Panoro Energy: Operational Update
Aje Field, Offshore Nigeria
July 19, 2016 – Panoro Energy (“the Company” or “Panoro” with Oslo Ticker: PEN) is pleased to announce that the commissioning of the Front Puffin FPSO has now been completed, and the Front Puffin FPSO is on hire following the 72 hour test. Targeted stabilised production rates have not yet been achieved, due to mechanical issues and Nigerian regulatory approvals. Until the outstanding issues are resolved, which could take until the end of Q4 2016, production shall be maintained at a restricted daily rate of approximately 7,000-8,000 barrels of oil. We expect the first crude oil lifting from the Front Puffin FPSO to take place at the end of August.
In the meantime we continue to be encouraged by the performance of the reservoir to date.
Material reductions in operating costs have also been achieved at Aje, and continuing efforts are being made to secure further savings.
Laboratory assays have been delivered on Aje crude oil which show it to be as expected a high quality grade of approximately 42 degree API. Several international oil companies and trading houses have expressed interest in purchasing Aje crude.
Work continues for planning of Aje Phase 2 (additional Cenomanian oil wells) and Phase 3 (Turonian gas and condensate), and in evaluating the wider exploration potential on OML 113.
Panoro has noted Harvest Natural Resources’ recent press release of the proposed sale of its Venezuela assets. With the renewed focus on Dussafu this announcement brings, Panoros’ JV with Harvest Natural Resources is accelerating the evaluation of appraisal and development options for the block. Panoro continues to have ongoing discussions with potential farm-in partners and is examining other initiatives such as refined development plans.
John Hamilton, CEO of Panoro said: “We are very pleased with the reservoir performance at Aje and are planning the next steps to realise its full potential. At Dussafu, recent developments have reinforced our view of its significant potential, where prospects A and B have a combined P50 of 482 million barrels of gross unrisked prospective resources. Both of these prospects are within the Exclusive Exploitation Authorisation area. We are expecting to agree on a forward plan for the exciting Dussafu project in the coming months”.
For more information please contact:
Chief Executive Officer
+44 203 405 1060
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, development, and exploration assets in West Africa, namely OML 113 offshore western Nigeria and the Dussafu License offshore southern Gabon. In addition to discovered hydrocarbon resources and reserves, both assets also hold significant exploration potential. For more information, please visit the Company’s website at www.panoroenergy.com.