discuss the results and operations of

the period. After conclusion of the discussion, participants will be invited to

ask questions on the results report.

The results presentation can be accessed through registering at the link below

and the online access to the event will be equipped with features to ask live

questions. The audio Q&A feature will only be available for attendees who join

online. Joining instructions for participating online or through using local

dial-in numbers will be available upon completion of registration. The

presentation details are as follows:

Date and 27 August 2020, 09:00 a.m. CEST

Time:

Registration: https://attendee.gotowebinar.com/register/8566658338913719309

After registering, participants will receive a confirmation

email containing information about joining the results

presentation. Participants can use their telephone or computer

microphone and speakers (VoIP).

Please join the event at least five minutes before the scheduled start time.

A replay of the 1H results presentation will be available shortly after the

event is finished and will remain on our website (www.panoroenergy.com) for

approximately 7 days.

Enquiries

Qazi Qadeer, Chief Financial Officer

Tel:     +44 203 405 1060

Email: investors@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 high quality

production, exploration and development assets in Africa, namely the Dussafu

License offshore southern Gabon, OML 113 offshore western Nigeria, and the TPS

operated assets, Sfax Offshore Exploration Permit and Ras El Besh Concession,

offshore Tunisia.

For more information visit the Company's website at www.panoroenergy.com.