TUNISIA/ GABON: Panoro Energy Provides Operational Update
Operational Highlights
Group net production of 2,117 bopd for Q3 2020, down slightly on Q2 due to announced pump replacements during the quarter in Tunisia
Production and lifting operations maintained and largely unaffected through the crisis
Health and Safety systems and protocols proved resilient
Gabon
In Gabon, quarterly production of 15,449 bopd gross on average, slightly below last quarter’s record high, with peak production levels exceeding 20,000 bopd
At Dussafu, seismic reprocessing completed, potential for material increase in hydrocarbon volumes at Hibiscus up to three times as large
Material cost and time savings through an alternative development plan for the Hibiscus/Ruche area using jack-up rigs in place of a wellhead platform
$100 million gross in capital savings as compared to previous concept
Break-even for next development phases of approximately $25 per barrel
One crude oil lifting in the third quarter, sold at $46 per barrel with operating costs of $19.6 per barrel
Tunisia
5,000 bopd gross target achieved during October and current production steady at these levels
Tunisian quarterly production of 3,261 bopd gross on average, with production being impacted by replacement of two ESPs
Guebiba 10 side-track successful, confirmed oil in two reservoirs, on production in lower Bireno interval with highly productive Douleb to be produced in the future
Multiple workover activities performed during quarter and continuing into Q4, all completed safely and without incident
Two liftings, one international and one domestic, totalling 104,705 bbls during the quarter
Corporate Highlights
In advanced discussions for a senior secured loan facility for the funding of next phases at Dussafu
Strengthening of team with the addition of Tim O’Hanlon as Senior Advisor to the Board. Tim was a founder member of the Tullow Oil team where he spent many of the last 30 years as Vice President of Africa
Hedging strategy proving effective in period of extremely volatile and low oil prices, realising USD 3.9 million in finance income for the nine months to 30 September 2020
Outlook and Guidance
Three liftings expected in 4Q 2020 (two in Gabon, one in Tunisia), generating 35-40% of annual expected revenue
Hedging position remains strong at approximately 25% of production hedged until end 2021 at USD 55 per barrel
2020 net production guidance of 2,200-2,300 bopd
In Gabon, production from DTM-6H (drilled but not tied in) and DTM-7H (to be drilled) to be brought into production likely during 1H 2021
Production growth activity in Tunisia to continue
Dividend of PetroNor shares to Panoro shareholders (upon completion of sale of Aje)
Completion of farm in to Block 2B South Africa (subject to closing conditions)