PEN – Drilling commenced in Block BM-S-63 offshore Brazil

Panoro Energy ASA (“PEN”, OSE ticker code), the independent oil and gas company with assets in West Africa and Brazil is pleased to announce spudding of the Canário well in the BM-S-63 (formerly SM-1036) block in the southern Santos basin offshore Brazil. The well is being drilled with Transocean’s semi-submersible drilling rig, the GSF Arctic I.

The Canário well is located offshore approximately 230 km south of the city of Santos in a water depth of approximately 200 meters. The well will be vertically drilled to a planned total depth of 4800 meters. The primary reservoir target for this well is post-salt turbiditic sandstones of the Middle Itajai-Acú formation (Itajaí Turbidites), expected to be encountered at around 3,200 meters below mean sea level. The prospect is also targeting secondary sandstones in the Upper Jureia formation (Juréia Shelf Reservoirs) and in the Lower Itajaí-Açu formation (Ilhabela 1 and Ilhabela 2 Turbidites).

The drilling operation for this well is expected to take 2-3 months. After finishing this well the rig will drill the Jandáia prospect (BM-S-71).

Panoro Energy holds a 15 % ownership in this block. The partners are Vanco Brasil Exploração e Produção de Petróleo e Gas Natural Ltda (Operator 70%) and Brasoil Round 9 Exploracáo Petrolifera Ltda (15%). Vanco will finance Panoro's 15% share of drilling costs for this exploration well.

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

Please visit www.panoroenergy.com for more information.