Operational Update -Mengo-Kundji-Bindi (MKB), Republic of Congo (Brazzaville)

6/6/2012 11:43 AM EST

Panoro Energy ASA ("PEN", OSE ticker code), the independent oil and gas
company with assets in West Africa and Brazil is pleased to provide an
update on the ongoing operations in Mengo-Kundji-Bindi ("MKB"), Republic
of Congo (Brazzaville).

The KUN-204 well was drilled during Q2 2012 as part of the six well
Kundji pilot program and the logging results are now available. The well
was directionally drilled to a location 640 meters North East of the
Kundji-200 drilling platform and encountered the top reservoir of the
Kundji field on prognosis at 1548 meters (1253 meters TVDSS). The well
was drilled to a final measured depth of 2001 meters (1709 meters TVDSS)
before running logs and installing a 7" casing across the reservoir. The
logs confirm that the reservoir is oil-saturated over a gross vertical
interval of 158 meters with a net oil pay of 49 meters. A further 27
meters of Mengo sandstone was encountered with lower resistivities and
this zone is assumed to be water bearing, consistent with the results of
the KUN-202 and KUN-203 wells.
The drilling of the KUN-205 well has also progressed according to plan
targeting a location 950m North by North West of the Kundji 200
platform. The well was drilled to a final measured depth of 2300 meters
(1730 meters TVDSS), before running logs and installing a 7" casing
across the reservoir. Log results will be released in due course.

The rig has now been moved to the final rig slot and the KUN-206 well
has been spudded. The KUN-206 well is targeting a location 1400 meters
South East of the Kundji 200 platform. When drilling of KUN-206 has
reached final depth, the three wells KUN 204, 205 and 206 will be
completed, fracked and production tested.

Following the individual production tests previously reported, the KUN
-201, 202 and 203 wells have been put on limited commingled production
through temporary production equipment. Production from these wells as
well as the production from the KUN-4bis and KUN-5 wells is currently
being trucked to the Coraf refinery near Pointe Noire.

CEO Kjetil Solbrække commented, "We are very pleased with operational
progress on this asset and now expect the pilot program to be completed
over the summer. Given the positive results to date we expect activity
to increase over the next few years as the joint venture taps into this
enormous hydrocarbon resource".

The MKB permit is a 700 km2 license onshore in the Republic of Congo.
The Mengo, Kundji and Bindi fields contain light (32° API) oil in low
permeability Lower Cretaceous sandstone reservoirs and had a total of
six producing wells drilled by Elf in the 1980's and 1990's.  The permit
was reissued to Société Nationale des Pétroles du Congo ("SNPC") and
partners in 2009.  Panoro Energy holds 20% in the license through its
subsidiary company Prevail Energy Congo that is currently being marketed
through First Energy Capital.

For further information, please contact:

Carl Peter Berg, VP Commercial and Investor Relations
Tel: +55 21 3078 7472
Cell: +55 21 8541 1907
Email: carl.peter.berg@panoroenergy.