Panoro Energy ASA

Earnings Release • Nov 20, 2024

.

Trading and Financial Update Third Quarter 2024

20 November 2024

www.panoroenergy.com

ABOUT PANORO 3
HIGHLIGHTS, EVENTS AND UPDATES 3
FINANCIAL INFORMATION 6
Condensed Consolidated Statement of Comprehensive Income 6
Condensed Consolidated Statement of Financial Position 8
Condensed Consolidated Statement of Changes in Equity 9
Condensed Consolidated Statement of Cashflows 10
Segment information 11
Notes 12
OTHER INFORMATION 13
Glossary and definitions 13
Disclaimer 13

ABOUT PANORO

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 interests in Block-G, Block S, Block EG-01 and Block EG-23 offshore Equatorial Guinea, the Dussafu Marin, Niosi Marin and Guduma Marin blocks offshore southern Gabon, the TPS operated assets, Sfax Offshore Exploration Permit and Ras El Besh Concession, offshore Tunisia, and onshore Exploration Right 376 in South Africa.

HIGHLIGHTS, EVENTS AND UPDATES

Third Quarter 2024 Highlights and Events

Production update

• › Group working interest production target of over 13,000 bopd by year-end has been reached ahead of time
• › In Gabon, gross production at Dussafu has reached over 40,000 bopd with production from three wells yet to be brought onstream
• › Scope exists for FPSO nameplate capacity of 40,000 bopd to be exceeded by approximately 10 per cent
• › In Equatorial Guinea, the first infill well at the Ceiba field was successfully put onstream at an initial rate in excess of 5,000 bopd, with one further infill well at the Okume Complex now completed and starting up production
• › Group working interest production for Q3 and the first nine months was:

Average W.I. production - bopd	Q3 2024	9M 2024
Equatorial Guinea	3,268	3,401
Gabon	4,798	4,286
Tunisia	1,335	1,557
Total	9,401	9,244

› Full year 2024 working interest production is expected to average approximately 10,000 bopd after adjusting for the later start-up of the new infill wells in Equatorial Guinea during Q4

Crude oil liftings

› Crude oil volumes lifted and sold in Q3 and the first nine months were:

	Q3 2024	9M 2024
Volumes lifted	397,652 barrels	2,079,546 barrels
Average realised price after adjustments and customary fees	USD 80.21 per barrel	USD 80.36 per barrel
Proceeds	USD 31.9 million	USD 167.1 million

• › In Q4 to date Panoro has completed aggregate scheduled liftings of 351,067 barrels (which included a Tunisian lifting of 171,498 barrels previously expected to occur in late Q3) at an average realised oil price of USD 73.27 per barrel
• › Full-year 2024 liftings are expected to be approximately 3.5 million barrels (unchanged) with approximately 1.4 million barrels lifted / to be lifted in Q4 (approximately 40 per cent of annual volume lifted in Q4)
• › The Company has hedges in place covering 490,000 barrels of remaining Q4 liftings at an average floor price of USD 70.9 per barrel through a mix of collars and swaps

Financial update

• › Reported revenue in Q3 was USD 36 million (Q2: USD 73.9 million)
• › Q3 EBITDA was USD 23.7 million (Q2: USD 39.1 million) with profit before tax of USD 4.3 million (Q2: USD 21.3 million) and net profit for the period of USD 0.3 million (Q2: 12.1 million)
• › Reported revenue for the first nine months was USD 178.8 million (9M 2023: USD 173.5 million)
• › EBITDA for the first nine months was USD 101.4 million (9M 2023: USD 103.7 million) with profit before tax of USD 46.6 million (9M 2023: USD 61.2 million) and net profit of USD 24.4 million (9M 2023: 28.8 million)
• › Based on barrels already lifted and sold and scheduled remaining liftings in Q4 the Company expects EBITDA for full year 2024 will be approximately USD 150 million (assuming an average price realisation of USD 70 per barrel for remaining 2024 liftings)
• › Cash at bank at 30 September was USD 18.7 million which includes advances taken against future oil liftings of USD 10.4 million
• › The amount owing under the Company's RBL facility at 30 September 2024 was USD 72.8 million which included USD 2.4 million accrued interest which was paid in early October (excluding accrued interest the amount owing at 30 September 2024 was USD 70.5 million)
• › As previously communicated there has been upwards pressure on the Company's full-year capital expenditure guidance of USD 75 million, now estimated at approximately USD 95 million primarily due to the amended drilling programs in both Equatorial Guinea and Gabon:
  • o Note that capital expenditure at producing assets is cost recoverable under the terms of Panoro's production sharing contracts and tax provisions
  • o The rig extension and expanded drilling campaign offshore Gabon has resulted in a total of eight new production wells (compared to six wells originally planned) and a gross 2P reserve addition of 23.1 million barrels from new discoveries made with E&A pilot wells also added into the drilling programme
  • o The rescheduled infill drilling campaign offshore Equatorial Guinea has resulted in excess capital expenditure
  • o Lower than expected spend in Tunisia partially offsetting the above
• › Preliminary expectations for group capital expenditure in 2025 are unchanged at approximately USD 40 million
• › Post period end in October the Company made use of additional capacity in its lending facility of an additional USD 12 million to provide additional short-term working capital during this period of heavy development activity

