Third Quarter Report 2011

Panoro Energy ASA ("PEN" ticker code OSE) and its subsidiaries (“Panoro Energy” or “the Company”) report EBITDA of USD 2.3 million for the third quarter 2011. During the quarter, maintenance and repair work continued on the platform risers at the Manati field, oil was discovered at the Ruche-Marine-1 pre-salt exploration well, drilling commenced in Mengo-Kundji-Bindi (MKB) and, on behalf of the partnership, the Company signed a rig contract for drilling of three high-impact exploration wells in the Santos basin.

Third Quarter Highlights and Subsequent Events

• Group net gas sales averaged 2,517 BOE/day in the third quarter versus 2,090 BOE/day in the previous quarter
• Group EBITDA was USD 2.3 million, down from USD 3.1 million in the previous quarter
• Production at Manati remains temporarily reduced due to inspections and repairs of platform risers
• Oil discovery in the Ruche-Marine-1 pre-salt exploration well offshore Gabon
• Completed one well in Mengo-Kundji-Bindi, onshore Republic of Congo (Brazzaville), drilling of second well ongoing
• Rig contract signed for drilling of three high-impact exploration wells in the Santos basin, offshore Brazil

Please find enclosed the third 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://webtv.hegnar.no/webcast.php?id=34883.

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