ANP approval to transfer block BM-S-71

Panoro Energy ASA (“PEN”, OSE ticker code), the independent oil and gas company with assets in West Africa and Brazil is pleased to announce that the Brazilian Petroleum Agency (“ANP”) has approved the transfer of a 35% interest and operatorship in exploration block BM-S-71 from Panoro Energy ASA to Vanco Brasil Exploração e Produção de Petróleo e Gas Natural Ltda, a wholly owned subsidiary of Vanco Overseas Energy Ltd (“Vanco”).  

In January 2011, Panoro Energy announced that the Company had reached agreement to farm out 35% of Panoro's 50% interest in its three shallow water exploration licenses BM-S-63 and BM-S-71 and BM-S-72. With the previously communicated ANP approval of blocks BM-S-63 and BM-S-72, the transfer of operatorship to Vanco as part of the farm-out of all three licenses is now complete.

The farm-out agreement calls for Panoro to recover its historical costs on each of the blocks which total approximately USD 15 million. Receipt of this amount is expected shortly. Furthermore, Vanco will finance Panoro's remaining 15% share of drilling costs for three exploration wells, one on each license.

The drilling campaign on these licenses is expected to start during H1-2012 comprising the drilling of the Sabiá, Canario and Jandaia prospects.

For further information, please contact:

Jonas Gamre, Finance & Investor Relations Manager
Tel: +47 23 01 10 02
Cell: +47 971 18 292
Email: jonas.gamre@panoroenergy.com