First Quarter Report 2011

Panoro Energy ASA ("PEN" ticker code OSE) and its subsidiaries (“Panoro Energy” or “the Company”) report EBITDA of USD 3.2 million for the first quarter. During the quarter, the Manati field in Brazil has been undergoing inspections and maintenance, causing a temporary decline in production capacity; development plans were submitted for the BS-3 area in Brazil; the Company signed a farm-down agreement for the exploration assets in the Santos Basin in Brazil for a consideration of USD 15 million in addition to financing for the drilling of three high impact exploration wells; and, finally, the Company successfully raised NOK 550 million in a share issue in February.

First Quarter Highlights and Subsequent Events

• Group net gas sales averaged 2,477 BOE/day in the first quarter
• Group EBITDA was 3.2 million, down from USD 5.3 million in the previous quarter
• Temporary reduced production during inspection and maintenance of platform risers at Manati
• Operator submitted new development plans for BS-3 in Brazil in January
• Signed a farm-down agreement for three exploration blocks in Brazil in January, for a consideration of USD 15 million plus carried drilling of three deep high impact wells
• Commenced drilling of Ruche-Marine-1 prospect offshore Gabon in April
• Raised approximately NOK 550 million through share issue at NOK 7.80 per share in February

Please find enclosed the first quarter report and the investor presentation. The presentation will be broadcasted live from Shippingklubben in Oslo from 08:30 CET today, and can be seen using the following link http://www.serialive.com/watch.php?id=13830

For further information please contact:

Anders Kapstad, CFO
Tel.: +47 23 01 10 01
Cell: +47 918 17 442
Email: anders.kapstad@panoroenergy.com  

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