Panoro Energy ASA's (PEN:OSE; 1PZ:FRA) oil production for the fiscal year 2023 (FY23) was 8,471 barrels per day, which aligns with previous forecasts, noted Auctus Advisors analyst Stephane Foucaud in a February 22 research note.
Foucaud reported that the end-of-year 2023 figures for cash reserves, total debt, and cash advances were also in line with prior disclosures. He noted that the production outlook for fiscal year 2024 (FY24) had been revised to a range of 11,000-13,000 barrels per day. It was previously 11,000-14,000 barrels per day.
This downward adjustment incorporated a planned pause in offshore drilling operations in Equatorial Guinea (EG). The primary reason for narrowing the upper end of the guidance range is due to an expected delay in securing a replacement rig in EG, which pushes back some associated output.
Foucaud reported that drilling is now anticipated to resume in the late second quarter of 2024, based on management's latest projections. Despite these changes, Foucaud's existing forecast of 12,200 barrels per day production for FY24 remains unchanged.
"The most important new information is the fact that the discovered resources at Hibiscus Southarenow expected to be materially greater than initially expected," Foucaud said. After drilling the development well, Foucaud noted that analysis indicated that the structure "appears to be larger than anticipated."
"Given that Hibiscus South is being developed as a tieback to the existing infrastructure, the incremental capex and opex is minimal, meaning the value of each discovered barrel is very high," he said
Foucaude commented that Hibiscus South is anticipated to be onstream next month.
With this, Foucaud reiterated his target price of NAK47 per share.
Want to be the first to know about interesting Oil & Gas - Exploration & Production investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
Subscribe
