Oslo, 24 May 2023 - Panoro Energy ASA ("Panoro" or the "Company") is pleased to
announce strong financial performance with revenue of USD 60.7 million and
EBITDA of USD 35.6 million for the first three months. In line with its
commitment to deliver sustainable shareholder returns, Panoro has today declared
a quarterly cash dividend of NOK 0.2658 per share.
Following completion of the first new production well at the Hibiscus Ruche
development offshore Gabon in early April and acquisition of the 40 percent
minority interest in the Tunisian business, also in April, Panoro's current
working interest production is strong at rates of up to 8,500 bopd.
The Company expects working interest production to increase to around 13,000
bopd when all six new Hibiscus Ruche wells are onstream. Additionally, in
Equatorial Guinea the Block G partners have a rig contracted for the next
drilling campaign which is expected to commence in Q4 2023 and comprise three
infill production wells which are expected to be brought onstream in 2024 and
deliver additional new volume.
John Hamilton, CEO of Panoro, commented:
"Our existing platform of diversified and cash generative oil production
continues to underpin the business which is apparent in our strong financial
results for the first three months. We are also making good progress towards
our organic production growth targets with our ongoing drilling programme set to
significantly increase Panoro's working interest oil production. Having paid
Panoro's inaugural quarterly cash dividend in March 2023, the Board has today
declared a quarterly cash dividend for payment in June 2023. We remain fully
committed to convert the strong fundamentals and cash generative potential of
Panoro's high-quality asset base into strong sustainable shareholder returns
whilst maintaining our growth strategy and disciplined capital management."
Corporate and Financial Update
· Working interest production for the first quarter averaged 6,320 bopd,
noting the previously communicated shut-down of the FPSO on Dussafu Marin for an
extended period to complete final tie-in work of the Hibiscus Ruche Phase I
development, and some short-term restricted production on other assets
· The Company recognises revenue when liftings of its crude oil entitlement
occur. Panoro lifted and sold 782,920 barrels in the period at an average
realised price of USD 76 per barrel after customary discounts and fees
· Revenue from oil sales for the first three months was USD 59.6 million with
total reported revenue for the period standing at USD 60.7 million. EBITDA for
the first three months was USD 35.6 million and net profit before tax of USD
24.5 million
· Quarterly cash dividend declared of NOK 0.2658 per share (representing a
cash payment to shareholders of NOK 31 million) to be paid on or around 12 June
2023
· At 31 March cash at bank stood at USD 41.5 million and gross debt USD 67.0
million after principal repayments of USD 12.9 million. Both the senior secured
loan (USD 6.8 million) and non-recourse loan (USD 0.6 million) were repaid in
full during the period. Panoro's resultant net debt position at 31 March 2023
was USD 25.5 million
· Cash flow from operations during Q1 was USD 35.2 million against capital
expenditures of USD 7.7 million
· Post period end on 24 April the Company completed its acquisition of Beender
Petroleum's minority share of Sfax Petroleum Corporation ("SPC") adding net 2P
reserves of approximately 3 million barrels of oil and net production of 800 -
900 bopd
· Full government ratification and approvals in Equatorial Guinea were
received for EG-01 and Block S respectively post period end in April
· Panoro's Annual Statement of Reserves was released post period end in April,
confirming a 92 percent organic 2P Reserve replacement year-on-year
2023 Guidance and Outlook
· Average full-year production guidance of 9,500 to 11,500 bopd is maintained
with the range being dependent on timing of the start-up of each of the new
production wells at Dussafu Marin
· Production is expected to increase to in excess of 13,000 bopd when all six
new Hibiscus Ruche Phase I wells are onstream
· Management expects the vast majority of its remaining 2023 crude oil
liftings to occur in the second half of the year
· Total crude liftings in 2023 are expected to be approximately 3 million
barrels, a materially greater volume than the 1.8 million barrels lifted in 2022
· Full-year capex guidance of USD 75 million is maintained
Operations Update
Equatorial Guinea - Block G (Panoro 14.25%)
· Company working interest production in the first three months averaged 3,871
bopd (27,164 bopd on a gross basis)
· Rig contracted for the next drilling campaign which is expected to commence
in Q4 2023 and comprise three infill production wells which are expected to be
put onstream in 2024 and deliver additional new production volumes
· Workovers including an electrical submersible pump ("ESP") conversion and
behind pipe perforations
· Ongoing field life extension and asset integrity projects including flowline
replacements
· Gas compression project at Okume
· Planning for future gas injection project to reduce routine flaring
Gabon - Dussafu Marin Permit (Panoro 17.5%)
· Company working interest production in the first three months averaged 1,284
bopd (7,340 bopd on a gross basis)
· Production from the DHIBM-3H well, the first of six Hibiscus Ruche Phase I
production wells in the current campaign, was initiated in early April and
stabilised at a gross rate of 6,000 bopd from the prolific Gamba reservoir, in
line with expectations
· Drilling of the second new production well is underway and expected onstream
in June
· Hibiscus Ruche Phase I is expected to deliver on a gross basis approximately
30,000 barrels oil per day of new production when all wells are completed and
onstream
· Commissioning of the new gas lift compressor onboard the FPSO BW Adolo is
now in process to support production from all six existing production wells at
the Tortue field
Tunisia - TPS Assets (Panoro 29.4% during Q1