PANORO ENERGY ASA Panoro group working interest production in 2023 averaged 8,471 bopd from its well diversified and balanced portfolio, a new annual record for the Company, and is expected to continue increasing throughout the year ahead.
Consistent with its commitment to delivering sustainable shareholder returns, Panoro has today declared a Q4 2023 cash distribution of
In line with its 2024 shareholder returns framework, Panoro is targeting an overall distribution to shareholders of between
"Our strong 2023 operating and financial results are a reflection of Panoro's well diversified and high quality portfolio of producing assets in
We are continuing to make good progress towards resolving the previously communicated electrical integrity issues in
Based on our current assumptions the pause in drilling offshore
Corporate and Financial Update
Production Performance
- Average group working interest production:
- Full year 2023: 8,471 bopd (2022: 7,500 bopd)
- Q4 2023: 9,411 bopd (Q3 2023: 10,008 bopd)
- Group working interest production reached levels of 12,000 bopd in Q4 2023 when the four new Hibiscus wells drilled to date were simultaneously producing
Financial Performance
- Full year 2023 reported revenue was
USD 228.9 million (2022:USD 188.6 million ) -
Crude oil liftings in 2023 totalled 2.6 million barrels sold at an average realised price of
USD 83.2 per barrel after customary price adjustments and associated fees -
EBITDA for full year 2023 was
USD 135.1 million (2022 USD 127.2 million) and profit before tax wasUSD 74.3 million (2022:USD 60.4 million ) -
Net profit from continuing operations for 2023 was
USD 33.4 million (2022:USD 18.6 million ) -
Cash at bank at
31 December 2023 wasUSD 27.8 million , including advances taken against future oil liftings ofUSD 23.8 million - As previously communicated, a lifting of approximately 260,000 barrels net to Panoro assumed to occur in late
December 2023 was completed inJanuary 2024 resulting in proceeds of approximatelyUSD 20 million being received post year-end (will be reflected in Q1 2024 results)
- As previously communicated, a lifting of approximately 260,000 barrels net to Panoro assumed to occur in late
-
Gross debt at
31 December 2023 wasUSD 70.5 million
2024 Guidance
- Full year 2024 group working interest production is expected to average between 11,000 bopd to 13,000 bopd
- Mid-point of full year 2024 guidance represents a ~40 per cent uplift on full year 2023 group production
-
The production range is based on operator forecasts, including assumptions on planned facility maintenance, facilities uptime and current estimates for recommencement of the
Equatorial Guinea infill drilling campaign
-
Expenditure on capital and other non-recurring projects in 2024 is expected to be approximately
USD 75 million (unchanged from prior communication) - Q1 2024 group working interest production is expected to average 9,500 bopd to 10,000 bopd
- Q1 2024 aggregate liftings are expected to be approximately 750,000 barrels
- Full year 2024 aggregate liftings are expected to be approximately 3.7 million barrels based on current estimates, representing an increase of approximately 42 per cent on 2023 liftings
Shareholder distributions
- Panoro today declares a Q4 2023 cash distribution of
NOK 50 million for payment in March as a return of paid in capital, concluding the 2023 distribution cycle -
In accordance with the previously communicated 2024 shareholder returns policy the Company is targeting a distribution to shareholders of between
NOK 400 million toNOK 500 million through the 2024 cycle comprising:- A core cash distribution paid on a quarterly basis, with first declaration at Q1 2024 results in May (for payment in June)
- A combination of share buybacks and special cash distribution at the discretion of the Board
- Amounts to be weighted towards the second half of the year as production milestones are achieved
-
Cash distributions to be paid as a return of paid in capital and the Board will consider upward or downward revisions of the framework as production de-risking occurs and should oil prices be higher/lower than
USD 85 per barrel
Operations Update and Planned Activities in 2024
- 2023 full year working interest production 3,612 bopd / Q4 2023 working interest production 3,535 bopd
- The planned three-well infill drilling campaign commenced in January. The Company announced on 9 February that upon recommendation of the operator, Trident Energy, the joint venture decided to terminate the rig contract. Alternative options are being evaluated that will allow for the recommencement of the intended drilling campaign at the earliest opportunity, potentially during late Q2 subject to rig availability and terms of alternative options
- Numerous ongoing field life extension and asset integrity projects to continue throughout 2024
- 2023 full year working interest production 3,000 bopd / Q4 2023 working interest production 3,944 bopd
-
