Panoro Energy – First Quarter 2023 Trading and Financial Update

Oslo, 24 May 2023 – Panoro Energy ASA (“Panoro” or the “Company”) is pleased to announce strong financial performance with revenue of USD 60.7 million and EBITDA of USD 35.6 million for the first three months. In line with its commitment to deliver sustainable shareholder returns, Panoro has today declared a quarterly cash dividend of NOK 0.2658 per share.

Following completion of the first new production well at the Hibiscus Ruche development offshore Gabon in early April and acquisition of the 40 percent minority interest in the Tunisian business, also in April, Panoro’s current working interest production is strong at rates of up to 8,500 bopd.

The Company expects working interest production to increase to around 13,000 bopd when all six new Hibiscus Ruche wells are onstream. Additionally, in Equatorial Guinea the Block G partners have a rig contracted for the next drilling campaign which is expected to commence in Q4 2023 and comprise three infill production wells which are expected to be brought onstream in 2024 and deliver additional new volume.

John Hamilton, CEO of Panoro, commented:

“Our existing platform of diversified and cash generative oil production continues to underpin the business which is apparent in our strong financial results for the first three months.  We are also making good progress towards our organic production growth targets with our ongoing drilling programme set to significantly increase Panoro’s working interest oil production. Having paid Panoro’s inaugural quarterly cash dividend in March 2023, the Board has today declared a quarterly cash dividend for payment in June 2023. We remain fully committed to convert the strong fundamentals and cash generative potential of Panoro’s high-quality asset base into strong sustainable shareholder returns whilst maintaining our growth strategy and disciplined capital management.” 

Corporate and Financial Update

• Working interest production for the first quarter averaged 6,320 bopd, noting the previously communicated shut-down of the FPSO on Dussafu Marin for an extended period to complete final tie-in work of the Hibiscus Ruche Phase I development, and some short-term restricted production on other assets
• The Company recognises revenue when liftings of its crude oil entitlement occur. Panoro lifted and sold 782,920 barrels in the period at an average realised price of USD 76 per barrel after customary discounts and fees
• Revenue from oil sales for the first three months was USD 59.6 million with total reported revenue for the period standing at USD 60.7 million. EBITDA for the first three months was USD 35.6 million and net profit before tax of USD 24.5 million
• Quarterly cash dividend declared of NOK 0.2658 per share (representing a cash payment to shareholders of NOK 31 million) to be paid on or around 12 June 2023
• At 31 March cash at bank stood at USD 41.5 million and gross debt USD 67.0 million after principal repayments of USD 12.9 million. Both the senior secured loan (USD 6.8 million) and non-recourse loan (USD 0.6 million) were repaid in full during the period. Panoro’s resultant net debt position at 31 March 2023 was USD 25.5 million
• Cash flow from operations during Q1 was USD 35.2 million against capital expenditures of USD 7.7 million
• Post period end on 24 April the Company completed its acquisition of Beender Petroleum’s minority share of Sfax Petroleum Corporation (“SPC”) adding net 2P reserves of approximately 3 million barrels of oil and net production of 800 - 900 bopd
• Full government ratification and approvals in Equatorial Guinea were received for EG-01 and Block S respectively post period end in April
• Panoro’s Annual Statement of Reserves was released post period end in April, confirming a 92 percent organic 2P Reserve replacement year-on-year

2023 Guidance and Outlook

• Average full-year production guidance of 9,500 to 11,500 bopd is maintained with the range being dependent on timing of the start-up of each of the new production wells at Dussafu Marin
• Production is expected to increase to in excess of 13,000 bopd when all six new Hibiscus Ruche Phase I wells are onstream
• Management expects the vast majority of its remaining 2023 crude oil liftings to occur in the second half of the year
• Total crude liftings in 2023 are expected to be approximately 3 million barrels, a materially greater volume than the 1.8 million barrels lifted in 2022
• Full-year capex guidance of USD 75 million is maintained

Operations Update

Equatorial Guinea – Block G (Panoro 14.25%)

