Panoro Energy gets USD11 million for Dussafu sale to BW Offshore

Eni

Panoro Energy has received a cash payment of USD11 million for the sale of Dussafu License offshore southern Gabon.

It would be recalled that the company had announced in April that it was divesting from Dussafu License offshore southern Gabon and that BW Offshore was the preferred buyer of the asset.

BW Offshore will also provide some working capital adjustments and will provide a non-recourse loan of up to USD 12.5 million. The company said its first-quarter update that the first oil expected in 2H2018 at an anticipated initial rate of 15,000 bopd.

Panoro Energy said the legal tussle on the Aje Field is still ongoing, with arbitration hearing anticipated during summer; certain JV partners held in contempt of UK Court Order. Third crude lifting and sale at Aje in Nigeria in March 2017, with proceeds attributed to settle cash calls post period-end. Aje-6 removed from the current drilling programme.

The company said as a result of the dispute, Pacific Bora drillship has been demobilized from the Aje field after performing workover operations on the Aje-5 well. ‘Result of Aje-5 side-track remains unknown at this time’

Mr. John Hamilton, CEO of Panoro Energy said, “We are very pleased to see Dussafu moving forward with speed, together with our new
partner BW Energy. Although the legal dispute at Aje continues, we note that some of our OML 113 joint venture partners have recently been
held in contempt of an order of the High Court of Justice of England and Wales. We will continue to take the necessary actions to protect our
interests, and in the meantime will explore all options to unlock shareholder value.”

About Panoro Energy
Panoro Energy ASA is an independent E&P company based in London and listed on the Oslo Stock Exchange with ticker PEN. The Company
holds production, exploration and development assets in West Africa, namely the Dussafu License offshore southern Gabon, and OML 113
offshore western Nigeria. In addition to discovered hydrocarbon resources and reserves, both assets also hold significant exploration
potential.

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