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Gross production at the Dussafu Marin Permit offshore Gabon has reached targeted
levels of over 40,000 bopd with Equatorial Guinea also making an increased
contribution following the successfully concluded infill drilling campaign.
Financial performance is in line with expectations, and reflects the Company’s
previously communicated crude oil lifting schedule whereby approximately 40 per
cent of all 2024 liftings will occur in Q4.
Drilling has commenced at the Akeng Deep infrastructure led exploration (“ILX”)
well offshore Equatorial Guinea with the Bourdon ILX well offshore Gabon to be
drilled in early 2025. These ILX wells represent exciting organic growth
catalysts with potential to add material value for modest financial exposure if
successful.
John Hamilton, CEO of Panoro, commented:
"I am delighted to report that we have achieved our target production rate at
both asset and group levels, ahead of time. These important milestones start to
demonstrate the underlying developed production capacity across our high quality
and diversified production assets. With further wells due onstream over the
remainder of Q4, Panoro will further expand and diversify its producing well
inventory which provides us with scope to sustain higher production capacity for
an extended period of time.
With approximately 40 per cent of 2024 liftings occurring in Q4 we expect full
-year EBITDA to come in at around the USD 150 million level assuming an average
oil price of USD 70 per barrel for remaining liftings, pointing towards 2024
being another year of record financial performance for Panoro.
Panoro’s outlook is one of higher production, decreasing capital expenditure,
strong free cash flow generation translating into meaningful shareholder
returns. With drilling now underway at the high-impact Akeng Deep ILX well on
Block S offshore Equatorial Guinea, to be followed by the Bourdon ILX well at
Dussafu offshore Gabon in early 2025, we have an exciting organic growth
pipeline of activity."
Production Update
· Group working interest production target of over 13,000 bopd by year-end has
been reached ahead of time
· In Gabon, gross production at Dussafu has reached over 40,000 bopd with
production from three wells yet to be brought onstream
· Scope exists for FPSO nameplate capacity of 40,000 bopd to be exceeded by
approximately 10 per cent
· In Equatorial Guinea, the first infill well at the Ceiba field was
successfully put onstream at an initial rate in excess of 5,000 bopd, with one
further infill well at the Okume Complex now completed and starting up
production
· Group working interest production for Q3 and the first nine months was:
Average W.I. production - bopd Q3 2024 9M 2024
Equatorial Guinea 3,268 3,401
Gabon 4,798 4,286
Tunisia 1,335 1,557
Total 9,401 9,244
· Full year 2024 working interest production is expected to average
approximately 10,000 bopd after adjusting for the later start-up of the new
infill wells in Equatorial Guinea during Q4
Crude Oil Liftings
· Crude oil volumes lifted and sold in Q3 and the first nine months were:
Q3 2024 9M 2024
Volumes lifted 397,652 barrels 2,079,546 barrels
Average realised price after USD 80.21 per barrel USD 80.36 per barrel
adjustments and customary
fees
Proceeds USD 31.9 million USD 167.1 million
· In Q4 to date Panoro has completed aggregate scheduled liftings of 351,067
barrels (which included a Tunisian lifting of 171,498 barrels previously
expected to occur in late Q3) at an average realised oil price of USD 73.27 per
barrel
· Full-year 2024 liftings are expected to be approximately 3.5 million barrels
(unchanged) with approximately 1.4 million barrels lifted / to be lifted in Q4
(approximately 40 per cent of annual volume lifted in Q4)
· The Company has hedges in place covering 490,000 barrels of remaining Q4
liftings at an average floor price of USD 70.9 per barrel through a mix of
collars and swaps
Financial Update
· Reported revenue in Q3 was USD 36 million (Q2: USD 73.9 million)
· Q3 EBITDA was USD 23.7 million (Q2: USD 39.1 million) with profit before tax
of USD 4.3 million (Q2: USD 21.3 million) and net profit for the period of USD
0.3 million (Q2: 12.1 million)
· Reported revenue for the first nine months was USD 178.8 million (9M 2023:
USD 173.5 million)
· EBITDA for the first nine months was USD 101.4 million (9M 2023: USD 103.7
million) with profit before tax of USD 46.6 million (9M 2023: USD 61.2 million)
and net profit of USD 24.4 million (9M 2023: 28.8 million)
· Based on barrels already lifted and sold and scheduled remaining liftings in
