Panoro Energy ASA has disclosed an update in advance of its Half Year 2023 results which are scheduled for release on 24 August 2023. Information contained within this release is unaudited and may be subject to further review and amendment.
Following completion of the first three out of six planned production wells at the Hibiscus Ruche Phase I development offshore Gabon and acquisition of the 40 percent minority interest in the Tunisian business Panoro’s working interest production has recently reached record levels for the Company of up to 11,000 bopd. When all six new production wells at Hibiscus Ruche Phase I are onstream net production is expected to exceed 13,000 bopd.
The three well infill campaign due to commence in late Q4 offshore Equatorial Guinea is expected to deliver additional volume in 2024.
“We are pleased to have recently reached a record high of 11,000 bopd net to Panoro. We are making good progress towards achieving our organic output targets with the drill-bit. While Q2 revenue reflects our previously guided crude lifting schedule the cash generative potential of Panoro’s well diversified and high quality production base will be evident in H2 when the majority of our annual liftings and crude oil sales occur. We look forward to delivering strong organic growth over the remainder of 2023 and beyond,” John Hamilton, CEO of Panoro, commented.
Corporate and Financial Update
Recent group production has reached levels of up to 11,000 bopd, following the third Hibiscus well and start up of the gas lift compressor
Working interest production is expected to increase to in excess of 13,000 bopd when all six new Hibiscus Ruche Phase I wells are onstream
Average full-year working interest production guidance narrowed to 9,500 -10,500 bopd, recognising the previously announced delayed start in Gabon first oil and gas lift compression
Working interest production averaged 8,093 bopd in Q2 and 7,211 bopd in the first six months
The Company recognises revenue when liftings of its crude oil entitlement occur. As previously guided Panoro lifted and sold a limited volume of 52,830 barrels in Q2 as domestic sales in Tunisia resulting in revenue of USD 3.4 million
Revenue from oil sales in the first six months stood at USD 63.0 million, with an average realised price of $75.42 per barrel, and 835,750 barrels sold
Management expects the majority of its 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
Positive crude oil inventory of 645,000 barrels at 30 June
Cash at bank at 30 June was approximately USD 32.1 million, which includes advances of USD 17.4 million taken against high crude inventory position to smooth working capital
Amounts owing under reserve based loans at 30 June was USD 83.7 million after principal drawdown in April of USD 15.3 million, following the refinancing of the Tunisia senior secured facility previously in place into the Company’s RBL facility, in conjunction with completion of the Tunisia acquisition
Operations Update
Equatorial Guinea – Block G (Panoro 14.25%)
Q2 working interest production 3,420 bopd / H1 working interest production 3,650 bopd
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%)
Q2 working interest production 2,660 bopd / H1 working interest production 1,980 bopd
Three out of six new production wells at the Hibiscus Ruche Phase I development safely drilled, completed and put onstream:
DHIBM-3H well put onstream in early April at a gross rate of 6,000 bopd
DHIBM-4H well put onstream in mid-June at a gross rate of 6,000 bopd
DHIBM-5H well put onstream in late July at a gross rate of 6,000 bopd
Drilling operations underway on the fourth new production well, DHIBM-6H
Start up in late July of the new gas lift compressor on the BW Adolo FPSO will support production from all six existing wells at the Tortue field and once fully operational is expected to add approximately 3,000 bopd of gross production.
Total gross production at the Dussafu Marin Permit has recently been up to 30,000 bopd
Tunisia – TPS Assets (Panoro 49%)
Q2 working interest production 2,010 bopd / H1 working interest production 1,590 bopd
Completed the acquisition of the 40 percent minority interest Panoro did not own in the Tunisian business in April
Adds an estimated 2.96 million barrels of net 2P reserves (100 percent oil) and 800 to 900 bopd of net production
Recompletion of the GUE-03 well, GUE-14 well and GUE-10AST well safely completed without incident
New production opportunities include a workover campaign comprising ESP replacement and stimulation of three wells at the Cercina field (CER-1, CER-6A and CER-7) scheduled to commence in Q3
Detailed planning for development drilling campaign on the Rhemoura and Guebiba fields with operations expected to start mid 2024
Exploration
At Block S offshore Equatorial Guinea 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
At the Panoro operated Block EG-01 offshore Equatorial Guinea subsurface studies based on existing seismic data are being undertaken to further define and evaluate the prospectivity of the block
Further exploration wells at Dussafu in Gabon are also being considered, using the optional well slots under current contract
Application for an Exploration Right covering part of TCP 218 located onshore in Free State, South Africa, is currently in progress