Shareholder returns

• › Panoro today declares a Q3 2024 cash distribution of NOK 50 million to be paid in December as a return of paid in capital
• › Under the share buy-back programme announced on 23 May 2024 (of up to NOK 100 million) the Company, as at close of business on 15 November, had purchased a total of 1,281,500 of its own shares at a weighted average price of NOK 31.8821 per share, corresponding to 1.10 per cent of Panoro's share capital
• › Panoro remains committed to delivering regular and sustainable shareholder returns in line with its previously communicated 2024 shareholder returns policy

Production operations update

Equatorial Guinea – Block G (Panoro 14.25 per cent)

• › The C-45 and OF-19 infill wells were drilled with the Noble Venturer drill ship and both encountered good quality oil saturated reservoir sands in un-swept zones of the Ceiba field and Okume Complex respectively
• › The C-45 infill was put onstream on 1 November at an initial gross rate in excess of 5,000 bopd. The OF-19 infill well is now starting up production as planned
• › Current gross production at Block G following start-up of the C-45 well is approximately 29,000 bopd
• › The Noble Venturer is now drilling the Kosmos Energy operated Akeng Deep ILX well on the adjacent Block S which is the final operation of the current drilling campaign

Gabon – Dussafu Marin Permit (Panoro 17.5 per cent)

• › Gross production averaged 27,417 bopd in Q3, the highest quarterly rate achieved since production commenced on the block in 2018
• › Following completion and start-up of the DHBSM-2H well at the Hibiscus South field in July and DHIBM-7H well at the Hibiscus field in October, gross production at Dussafu has increased to current rates of 40,000 bopd from five out of the eight wells drilled in the current campaign in addition to the six pre-existing production wells at the Tortue field
• › A workover and ESP change-out of the DHIBM-4H well on the Hibiscus field was successfully completed in early November with production now being re-instated from the well
• › Three further workovers for ESP installation are planned during Q4 2024 and upon conclusion of this activity all eight production wells drilled in the current campaign will have conventional ESP systems installed

› The Bourdon prospect test well (DBM-1) will be the last rig operation under the current contract in early 2025

Tunisia – TPS Assets (Panoro 49.0 per cent)

• › New production opportunities include a workover campaign comprising ESP replacement and well stimulations
• › Detailed planning for development drilling campaign on the Rhemoura and Guebiba fields

Exploration and Appraisal Activities

Infrastructure led exploration ("ILX") wells

Equatorial Guinea – Akeng Deep ILX well, Block S (Panoro 12.0 per cent)

• › The Noble Venturer drill ship has commenced drilling of the Kosmos Energy operated Akeng Deep ILX well (S-6) in Block S with results expected in December.
• › The S-6 well is intended to test a play in the Albian, targeting an estimated gross mean resource of approximately 180 million barrels of oil in close proximity to existing infrastructure at Block G
• › Other partners in Block S are GEPetrol and Trident Energy
• › A successful outcome at Akeng Deep can have a positive read across to the adjacent Panoro operated Block EG-01 where Panoro has a 56 per cent interest and is conducting subsurface studies based on existing 3D seismic data. The seismic data re-processing project for EG-01 is proceeding to plan and will conclude during Q4

