Rig contract signed for drilling offshore Brazil

Panoro Energy ASA ("PEN", OSE ticker code), the independent oil and gas company with assets in West Africa and Brazil, has on behalf of the partnership signed a rig contract with a subsidiary of Transocean for the GSF Arctic I semi-submersible drilling rig to drill three wells on blocks BM-S-63 (formerly SM-1036), BM-S-71 (formerly SM-1035) and BM-S-72 (formerly SM-1100), in the Santos Basin offshore Brazil.

The GSF Arctic I semi-submersible rig is currently operating in Brazil and is expected to be available to commence drilling of the Sabia, Canario and Jandaia prospects in Q1-2012. Panoro Energy is fully carried on these three exploration wells.

In January 2011, Panoro Energy announced an agreement to farm out 35% of Panoro's 50% working interest in blocks BM-S-63, BM-S-71 and BM-S-72 in the Santos Basin offshore Brazil to Vanco Brasil Exploração e Produção de Petróleo e Gas Natural Ltda, a wholly owned Subsidiary of Vanco Overseas Energy Ltd (“Vanco”). Vanco will assume operatorship upon receiving approval of the transaction by the Brazilian National Petroleum Agency (“ANP”) and will hold 70% working interest in the three blocks. Upon ANP approval, Panoro Energy will hold a 15% working interest in the blocks.

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