Q4 the Company expects EBITDA for full year 2024 will be approximately USD 150
million (assuming an average price realisation of USD 70 per barrel for
remaining 2024 liftings)
· Cash at bank at 30 September was USD 18.7 million which includes advances
taken against future oil liftings of USD 10.4 million
· The amount owing under the Company’s RBL facility at 30 September 2024 was
USD 72.8 million which included USD 2.4 million accrued interest which was paid
in early October (excluding accrued interest the amount owing at 30 September
2024 was USD 70.5 million)
· As previously communicated there has been upwards pressure on the Company’s
full-year capital expenditure guidance of USD 75 million, now estimated at
approximately USD 95 million primarily due to the amended drilling programs in
both Equatorial Guinea and Gabon:
· Note that capital expenditure at producing assets is cost recoverable
under the terms of Panoro’s production sharing contracts and tax provisions
· The rig extension and expanded drilling campaign offshore Gabon has
resulted in a total of eight new production wells (compared to six wells
originally planned) and a gross 2P reserve addition of 23.1 million barrels from
new discoveries made with E&A pilot wells also added into the drilling programme
· The rescheduled infill drilling campaign offshore Equatorial Guinea has
resulted in excess capital expenditure
· Lower than expected spend in Tunisia partially offsetting the above
· Preliminary expectations for group capital expenditure in 2025 are unchanged
at approximately USD 40 million
· Post period end in October the Company made use of additional capacity in
its lending facility of an additional USD 12 million to provide additional short
-term working capital during this period of heavy development activity
Shareholder returns
· Panoro today declares a Q3 2024 cash distribution of NOK 50 million to be
paid in December as a return of paid in capital
· Under the share buy-back programme announced on 23 May 2024 (of up to NOK
100 million) the Company, as at close of business on 15 November, had purchased
a total of 1,281,500 of its own shares at a weighted average price of NOK
31.8821 per share, corresponding to 1.10 per cent of Panoro’s share capital
· Panoro remains committed to delivering regular and sustainable shareholder
returns in line with its previously communicated 2024 shareholder returns policy
Production Operations Update
Equatorial Guinea - Block G (Panoro 14.25 per cent)
· The C-45 and OF-19 infill wells were drilled with the Noble Venturer drill
ship and both encountered good quality oil saturated reservoir sands in un-swept
zones of the Ceiba field and Okume Complex respectively
· The C-45 infill was put onstream on 1 November at an initial gross rate in
excess of 5,000 bopd. The OF-19 infill well is now starting up production as
planned
· Current gross production at Block G following start-up of the C-45 well is
approximately 29,000 bopd
· The Noble Venturer is now drilling the Kosmos Energy operated Akeng Deep ILX
well on the adjacent Block S which is the final operation of the current
drilling campaign
Gabon - Dussafu Marin Permit (Panoro 17.5 per cent)
· Gross production averaged 27,417 bopd in Q3, the highest quarterly rate
achieved since production commenced on the block in 2018
· Following completion and start-up of the DHBSM-2H well at the Hibiscus South
field in July and DHIBM-7H well at the Hibiscus field in October, gross
production at Dussafu has increased to current rates of 40,000 bopd from five
out of the eight wells drilled in the current campaign in addition to the six
pre-existing production wells at the Tortue field
· A workover and ESP change-out of the DHIBM-4H well on the Hibiscus field was
successfully completed in early November with production now being re-instated
from the well
· Three further workovers for ESP installation are planned during Q4 2024 and
upon conclusion of this activity all eight production wells drilled in the
current campaign will have conventional ESP systems installed
· The Bourdon prospect test well (DBM-1) will be the last rig operation under
the current contract in early 2025
Tunisia - TPS Assets (Panoro 49.0 per cent)
· New production opportunities include a workover campaign comprising ESP
replacement and well stimulations
· Detailed planning for development drilling campaign on the Rhemoura and
Guebiba fields
Exploration and Appraisal Activities
ILX wells
Equatorial Guinea - Akeng Deep ILX well, Block S (Panoro 12.0 per cent)
· The Noble Venturer drill ship has commenced drilling of the Kosmos Energy
operated Akeng Deep ILX well (S-6) in Block S with results expected in December.