Gabon - Bourdon ILX well, Dussafu Marin (Panoro: 17.5 per cent)

• › The Bourdon prospect test well, DBM-1, is planned to be drilled in early 2025
• › Located in a water depth of 115 metres approximately 7 kilometres to the southeast of the BW MaBoMo production facility and 14 kilometres west of the BW Adolo FPSO. The Bourdon Prospect has an estimated mid-case potential of 83 million barrels in place and 29 million barrels recoverable in the Gamba and Dentale formations

Portfolio expansion

Equatorial Guinea – PSC signed for Block EG-23 (Panoro: 80.0 per cent, operator)

• › Located offshore north of Bioko Island and adjacent to the producing Alba gas and condensate field. 19 wells have been drilled to date resulting in seven hydrocarbon discoveries, some of which have been tested
• › Based on existing data, the Ministry of Mines and Hydrocarbons estimates Block EG-23 holds gross contingent resources of approximately 104 million barrels of oil and condensate and 215 billion cubic feet of gas
• › Initial period of three years to conduct subsurface studies based on existing seismic. Following this, the partners will have the option to enter into a further two-year period, during which they will undertake to drill an exploration well. Partnered with GEPetrol (20 per cent)

Gabon - PSCs signed for Niosi and Guduma blocks (Panoro: 25.0 per cent)

• › Adjacent to the Company's producing Dussafu Marin Permit and the producing Etame Marin Permit which is operated by VAALCO Energy
• › The PSC covering the Niosi block has an initial exploration period of five years with a work commitment of new 3D seismic data acquisition and one well. The PSC covering the Guduma block has an initial exploration period of three years with a work commitment of geological and geophysical studies. Both blocks have an option to extend the exploration period and enter a second phase with an additional well commitment
• › Partners in the Niosi and Guduma blocks are BW Energy (37.5 per cent and operator) and VAALCO Energy (37.5 per cent)

FINANCIAL INFORMATION

The financial information set out below is intended as a high level update of the results and financial position of Panoro. This information is unaudited and has been prepared using the same accounting policies and principles applied to preparation of the Group's 2023 Annual report.

Condensed Consolidated Statement of Comprehensive Income
Q3	Q2	Q3		YTD	YTD
2023	2024	2024		2024	2023
(Unaudited)	(Unaudited)	(Unaudited)	Amounts in USD 000	(Unaudited)	(Unaudited)
107,309	73,854	35,996	Total revenues	178,785	173,527
(39,665)	(22,435)	(26,457)	Operating expenses (including Royalties)	(71,969)	(64,281)
(564)	(9,977)	17,623	Inventory movements *	4,023	(1,338)
(132)	1,026	(122)	Non-recurring items	615	3,192
(2,164)	(3,356)	(3,386)	General and administrative costs	(10,033)	(7,417)
64,784	39,112	23,654	EBITDA	101,421	103,683
(11,135)	(11,849)	(13,106)	Depreciation, depletion and amortisation	(38,185)	(26,262)
(479)	(519)	(533)	Other non-operating items	(1,486)	(1,339)
53,170	26,744	10,015	EBIT - Operating income	61,750	76,082
(6,461)	(5,455)	(5,714)	Financial costs net of income	(15,178)	(14,910)
46,709	21,289	4,301	Profit before tax	46,572	61,172
(18,814)	(9,188)	(4,025)	Income tax expense	(22,137)	(32,337)
27,895	12,101	276	Net profit for the period	24,435	28,835
-	-	-	Other comprehensive income	-	-
27,895	12,101	276	Total comprehensive income for the period (net of tax)	24,435	28,835
			NET INCOME /(LOSS) FOR THE PERIOD ATTRIBUTABLE TO:
27,895	12,101	276	Equity holders of the parent	24,435	28,835
			TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE PERIOD ATTRIBUTABLE TO:
27,895	12,101	276	Equity holders of the parent	24,435	28,835
			EARNINGS PER SHARE
0.24	0.10	0.00	Basic and diluted EPS on profit for the period attributable to equity holders of the parent (USD) - Total	0.21	0.25