Drilling of the Hibiscus South (DHBSM-1H) development well has concluded and completion operations are underway
- The well utilised the top-hole section of the discovery well and has encountered high quality oil bearing reservoir sands in the prolific Gamba formation. Results from logging indicate scope for the Hibiscus South field to contain materially higher oil reserves than the previous estimated range of six to seven million barrels gross recoverable
- The well is expected onstream in March, representing a less than five-month lead time from discovery to first oil, further demonstrating the highly value accretive organic growth potential of the block
-
At the Hibiscus field, three out of four wells remain in production with two producing on ESPs (with encouraging performance to date under adjusted operating parameters) and one producing under natural flow without an ESP. The fourth well will be worked over in April
- During the latter part of 2023 and into 2024, a comprehensive programme was commenced in order to establish the root cause of the electrical integrity issues encountered on the four new Hibiscus wells which were drilled in 2023. The retrievable ESPs were removed, in addition to the upper completions on two wells. As a result of these activities, production in Q4 was impacted as work necessitated the wells being offline at various times
- The electrical failure root cause analysis is ongoing with the recovered ESPs sent to the manufacturer for diagnosis
- Contingency plans are in place with three conventional ESPs scheduled for imminent delivery
- The Tortue field continues to produce steadily from all six existing production wells
-
Following completion of the Hibiscus South well, the rig will undertake the following work (the order of which will be dependent on optimising production and logistical considerations):
- drilling of a side-track (DRM-3H ST-1) from the suspended Ruche development well
- drilling of an additional Hibiscus development well (DHIBM-7H)
- performing ESP workovers
- The Bourdon prospect test well (DBM-1) will be the last operation in the current campaign, providing the aforementioned activities are performed within time expectations (the current drilling campaign has been extended through July)
- Current gross Dussafu production is approximately 25,000 bopd reflecting the partial restoration of production from three of the four Hibiscus wells
- Panoro expects that gross production will rise from March onwards towards the 40,000 bopd target rate once all wells in the current campaign have been completed
- 2023 full year working interest production 1,859 bopd / Q4 2023 working interest production 1,932 bopd
- 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 Q2 2024
- Detailed planning for development drilling campaign on the Rhemoura and Guebiba fields with operations expected to start late 2024
Exploration and Appraisal Wells
Akeng Deep -
- The
Kosmos Energy operated Akeng Deep infrastructure-led exploration ("ILX") well is intended to test a play in the Albian, targeting an estimated gross mean recoverable resource of ~180 million barrels of oil in close proximity to existing infrastructure at Block G. Following termination of the rig contract, the timing of the Akeng Deep ILX well is dependent on availability of alternative options. The joint venture partners remain committed to drilling the well. Other partners in Block S are GEPetrol and Trident Energy
Bourdon -
- The Bourdon Prospect is located in a water depth of 115 metres approximately 7 kilometres to the southeast of the BW Mabomo production facility and 14 kilometres west of the BW Adolo FPSO. The Prospect has an estimated mid-case potential of 83 million barrels in place and 29 million barrels recoverable in the Gamba and Dentale formations. The partner's intention is to drill the well during the current
Gabon drilling campaign, providing that prior development activities on the block are concluded within time expectations
The company will hold a live webinar presentation at
The webinar presentation can be accessed through registering at the link below and the online event will be equipped with features to ask live questions. Joining instructions for participating online or through using local dial-in numbers will be available upon completion of registration. The webinar details are as follows:
| Date and Time: | |
| Registration: | https://attendee.gotowebinar.com/register/5986080388219510361 After registering, participants will receive a confirmation email containing information about joining the webinar. Participants can use their telephone or computer microphone and speakers (VoIP). |
Please join the event at least ten minutes before the scheduled start time.
A replay of the webinar will be available shortly after the event is finished and will remain on our website (www.panoroenergy.com) for approximately 7 days.
Enquiries
Tel: +44 203 405 1060
Email: investors@panoroenergy.com
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