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

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.com