Panoro Energy declared good momentum into its operational year end and beyond. According to the third quarter operations and corporate update, the company said that the Hibiscus Ruche Phase 1 development offshore Gabon is progressing very well with production growth in sight, keeping our outlook of achieving net 12,500 bopd during 2023 firmly on track.  While the Gazania-1 exploration well result offshore South Africa is disappointing.

In Production update, the company stated that working interest production for the first nine months averaged approximately 7,700 bopd and production expected to return to in excess of 8,000 bopd level around the year end with activities across all three production assets underway

The Q3 working interest production of approximately 7,300 bopd was temporarily affected by pump replacements in both Equatorial Guinea and Tunisia though since restored.

The company’s target of achieving net 12,500 bopd during 2023 is still on track. While the total crude oil volumes lifted and sold in Q3 were 880,896 barrels at an average realised price of USD 105.5 per barrel after customary price adjustments and associated fees, resulting in proceeds to the Company of approximately USD 93 million for the quarter

The total crude oil volumes lifted and sold in the first nine months were 1,039,797 barrels at an average realised oil price of USD 105.7 per barrel after customary price adjustments and associated fees, resulting in proceeds to the Company of approximately USD 110 million for the nine months

In October, post period end, Panoro completed its scheduled lifting of 647,111 barrels in Gabon resulting in proceeds to the Company of approximately USD 59 million. This lifting brings the aggregate volume of crude oil lifted and sold by Panoro year-to-date to 1,686,908 barrels at an average realised price of USD 100.3 per barrel.

Gabon update

As reported by the Operator, Hibiscus/Ruche Phase I development offshore Gabon is progressing to plan. The BW MaBoMo production facility has been installed on site and 20 kilometres of the subsea flowline installed. Preparations are underway to commence development drilling in January with first oil expected around the end of Q1 2023

New gas lift compressor arrived in Gabon late October and is being prepared for mobilisation to the FPSO with planned installation around year end and start up during Q1 2023

In aggregate, good visibility on production growth starting Q1, accelerating through the year

Gazania-1 exploration well result

The Gazania-1 exploration well located at Block 2B offshore the Northern Cape in Orange Basin, South Africa, was safely drilled without incident to a depth of 2,360 metres. The well did not encounter commercial hydrocarbons and will now be plugged and abandoned

Panoro holds a 12.5% non-operated interest in Block 2B with its total net share of costs associated with the exploration well expected to marginally exceed the USD 6 million previously guided

Further analysis and integration of the well data will allow the JV to determine the next steps on the Block

“As previously communicated our lifting schedule significantly stepped up from July onwards with large liftings in Equatorial Guinea and Gabon in particular, combined with robust oil prices, giving Consistent with our strict financial discipline we have continued to repay debt and maintain balance sheet strength. We look forward to continue creating further shareholder value and implementing a capital return policy,” John Hamilton, CEO of Panoro, commented.