Energy Co'.s Production Reaches 13 Mbbl/D; Two Wells Expected by Q1 2025
Research Report

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Disclosures for Auctus Advisors, Panoro Energy ASA, November 20, 2024

Panoro Energy ASA (“Panoro” or the “Company”) is a corporate client of Auctus Advisors LLP (“Auctus”). Auctus receives, and has received in the past 12 months, compensation for providing corporate broking and/or investment banking services to the Company, including the publication and dissemination of marketing material from time to time. MiFID II Disclosures This document, being paid for by a corporate issuer, is believed by Auctus to be an ‘acceptable minor non-monetary benefit’ as set out in Article 12 (3) of the Commission Delegated Act C(2016) 2031 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. It is produced solely in support of our corporate broking and corporate finance business. Auctus does not offer a secondary execution service in the UK. This note is a marketing communication and NOT independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and this note is NOT subject to the prohibition on dealing ahead of the dissemination of investment research. Author The research analyst who prepared this research report was Stephane Foucaud, a partner of Auctus. Not an offer to buy or sell Under no circumstances is this note to be construed to be an offer to buy or sell or deal in any security and/or derivative instruments. It is not an invitation or an inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000. Note prepared in good faith and in reliance on publicly available information Comments made in this note have been arrived at in good faith and are based, at least in part, on current public information that Auctus considers reliable, but which it does not represent to be accurate or complete, and it should not be relied on as such. The information, opinions, forecasts and estimates contained in this document are current as of the date of this document and are subject to change without prior notification. No representation or warranty either actual or implied is made as to the accuracy, precision, completeness or correctness of the statements, opinions and judgements contained in this document. Auctus’ and related interests The persons who produced this note may be partners, employees and/or associates of Auctus. Auctus and/or its employees and/or partners and associates may or may not hold shares, warrants, options, other derivative instruments or other financial interests in the Company and reserve the right to acquire, hold or dispose of such positions in the future and without prior notification to the Company or any other person. Information purposes only This document is intended to be for background information purposes only and should be treated as such. This note is furnished on the basis and understanding that Auctus is under no responsibility or liability whatsoever in respect thereof, whether to the Company or any other person. Investment Risk Warning The value of any potential investment made in relation to companies mentioned in this document may rise or fall and sums realised may be less than those originally invested. Any reference to past performance should not be construed as being a guide to future performance. Investment in small companies, and especially upstream oil & gas companies, carries a high degree of risk and investment in the companies or commodities mentioned in this document may be affected by related currency variations. Changes in the pricing of related currencies and or commodities mentioned in this document may have an adverse effect on the value, price or income of the investment.

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Auctus Advisors analyst Stephane Foucaud, in a research report published on November 20, 2024, maintained his target price of NOK51.00 on Panoro Energy ASA (PEN:OSE; 1PZ:FRA).

The report highlights increased production and upcoming exploration catalysts.

Foucaud noted recent production growth, stating, "Since last week, WI production has increased from 12.5 mbbl/d to 13 mbbl/d." He highlighted strong performance in Gabon, where "gross production continues to be ~40 mbbl/d" with potential for FPSO capacity to increase by 10% to 44 mbbl/d.

Regarding Equatorial Guinea operations, the analyst noted that "gross production in EG stands at 29 mbbl/d" and the second infill well "could take overall gross production in EG to 35 mbbl/d," potentially adding "~800 bbl/d net to Panoro's 14.25% WI."

The analyst emphasized strong cash flow prospects, stating, "With capex of only ~US$40 mm in 2025, we continue to forecast free cash flow of ~ US$120 mm in 2025." He added that "the company's financials will be much more resilient to lower oil prices."

Foucaud highlighted upcoming catalysts, including "results of the Akeng Deep well in EG (180 mmbbl - Panoro WI: 12%) with an unrisked NAV of ~NOK15 per share expected by YE24" and the Bourbon prospect in Gabon planned for drilling in 1Q25.

Auctus Advisors' valuation is based on NAV, with "Core NAV and ReNAV are respectively NOK32 per share and NOK50.5 per share."

The share price at the time of the report of NOK27.00 represents a potential return of approximately 89% to the analyst's NOK51.00 target price.