Panoro Energy ASA — M&A Activity 2021

Apr 20, 2021

Panoro Completes Farm-in- to Block 2B, Offshore South Africa

Panoro Completes Farm-in- to Block 2B, Offshore South Africa

Oslo, 20 April 2021 - Panoro Energy ASA (the "Company" or "Panoro" with OSE

ticker: "PEN") is pleased to announce that it has received governmental approval

and closed the previously announced farmout agreement ("FOA") on Block 2B

offshore South Africa.

John Hamilton, CEO Panoro, said: "Following our recently announced successful

entry into Equatorial Guinea, we are pleased to now be adding a further country

into our growing portfolio of African E&P assets. Block 2B represents a

compelling exploration opportunity for Panoro, in a country with exciting world

class oil and gas discoveries. The Gazania-1 well is an exploration prospect

updip of an existing oil discovery with material potential upside. We look

forward to drilling this well with our partners, Africa Energy and Azinam, by

the end of the year".

In 2020, Panoro signed the FOA with a subsidiary of Africa Energy Corp. ("AEC"),

part of the Lundin Group of Companies.  Under the terms of the FOA, Panoro will

acquire a 12.5% interest and carry the relevant AEC subsidiary for up to $2.5

million of the well cost; Panoro's funding of costs is subject to escrow funds

being deposited by Azinam prior to the rig contract being signed. The well is

expected to be spud by the end of 2021 and the rig tender process is already

underway. Separately, AEC has announced the completion of a farm-out whereby

Azinam Limited will take a 50% share and operatorship in Block 2B. Azinam is a

private Southern Africa-focused oil and gas exploration company supported by

Seapulse Ltd., a vehicle backed by Robert Friedland and Seacrest.

About Block 2B

Block 2B is located in the Orange Basin and covers 3,062 square kilometers off

the west coast of South Africa 300 kilometers north of Cape Town with water

depths ranging from 50 to 200 meters. Oil was discovered and tested by Soekor in

the A-J1 borehole drilled in 1988. Thick reservoir sandstones were intersected

between 2,985 meters and 3,350 meters. The well was tested and flowed 191

barrels of oil per day of 36 degree API oil from a 10 meter sandstone interval

at about 3,250 meters. Significant prospectivity has been identified over the

entire A-J graben area using 686 square kilometers of 3D seismic data from 2013.

Block 2B contains the A-J graben, a typical rift basin, similar to others in

which major oil accumulations have been discovered in Africa. Using more recent

3D seismic data, significant upside potential has been identified in six

prospect areas at depths of up to 1,000 metres shallower than the original well.

The next proposed exploration well, Gazania-1, will be drilled into the Gazania

and Namaqualand prospects identified on 3D seismic data.

Enquiries

Panoro Energy ASA                                       +44 203 405 1060

John Hamilton, Chief Executive Officer         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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