Q3-2011 Manati production update

Panoro Energy ASA ("PEN", OSE ticker code), the independent oil and gas company with assets in West Africa and Brazil, is pleased to announce production volumes from the Manati field in Brazil for the third quarter 2011.

Natural gas production from the Manati field averaged 4.17 MMm3/day (2,625 boe/day net to PEN) in the third quarter 2011. This represents an increase of approximately 20 percent from the second quarter 2011 and a decline of approximately 37 percent compared to the third quarter 2010.

The field is currently producing from three out of the six wells, due to maintenance and repair work on the platform risers, with the delay in returning to full production relating to logistics issues. These operations continue in the fourth quarter and involve exchange of certain parts of riser pipe sections, installation of new sub-sea connectors, and further inspection activities. The operator expects a gradual return to full production capacity by year end, pending the outcome of new inspection of the presently producing risers.

As in earlier periods, reported sales volumes in our financial statements will be adjusted for retainage (usage, line loss and stripping of condensate), and have historically been approximately 6 percent below produced volumes.

Panoro Energy ASA holds its 10 percent ownership in the Manati gas field through its Brazilian subsidiary Rio das Contas.

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   

Please visit www.panoroenergy.com for more information.