* Crude oil inventory and over/underlift movements form part of cost of sales and are valued using a cost per barrel that includes operating costs and depreciation, resulting in negative cost of sales during periods of limited or no liftings. Inventories at balance sheet date include an element of depreciation which stood at USD 3.7 million at 30 September 2024, USD 2.4 million at 30 June 2024 and USD 6.7 million at 31 December 2023.

holders of the parent (USD) - Continuing operations 0.21 0.25

0.24 0.10 0.00 Basic and diluted EPS on profit for the period attributable to equity

Underlying Operating Profit/(Loss) before tax is considered by the Group to be a useful non-GAAP financial measure to help understand underlying operational performance. The foregoing analysis has also been performed including, on an adjusted basis, the Underlying Operating Profit/(Loss) before tax from continuing operations of the Group. A reconciliation with adjustments to arrive at the Underlying Operating Profit/(Loss) before tax from continuing operations is included in the table below:

Q3	Q2	Q3		YTD	YTD
2023	2024	2024		2024	2023
(Unaudited)	(Unaudited)	(Unaudited)	Amounts in USD 000	(Unaudited)	(Unaudited)
46,709	21,289	4,301	Net income/(loss) before tax - continuing operations	46,572	61,172
479	519	533	Share based payments	1,486	1,339
132	(1,026)	122	Non-recurring items	(615)	(3,192)
-	-	-	Loss/(gain) on investment	-	26
-	-	-	Unrealised (gain)/loss on commodity hedges	-	133
47,320	20,782	4,956	Underlying operating profit/(loss) before tax	47,443	59,478

Underlying Operating Profit/(Loss) before tax is a supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Underlying Operating Profit/(loss) before tax as Net income (loss) from continuing operations before tax adjusted for (i) Share based payment charges, (ii) unrealised (gain) loss on commodity hedges, (iii) (gain) loss on sale of oil and gas properties, (iv) impairments write-off's and reversals, and (v) similar other material items which management believes affect the comparability of operating results. We believe that Underlying Operating Profit/(Loss) before tax and other similar measures are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the oil and gas sector and will provide investors with a useful tool for assessing the comparability between periods, among securities analysts, as well as company by company. Because EBITDA and Underlying Operating Profit/(Loss) before tax excludes some, but not all, items that affect net income, these measures as presented by us may not be comparable to similarly titled measures of other companies.

Condensed Consolidated Statement of Financial Position

	As at 30 September 2024	As at 30 June 2024	As at 31 December 2023
Amounts in USD 000	(Unaudited)	(Unaudited)	(Audited)
Tangible and intangible assets	545,487	531,311	502,532
Other non-current assets	149	143	143
Total Non-current assets	545,636	531,454	502,675
Inventories, trade and other receivables	77,161	71,859	85,349
Cash and cash equivalents	18,691	43,206	27,821
Total current assets	95,852	115,065	113,170
Total Assets	641,488	646,519	615,845
Total Equity	242,570	248,505	236,037
Decommissioning liability	139,995	138,203	129,111
Loans and borrowings	43,377	52,142	43,418
Other non-current liabilities	37,681	36,035	15,679
Deferred tax liabilities	69,632	71,074	72,883
Total Non-current liabilities	290,685	297,454	261,091
Loans and borrowings - current portion	27,824	16,459	26,071
Oil revenue advances	10,400	-	23,780
Trade and other current liabilities	41,714	42,602	34,485
Current and deferred taxes	28,295	41,499	34,381
Total Current liabilities	108,233	100,560	118,717
Total Liabilities	398,918	398,014	379,808
Total Equity and Liabilities	641,488	646,519	615,845