· The S-6 well is intended to test a play in the Albian, targeting an
estimated gross mean resource of approximately 180 million barrels of oil in
close proximity to existing infrastructure at Block G
· Other partners in Block S are GEPetrol and Trident Energy
· A successful outcome at Akeng Deep can have a positive read across to the
adjacent Panoro operated Block EG-01 where Panoro has a 56 per cent interest and
is conducting subsurface studies based on existing 3D seismic data. The seismic
data re-processing project for EG-01 is proceeding to plan and will conclude
during Q4
Gabon - Bourdon ILX well, Dussafu Marin (Panoro: 17.5 per cent)
· The Bourdon prospect test well, DBM-1, is planned to be drilled in early
2025
· 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 Bourdon Prospect has an estimated mid-case potential of 83
million barrels in place and 29 million barrels recoverable in the Gamba and
Dentale formations
Portfolio expansion
Equatorial Guinea - PSC signed for Block EG-23 (Panoro: 80.0 per cent, operator)
· Located offshore north of Bioko Island and adjacent to the producing Alba
gas and condensate field. 19 wells have been drilled to date resulting in seven
hydrocarbon discoveries, some of which have been tested
· Based on existing data, the Ministry of Mines and Hydrocarbons estimates
Block EG-23 holds gross contingent resources of approximately 104 million
barrels of oil and condensate and 215 billion cubic feet of gas
· Initial period of three years to conduct subsurface studies based on
existing seismic. Following this, the partners will have the option to enter
into a further two-year period, during which they will undertake to drill an
exploration well. Partnered with GEPetrol (20 per cent)
Gabon - PSCs signed for Niosi and Guduma blocks (Panoro: 25.0 per cent)
· Adjacent to the Company’s producing Dussafu Marin Permit and the producing
Etame Marin Permit which is operated by VAALCO Energy
· The PSC covering the Niosi block has an initial exploration period of five
years with a work commitment of new 3D seismic data acquisition and one well.
The PSC covering the Guduma block has an initial exploration period of three
years with a work commitment of geological and geophysical studies. Both blocks
have an option to extend the exploration period and enter a second phase with an
additional well commitment
· Partners in the Niosi and Guduma blocks are BW Energy (37.5 per cent and
operator) and VAALCO Energy (37.5 per cent).
Webinar Presentation
The company will hold a live webinar presentation at 09:00 a.m. CEST today,
Wednesday 20 November 2023, during which management will discuss the results and
operations followed by a Q&A session.
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 |20 November 2024, 09:00 .a.m. CEST |
|Time: | |
±------------±--------------------------------------------------------------+
|Registration:|https://attendee.gotowebinar.com/register/5951280850972545113 |
| | |
| |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
Qazi Qadeer, Chief Financial Officer
Tel: +44203 405 1060
Email:investors@panoroenergy.com
About Panoro Energy
Panoro Energy ASA is an independent exploration and production company based in
London and listed on the main board of the Oslo Stock Exchange with the ticker
PEN. Panoro holds production, exploration and development assets in Africa,
namely interests in Block-G, Block S, Block EG-01 and Block EG-23 offshore
Equatorial Guinea, the Dussafu Marin, Niosi Marin and Guduma Marin blocks
offshore southern Gabon, the TPS operated assets, Sfax Offshore Exploration
Permit and Ras El Besh Concession, offshore Tunisia, and onshore Exploration
Right 376 in South Africa.
Visit us at www.panoroenergy.com.
Follow us on LinkedIn (Panoro Energy | LinkedIn)
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