Panoro Energy ASA

Earnings Release • Feb 26, 2020

Panoro Energy Announces Full Year 2019 Results

Panoro Energy Announces Full Year 2019 Results

Oslo, 26 February 2020 - Panoro Energy (the "Company" or "Panoro" with OSE

ticker: "PEN") today announces the full year 2019 financial results and

corporate updates.

John Hamilton, CEO Panoro said: "Panoro has achieved exceptionally strong

financial and production results in 2019, with many metrics being a record for

the Company since the 2014/2015 board and management changes. The

transformational Hibiscus oil discovery in Gabon is also the largest exploration

success to date for the Company. The outlook for 2020 and beyond should see

these positive trends continue, with material additional production to increase

across the Company's core assets, along with exciting exploration wells to be

drilled. Panoro is committed to implement a balanced approach to both growth and

returning capital to shareholders through a dividend policy. We anticipate that

Panoro's shareholders will receive a very first dividend in the form of PetroNor

shares upon completion of the Aje sale. Panoro also intends to distribute up to

50% of net profit in the form of dividend payments or share buybacks once Ruche

Phase 1 production is fully on stream. We look forward to delivering on our

strategy for the benefit of all our stakeholders."

2019 Financial Highlights

· 2019 average net production approximately 2,371 bopd (2018: 1,315 bopd)

· 2019 Oil Sales and Other Revenue from continuing operations[1 ]USD 48.2

million in line with guidance (2018: USD 3.5 million). (Note Nigeria now

excluded from continuing operations)

· 2019 EBITDA from continuing operations of USD 25.9 million (2018: negative

USD 3.8 million) in line with guidance. (Note Nigeria now excluded from

continuing operations)

· 2019 Underlying Operating Profit before tax from continuing operations[2] of

USD 14.8 million (2018: loss of USD 3.7 million)

· 2019 reporting basis net profit before tax from continuing operations of USD

19.2 million (2018: loss of USD 4.3 million)

· Year-end cash balances of USD 30.4 million including cash held for bank

guarantee and external debt of USD 25.4 million

· Successful completion of private placement in 4Q 2019 raising USD 16 million

Operational Highlights

· Transformational exploration discovery at Hibiscus in Gabon

· DTM-4H and DTM-5H wells successfully drilled and completed at Tortue field

· Dussafu Ruche Phase 1 FID approved by JV partners

· Workover operations underway in Tunisia to achieve 5,000 bopd gross

production

· Rig secured to drill well on Guebiba field, to be followed by Salloum West

exploration well

Business Development Highlights

· Agreement to divest OML 113 signed in 4Q 2019 for USD 10 million plus up to

USD 25 million of contingent consideration

· Farm-in agreement signed on 25 February 2020 for 12.5% Working Interest in

Block 2B, offshore South Africa

Outlook and Guidance

· Tortue Phase 2 production wells on track to commence in early March (two)

and June (two)

· Up to five exploration wells to be drilled during the year

· Production operations activity in Tunisia at unprecedented levels

· Annual net production guidance between 2,600 bopd to 3,100 bopd (excluding

Aje)

· 11 international crude liftings guided, with smaller domestic sales in

addition

· 2020 net capital expenditure guidance of USD 31 million, to be funded from

existing resources

· Dividend of PetroNor shares upon completion, and new strategy to return up

to 50% of net profits following Ruche Phase 1 entering into production at end

2021

[1 ]Discontinued Operations

Aje operations in Nigeria classified as discontinued operations following

divestment agreement, pending completion, and excluded from continuing

activities.

[2 ]Non-GAAP financial measures

From start of 2019 the Group has enhanced its disclosures and introduced the

reporting of Underlying Operating Profit/(Loss) before tax from continuing

operations, a Non-GAAP Financial Measure. Underlying Operating Profit/(Loss)

before tax is considered by the Group to be a useful additional measure to help

understand underlying operational performance. The definition and details of

this Non-GAAP measure can be found on page 7 of the fourth quarter 2019 report.

Panoro will hold a live webcast presentation of the results today at 09:00 a.m.

CET. The webcast can be accessed through the following link where a presentation

will be relayed in listen only mode. (view-w.tv/819-1577-23102/en). Questions

can also be submitted via this link and will be covered by management in the Q&A

session of the call.

Should the participants wish to ask questions on the call, the audio of the

webcast can be accessed through the following calling numbers with the features

to ask live questions.

Participants are asked to dial-in five to ten minutes prior to the start time

using the number and password below:

Toll Free - Norway 800 19 457

Local - Oslo, Norway +47 2 156 3318

Toll Free - USA +1 866 966 5335

Local - New York, USA              +1 212 999 6659

Toll Free - UK 0808 109 0700

Local - London, UK +44 (0) 203 003 2666

Password: Panoro

Participants dialling in from outside these countries may use the UK or USA

number. A replay of the webcast will be available shortly after the event is

finished and will remain on our website 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.