Condensed Consolidated Statement of Changes in Equity

For the nine months ended 30 September 2024 Amounts in USD 000	Issued capital	Share premium	Treasury shares	Additional paid-in capital	Retained earnings	Other reserves	Currency translation reserve	Total
At 1 January 2024 (Audited)	738	433,969	-	122,038	(277,300)	(37,647)	(5,761)	236,037
Net income/(loss) for the period - continuing operations	-	-	-	-	24,159	-	-	24,159
Other comprehensive income/(loss)	-	-	-	-	-	-	-	-
Total comprehensive income/(loss)	-	-	-	-	24,159	-	-	24,159
Settlement of Restricted Share Units	-	-	-	(1,230)	-	-	-	(1,230)
Buyback of own shares	-	-	(2,110)	-	-	-	-	(2,110)
Employee share options charge	-	-	-	981	-	-	-	981
Distributions to shareholders	-	(9,332)	-	-	-	-	-	(9,332)
At 30 June 2024 (Unaudited)	738	424,637	(2,110)	121,789	(253,141)	(37,647)	(5,761)	248,505
Net income/(loss) for the period - continuing operations	-	-	-	-	276	-	-	276
Other comprehensive income/(loss)	-	-	-	-	-	-	-	-
Total comprehensive income/(loss)	-	-	-	-	276	-	-	276
Settlement of Restricted Share Units	-	-	-	(701)	-	-	-	(701)
Buyback of own shares	-	-	(1,468)	-	-	-	-	(1,468)
Employee share options charge	-	-	-	507	-	-	-	507
Distributions to shareholders	-	(4,549)	-	-	-	-	-	(4,549)
At 30 September 2024 (Unaudited)	738	420,088	(3,578)	121,595	(252,865)	(37,647)	(5,761)	242,570

Attributable to equity holders of the parent

Attributable to equity holders of the parent

For the nine months ended 30 September 2023 Amounts in USD 000	Issued capital	Share premium	Treasury shares	Additional paid-in capital	Retained earnings	Other reserves	Currency translation reserve	Total
At 1 January 2023 (Audited)	723	428,503	-	121,834	(301,149)	(37,647)	(5,761)	206,503
Net income/(loss) for the period - continuing operations	-	-	-	-	940	-	-	940
Other comprehensive income/(loss)	-	-	-	-	-	-	-	-
Total comprehensive income/(loss)	-	-	-	-	940	-	-	940
Share issue - business combinations	14	8,319	-	-	-	-	-	8,333
Employee share options charge	-	-	-	860	-	-	-	860
Share issue under RSU plan	1	791	-	(792)	-	-	-	-
Distributions to shareholders	-	-	-	-	(5,807)	-	-	(5,807)
At 30 June 2023 (Unaudited)	738	437,613	-	121,902	(306,016)	(37,647)	(5,761)	210,829
Net income/(loss) for the period - continuing operations	-	-	-	-	27,895	-	-	27,895
Other comprehensive income/(loss)	-	-	-	-	-	-	-	-
Total comprehensive income/(loss)	-	-	-	-	27,895	-	-	27,895
Settlement of Restricted Share Units	-	-	-	(846)	-	-	-	(846)
Employee share options charge	-	-	-	483	-	-	-	483
Distributions to shareholders	-	-	-	-	(3,721)	-	-	(3,721)
At 30 September 2023 (Unaudited)	738	437,613	-	121,539	(281,842)	(37,647)	(5,761)	234,640

Condensed Consolidated Statement of Cashflows

Q3 2023	Q2 2024	Q3 2024		YTD 2024	YTD 2023
(Unaudited)	(Unaudited)	(Unaudited)	Cash inflows / (outflows) (USD 000)	(Unaudited)	(Unaudited)
46,709	21,289	4,301	Net (loss)/income for the period before tax	46,572	61,172
			ADJUSTED FOR:
11,135	11,849	13,106	Depreciation	38,185	26,262
411	20,905	(4,038)	Increase/(decrease) in working capital	11,457	(4,727)
(3,843)	(4,065)	(4,249)	State share of profit oil	(12,379)	(6,092)
(7,050)	(435)	(14,422)	Taxes paid	(19,095)	(11,457)
6,513	3,943	3,943	Net finance costs and losses/(gains) on commodity hedges	11,829	14,901
(344)	(675)	(186)	Other non-cash items	(419)	552
53,531	52,811	(1,545)	Net cash (out)/inflow from operations	76,150	80,611
			CASH FLOW FROM INVESTING ACTIVITIES
-	-	-	Cash outflow related to acquisition(s)	-	(4,848)
-	-	-	Net cash acquired at acquisition(s)	-	1,881
(14,081)	(20,510)	(27,290)	Investment in exploration, production and other assets	(75,061)	(47,037)
(14,081)	(20,510)	(27,290)	Net cash (out)/inflow from investing activities	(75,061)	(50,004)
			CASH FLOW FROM FINANCING ACTIVITIES
-
	-	-	Proceeds from loans and borrowings (net of upfront and arrangement costs)	10,000	14,758
-	25,856	-	MaBoMo sale and leaseback arrangement proceeds	25,856	-
(3,900)	(17,900)	10,400	Oil revenue advances	(13,380)	13,500
-	-	-	Repayment of non-recourse loan	-	(653)
(13,210)	(10,175)	-	Repayment of Senior Secured loans	(10,175)	(25,450)
(702)	-	-	Realised gain/(loss) on commodity hedges	-	(910)
(2,695)	(2,501)	-	Borrowing costs, including bank charges	(4,880)	(7,825)
-	(2,110)	(1,468)	Cost of buy-back of own shares	(3,578)	-
(59)	(59)	(63)	Lease liability payments	(181)	(169)
(3,721)	(4,643)	(4,549)	Distributions to shareholders	(13,881)	(9,528)
(24,287)	(11,532)	4,320	Net cash (out)/inflow from financing activities	(10,219)	(16,277)
15,163	20,769	(24,515)	Change in cash and cash equivalents during the period	(9,130)	14,330
31,837	22,437	43,206	Cash and cash equivalents at the beginning of the period	27,821	32,670

