The year 2022 was a record year for Panoro with revenues estimated at approximately USD 188 million. Working interest production averaged approximately 7,500 bopd. Underpinned by a strong balance sheet and conservative leverage profile the Company is well positioned for its organic production growth.

Production drilling commenced in early January at the Hibiscus Ruche Phase I development offshore Gabon on the Dussafu Marin Permit. Panoro expects its group production to increase to around 12,500 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.

• Performance Update

The 2022 Full year working interest production averaged approximately 7,500 bopd (approximate split Equatorial Guinea 59 percent, Gabon 25 percent, Tunisia 16 percent). Working interest production in Q4 2022 averaged approximately 7,000 bopd and reflects facilities maintenance and preparations for tie-in activities undertaken during the period and the full year reported revenue is expected to be approximately USD 188 million

Panoro Crude oil liftings in 2022 totalling 1.8 million barrels was sold at an average realised price of approximately USD 99 per barrel after customary price adjustments and associated fees, while the cash at bank at 31 December was approximately USD 32.6 million. The company’s gross debt at 31 December was USD 79.5 million after principal repayments of USD 18.8 million were made in the year. Resultant net debt position at 31 December was USD 46.9 million as the 2022 capital expenditure (subject to final reconciliation) stood approximately USD 65 million (including non-recurring project costs)

2023 Guidance and Outlook

Panoro full year working interest production is expected to average 9,000 bopd to 11,000 bopd in 2023, with the range being dependent on timing of the start-up of each of the new production wells at Dussafu Marin. The Q1 working interest production is expected to be 7,000 bopd to 7,500 bopd taking into account a planned shutdown during February at Dussafu Marin for final hook up and commissioning work.  Thereafter production is expected to increase progressively as the six new production wells at the Hibiscus Ruche Phase I development are drilled and brought onstream. Current group working interest production is approximately 7,300 bopd

Expenditure on capital and other non-recurring projects in 2023 is expected to be approximately USD 75 million and includes approximately USD 5 million associated with long lead items and planning for 2024 drilling activities. The majority of planned 2023 expenditure is associated with the production drilling campaign at the Hibiscus Ruche Phase I development offshore Gabon and infill drilling campaign at Block G offshore Equatorial Guinea. The inimum debt principal repayments in 2023 are approximately USD 20 million.

Panoro expects its crude liftings in Q1 to be approximately 700,000 barrels in Equatorial Guinea and Tunisia, While the anticipated lifting schedule for the remainder of 2023 is being finalised with partners and the Company will provide an update at its 2022 full year results on 22 February. Panoro expects crude liftings in 2023 will be materially greater than the volumes lifted in 2022. In accordance with its previously communicated 2023 shareholder returns policy the Company expects to declare its inaugural cash dividend at full year results on 22 February

Planned activities across the portfolio in 2023 are:

Equatorial Guinea

• Rig contracted for a three well infill drilling campaign which is expected to commence in Q4 2023
  • 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

• Drilling at the first of six planned Hibiscus Ruche Phase I production wells commenced in early January, with first oil expected during March in line with previously communicated guidance
  • Installation of flexible pipelines and risers between the BW MaBoMo production facility and the FPSO BW Adolo has been completed with final hook up and commissioning work ongoing
  • New gas lift compressor unit to support production from the six existing wells on the producing Tortue field is being installed onboard the FPSO BW Adolo with commissioning and start up of the compressor expected around the time of first oil from Hibiscus Ruche Phase I

Tunisia

• Recompletion of the GUE-10AST well on the high potential Douleb reservoir
  • Cercina workover campaign comprising ESP replacement and stimulation of three wells: CER-1; CER-6A; and CER-7
  • Detailed planning for development drilling campaign on the Rhemoura and Guebiba fields with operations expected to start at year end
  • Panoro jointly with its partner ETAP received initial approval from the Tunisian Hydrocarbons Advisory Committee for the extension of Rhemoura Concession for an additional period of 16 years. The official gazetting process is ongoing

Exploration

• Panoro does not have any exploration wells planned during 2023
  • Having reached agreement to farm into a 12 percent interest in Block S offshore Equatorial Guinea (subject to customary approvals) the partners are planning to drill the Kosmos Energy operated Akeng Deep exploration well in 2024 to test a play in the Albian, targeting an estimated gross mean resource of approximately 180 million barrels of oil equivalent in close proximity to existing infrastructure at Block G
  • Further exploration wells at Dussafu in Gabon are also being considered, using the optional well slots under current contract
  • Complete study to evaluate the helium and natural gas prospectivity of Technical Co-operation Permit 218 onshore northern Free State, South Africa

 “Panoro is entering a phase of continual drilling activity which will see at least 10 wells being drilled in Gabon and Equatorial Guinea over the next 12 to 15 months and deliver a step-change in working interest production. Our priority is to translate the strong fundamentals and cash generative potential of Panoro’s high-quality asset base into sustainable shareholder returns whilst maintaining our growth strategy and disciplined capital management. Accordingly, we expect to commence dividend payments in 2023 with Panoro’s inaugural cash dividend to be declared at full year results on 22 February and paid as per our previously communicated shareholder returns policy.” John Hamilton, CEO of Panoro, commented.