First Quarter Report 2012

Panoro Energy ASA ("PEN" ticker code OSE) and its subsidiaries (“Panoro Energy” or “the Company”) report EBITDA of USD 5.3 million for the first quarter 2012. Production was ramped up at the Manati field, as the maintenance and repair work on the platform risers was completed. The KUN-203, KUN-202 and KUN-201 wells in the Mengo-Kundji-Bindi project onshore Congo-Brazzaville were production tested with encouraging results. The rig to drill on blocks BM-S-63, BM-S-71 and BM-S-72 in the Santos Basin offshore Brazil is currently at the shipyard, being prepared for the upcoming exploration campaign that is expected to commence in June/July 2012.

First Quarter Highlights and Subsequent Events

• Group net gas sales averaged 3,157 BOE/day in the first quarter versus 2,811 BOE/day in the previous quarter
• Production capacity restored at all 6 wells in the Manati field
• Group EBITDA was USD 5.3 million, up from USD 2.5 million in the previous quarter
• Encouraging results from production test on wells KUN-203, KUN-202 and KUN-201 in Mengo-Kundji-Bindi, onshore Republic of Congo (Brazzaville). Completed drilling of the KUN-204 well and commenced drilling of the KUN-205 well
• The Santos Round 9 exploration campaign in on track for spud of the Sabiá prospect in June/July 2012, with the rig currently at a Rio de Janeiro shipyard for upgrades

Please find enclosed the first quarter report and the investor presentation. The presentation will be broadcasted live from Hotel Continental in Oslo from 08:30 CET today, and can be seen using the following link: http://webtv.hegnar.no/webcast.php?id=58131

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  

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