Second Quarter Report 2011

Panoro Energy ASA ("PEN" ticker code OSE) and its subsidiaries (“Panoro Energy” or “the Company”) report EBITDA of USD 3.1 million for the second quarter 2011. During the quarter, inspections and maintenance at the Manati field in Brazil have reduced production; the Company made an oil discovery in the Ruche-Marine-1 pre-salt exploration well offshore Gabon, and a letter of intent was signed for a drilling rig to drill three exploration wells offshore Brazil in 2012.

Second Quarter Highlights and Subsequent Events

• Group net gas sales averaged 2,090 BOE/day in the second quarter versus 2,477 BOE/day in the previous quarter
• Group EBITDA was USD 3.1 million, down from USD 3.2 million in the previous quarter
• Temporarily reduced production due to ongoing inspections and maintenance of platform risers at Manati
• Oil discovery in the Ruche-Marine-1 pre-salt exploration well offshore Gabon
• Signed letter of intent for drilling rig to drill three exploration wells in Brazil

Please find enclosed the second quarter report and the investor presentation. The presentation will be broadcasted live from Shippingklubben in Oslo from 08:30 CET today, and can be seen using the following link http://www.serialive.com/watch.php?id=22097

For further information please contact:

Anders Kapstad, CFO
Tel.: +47 23 01 10 01
Cell: +47 918 17 442
Email: anders.kapstad@panoroenergy.com

Jonas Gamre, Finance & Investor Relations Manager
Tel.: +47 23 01 10 02
Cell: +47 971 18 292
Email: jonas.gamre@panoroenergy.com