Segment information
Q3 2023	Q2 2024	Q3 2024		YTD 2024	YTD 2023
(Unaudited)	(Unaudited)	(Unaudited)	All amounts in USD 000 unless otherwise stated	(Unaudited)	(Unaudited)
			OPERATING SEGMENTS - GROUP NET SALES
3,623	3,455	3,268	Net average daily production - Block G (bopd)	3,401	3,637
4,069	3,712	4,798	Net average daily production - Dussafu (bopd)	4,286	2,680
2,316	1,562	1,335	Net average daily production - TPS assets (bopd)	1,557	1,835
10,008	8,729	9,401	Total Group Net average daily production (bopd)	9,244	8,152
649,853	682,415	-	Oil sales (bbls) - Net to Panoro - Block G, Equatorial Guinea	682,415	1,309,665
339,342	174,492	374,429	Oil sales (bbls) - Net to Panoro - Dussafu, Gabon	1,157,573	339,342
190,067	25,588	23,223	Oil sales (bbls) - Net to Panoro - TPS assets, Tunisia	239,558	366,005
1,179,262	882,495	397,652	Total Group Net Sales (bbls) - continuing operations	2,079,546	2,015,012
			OPERATING SEGMENT - WEST AFRICA - EQUATORIAL GUINEA
35,954	26,278	4,187	EBITDA	34,314	69,181
4,254	4,977	5,149	Depreciation and amortisation	14,915	11,444
256,797	266,352	285,217	Segment assets	285,217	256,797
			OPERATING SEGMENT - WEST AFRICA - GABON
19,690	11,772	22,262	EBITDA	63,184	22,576
5,072	5,313	6,806	Depreciation and amortisation	18,376	9,885
253,238	268,722	264,742	Segment assets	264,742
OPERATING SEGMENT - NORTH AFRICA - TUNISIA
7,084	2,548	137	EBITDA	10,930	16,240
1,272	1,500	1,097	Depreciation and amortisation	4,734	4,722
112,272	102,928	90,549	Segment assets	90,549	112,272
OPERATING SEGMENT - SOUTH AFRICA
(102)	(45)	(66)	EBITDA	(115)	(451)
152	151	157	Segment assets	157	152
			CORPORATE
2,158	(1,441)	(2,866)	EBITDA	(6,892)	(3,863)
537	59	54	Depreciation and amortisation	160	211
9,404	8,366	824	Segment assets	824	9,404
			TOTAL - CONTINUING OPERATIONS
64,784	39,112	23,654	EBITDA	101,421	103,683
11,135	11,849	13,106	Depreciation and amortisation	38,185	26,262
631,863	646,519	641,489	Segment assets	641,489	631,863

1. Basis of preparation

The purpose of the unaudited condensed consolidated financial statements contained herein is to provide a high level update on Panoro activities, does not constitute an interim financial report under IAS 34 and should be read in conjunction with the financial information and the risk factors contained in the Company's 2023 Annual Report, available on the Company's website www.panoroenergy.com.

