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are expected to increase Panoro’s net production in the upcoming quarters, and
seismic reprocessing at Dussafu has confirmed potential for a threefold increase
in hydrocarbon volumes at the Hibiscus field offshore Gabon.
John Hamilton, CEO of Panoro, commented: “We are starting to see a return to the
production growth story at Panoro. The recent increase in Tunisia, growing total
gross production more than 25% to 5,000 bopd, is highly encouraging, and we
remain confident that we can unlock further upside potential in the TPS
concessions. In Gabon, we are expecting to resume production drilling during the
first half of 2021. Combined with revised lower cost developments at Dussafu in
Gabon, this latest progress underlines the joint-venture partners ability to
favourably optimise our low operating cost assets.”
Financial Highlights
· Gross revenue excluding hedging income from continuing operations[1] of USD
16.1 million for the first nine months of 2020 derived from five international
and five domestic oil liftings
· Eightfold increase in EBITDA in 3Q20 versus 2Q20, reflecting higher oil
prices realised despite higher operating costs linked to workovers in Tunisia
· Operating cost of around USD 17 per barrel of oil produced for the nine
months to 30 September 2020 impacted by high levels of workover activities in
Tunisia
· Net income after tax for the nine months to 30 September 2020 of USD 1.2
million, principally from realised and unrealised gains on crude oil hedges of
USD 8.6 million
· Capital expenditure of USD 10.2 million year to date (USD 1.2 million for
the third quarter), largely completing planned spending for 2020
· Cash balances of USD 15.6 million at 30 September 2020 (30 June 2020: USD 19
million) including cash held for bank guarantee
· Receivables from crude oil sales were USD 4.7 million at 30 September 2020
(30 June 2020: USD 4.3 million)
· Debt of USD 21.9 million (30 June 2020: USD 22.8 million), with USD 3.6
million having been repaid in the nine months to 30 September 2020
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)
(1) Discontinued Operations
Aje operations in Nigeria classified as discontinued operations following
divestment agreement, pending completion, and excluded from continuing
activities.
The Company will hold a live presentation of the third quarter results at 09:00
a.m. CET today, during which management will discuss the results and operations
of the period. After conclusion of the discussion, participants will be invited
to ask questions on the results report.
The results presentation can be accessed through registering at the link below
and the online access to the event will be equipped with features to ask live
questions. The audio Q&A feature will only be available for attendees who join
online. Joining instructions for participating online or through using local
dial-in numbers will be available upon completion of registration. The
presentation details are as follows:
Date and 23 November 2020, 09:00 .a.m. CET
Time:
Registration: https://attendee.gotowebinar.com/register/2438611645364671501Aft
er registering, participants will receive a confirmation email
containing information about joining the results
presentation. Participants can use their telephone or computer
microphone and speakers (VoIP).
Please join the event at least five minutes before the scheduled start time.
A replay of the third quarter results presentation will be available shortly
after the event is finished and will remain on our website
(www.panoroenergy.com) for approximately 7 days.
Enquiries
Qazi Qadeer, Chief Financial Officer
Tel: +44 203 405 1060
Email: investors@panoroenergy.com
About Panoro Energy
Panoro Energy ASA is an independent E&P company based in London and listed on
the Oslo Stock Exchange with ticker PEN. The Company holds high quality
production, exploration and development assets in Africa, namely the Dussafu
License offshore southern Gabon, OML 113 offshore western Nigeria, and the TPS
operated assets, Sfax Offshore Exploration Permit and Ras El Besh Concession,
offshore Tunisia.
For more information visit the Company’s website at www.panoroenergy.com.
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