• Company working interest production in the first three months averaged 3,871 bopd (27,164 bopd on a gross basis)
• Rig contracted for the next drilling campaign which is expected to commence in Q4 2023 and comprise three infill production wells which are expected to be put onstream in 2024 and deliver additional new production volumes
• Workovers including an electrical submersible pump (“ESP”) conversion and behind pipe perforations
• Ongoing field life extension and asset integrity projects including flowline replacements
• Gas compression project at Okume
• Planning for future gas injection project to reduce routine flaring

Gabon – Dussafu Marin Permit (Panoro 17.5%)

• Company working interest production in the first three months averaged 1,284 bopd (7,340 bopd on a gross basis)
• Production from the DHIBM-3H well, the first of six Hibiscus Ruche Phase I production wells in the current campaign, was initiated in early April and stabilised at a gross rate of 6,000 bopd from the prolific Gamba reservoir, in line with expectations
• Drilling of the second new production well is underway and expected onstream in June
• Hibiscus Ruche Phase I is expected to deliver on a gross basis approximately 30,000 barrels oil per day of new production when all wells are completed and onstream
• Commissioning of the new gas lift compressor onboard the FPSO BW Adolo is now in process to support production from all six existing production wells at the Tortue field

Tunisia – TPS Assets (Panoro 29.4% during Q1; 49% post acquisition of minority interest in SPC)

• Company working interest production in the first three months averaged 1,164 bopd (3,960 bopd on a gross basis)
• Recompletion of the GUE-03 well, GUE-14 well and GUE-10AST well safely completed without incident
• New production opportunities include a workover campaign comprising ESP replacement and stimulation of three wells at the Cercina field (CER-1, CER-6A and CER-7) scheduled to commence in Q3
• Detailed planning for development drilling campaign on the Rhemoura and Guebiba fields with operations expected to start at year end

Exploration

• Panoro does not have any exploration wells planned during 2023
• At Block S offshore Equatorial Guinea the partners are planning to drill the Kosmos Energy operated Akeng Deep exploration well in 2024 to test a play in the Albian, targeting an estimated gross mean resource of approximately 180 million barrels of oil equivalent in close proximity to existing infrastructure at Block G
• In February Panoro was awarded a 56 percent operated interest in exploration Block EG-01 offshore Equatorial Guinea. During the initial period of three years Panoro and partners will conduct subsurface studies based on existing seismic data to further define and evaluate the prospectivity of the block
• Further exploration wells at Dussafu in Gabon are also being considered, using the optional well slots under current contract
• Completing study to evaluate the helium and natural gas prospectivity of Technical Co-operation Permit 218 onshore northern Free State, South Africa

Live Presentation Webcast Dial in Details

The company will hold a live webinar presentation at 09:00 a.m. CEST today, during which management will discuss the results and operations, followed by a Q&A session.

The webinar presentation can be accessed through registering at the link below and the online event will be equipped with features to ask live questions. Joining instructions for participating online or through using local dial-in numbers will be available upon completion of registration. The webinar details are as follows:

Please join the event at least ten minutes before the scheduled start time.

A replay of the webinar will be available shortly after the event is finished and will remain on our website (www.panoroenergy.com) for approximately 7 days.

Enquiries

Qazi Qadeer, Chief Financial Officer
Tel: +44 203 405 1060
Email: investors@panoroenergy.com

About Panoro Energy

Panoro Energy ASA is an independent exploration and production company based in London and listed on the main board of the Oslo Stock Exchange with the ticker PEN. Panoro holds production, exploration and development assets in Africa, namely interests in Block-G, Block S and Block EG-01 offshore Equatorial Guinea, the Dussafu Marin License offshore southern Gabon, the TPS operated assets, Sfax Offshore Exploration Permit and Ras El Besh Concession, offshore Tunisia, and interests in offshore exploration Block 2B and onshore Technical Co-operation Permit 218 in South Africa.

Visit us at www.panoroenergy.com.

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