The condensed consolidated financial statements are presented in US Dollars and all values are rounded to the nearest thousand dollars (USD 000), except when otherwise stated.

Panoro held a 60% investment interest in Sfax Petroleum Corporation AS ("Sfax Corp") up to 24 April 2023 (the "Transaction Date") at which time the remaining 40% interest was acquired from Beender Petroleum Tunisia Limited and Sfax Corp became a wholly owned subsidiary (the "Transaction"). Up to the Transaction Date, 60% of all account balances and transactions of the Tunisian operations have been included on a line by line basis in Panoro's financial statements by proportionally consolidating the results and balances of Sfax Corp and its subsidiaries. The additional 40% interest acquired was measured and accounted for at fair value and 100% of transactions and balances of Sfax Corp and its subsidiaries are consolidated after the Transaction Date. Detailed business combination disclosure of the Transaction was published in note 14 to the Annual Report.

1. Significant accounting policies and assumptions

The accounting policies adopted in preparation of these condensed consolidated financial statements are consistent with those followed in the preparation of the Group's 2023 Annual Report.

2. Principal risks and uncertainties

The Group's activities expose it to a number of risks and uncertainties, which are consistent with those outlined in the Group's 2023 Annual Report.

3. Loans and borrowings

3.1. MCB/Trafigura Senior Secured Reserve Based Loan

Current and non-current portion of the outstanding balance of the Trafigura Senior Secured Reserve Based Lending facility as of the date of the statement of financial position is as follows:

	30 September 2024	30 June 2024	31 December 2023
Amounts in USD 000	(Unaudited)	(Unaudited)	(Audited)
Borrowing Base Loan facility - Non-current	44,564	53,477	44,033
Borrowing Base Loan facility - Current	25,888	16,976	26,420
Borrowing Base Loan interest accrued - Current	2,361	-	-
Total Senior Loan facility	72,813	70,453	70,453
Borrowing Base Unamortised borrowing costs - Non-current	(1,187)	(1,335)	(615)
Borrowing Base Unamortised borrowing costs - Current	(425)	(517)	(349)
Total Unamortised borrowing costs	(1,612)	(1,852)	(964)
Total Senior Loan facility	71,201	68,601	69,489

Interest on this loan is charged and paid quarterly at USD 3-month SOFR plus 7.5% on the balance outstanding, with principal repayments due each six months. Un-amortised borrowing costs include structuring fees and directly attributable third-party costs. During the current quarter, these costs are expensed using an effective interest rate of 13.85% per annum over the remaining term of the facility.

Following the additional oil reserves discovered in Gabon, the Company made use of additional capacity of an additional USD 12 million in October.

OTHER INFORMATION

Glossary and definitions

Bbl	One barrel of oil, equal to 42 US gallons or 159 liters
Bopd	Barrels of oil per day
Kbopd	Thousands of barrels of oil per day
Bcf	Billion cubic feet
Bm3	Billion cubic meter
BOE	Barrel of oil equivalent
Btu	British Thermal Units, the energy content needed to heat one pint of water by one degree Fahrenheit
IP	Initial production
Mcf	Thousand cubic feet
MMcf	Million cubic feet
MMbbl	Million barrels of oil
MMboe	Million barrels of oil equivalents
MMBtu	Million British thermal units
MMm3	Million cubic meters
Tcf	Trillion cubic feet
EBITDA	Earnings before Interest, Taxes, Depreciation and Amortisation
EBIT	Earnings before Interest and Taxes
TVDSS	True Vertical Depth Subsea

Disclaimer

This report does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA ("Company"). This report 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, counter-party risks including partner funding, regulatory changes including country risks where the Group's assets are located 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 report, and we undertake no obligation to update or revise any of this information.

CONTACT INFORMATION

For further information, please contact:

John Hamilton, Chief Executive Officer

Panoro Energy ASA/ Panoro Energy Limited investors@panoroenergy.com Tel: +44 20 3405 1060

Qazi Qadeer, Chief Financial Officer Panoro Energy ASA/ Panoro Energy Limited investors@panoroenergy.com Tel: +44 20 3405 1060

Panoro Energy ASA – Trading and Financial Update - Third Quarter 2024 Page | 14

www.panoroenergy.com