Panoro Energy today announced the release of its 2022 Annual Statement of Reserves (the “ASR”). 

Panoro achieved an organic reserve replacement ratio of 92 percent in 2022. Consequently, the Company’s net working interest 2P reserves as of 31 December 2022 stood at 35.61 million barrels of oil (“MMbbls”), materially unchanged from the 35.82 MMbbls reported at end 2021. 

Volumes stated in the ASR do not reflect the increase in reserves arising from the acquisition by Panoro of a minority share in its Tunisian business which occurred after the reserves evaluation date and is estimated by management to add a further 2.96 MMbbls of 2P reserves. 

Highlights:

After taking account of 2022 production of 2.8 MMbbls the total net working interest reserves for Panoro expressed in MMbbls as of 31 December 2022 were:

• Proved (1P) reserves of 23.41 MMbbls (31 December 2021: 23.5 MMbbls)
• Proved + Probable (2P) reserves of 35.61 MMbbls (31 December 2021: 35.82 MMbbls)
• Proved + Probable + Possible (3P) reserves of 48.65 MMbbls (31 December 2021: 47.45 MMbbls)

Panoro’s 2P reserves at 31 December 2022 reflect an organic reserve addition of 2.7 MMbbls primarily as a result of the material time extension of the Block G production sharing contract offshore Equatorial Guinea to end 2040, covering both the producing Ceiba and Okume Complex fields, and also a minor 0.1 MMbbls downward revision of previous estimates. This represents a 92 percent reserve replacement ratio of volumes produced during the year. 

In addition to stated reserves Panoro also has a 2C contingent resource base of 23.9 MMbbls.

Acquisition by Panoro of a Minority Share in its Tunisian Business Post ASR Date

On 18 April Panoro announced that it had agreed to acquire the outstanding 40 percent minority shareholding in its Tunisian business Sfax Petroleum Corporation AS (“SPC”) which, through its subsidiaries, indirectly owns a 49 percent interest in the producing TPS Assets and an 87.5 percent interest in the Sfax Offshore Exploration Permit (the “Acquisition”). The Acquisition completed on 24 April 2023. Panoro’s ownership of SPC has therefore increased to 100 percent (49 percent interest in the TPS Assets and 87.5 percent interest in Sfax Offshore Exploration Permit) and SPC has consequently become a fully owned subsidiary of Panoro.

On a pro forma basis as of 31 December 2022 management estimates that the acquisition has added the following net working interest reserves for Panoro:

• Proved (1P) reserves of 2.06 MMbbls
• Proved + Probable (2P) reserves of 2.96 MMbbls
• Proved + Probable + Possible (3P) reserves of 3.81 MMbbls

Based on the mid-point of 2023 group production guidance (set at 9,500 to 11,500 bopd post the Acquisition) the Company’s proforma 2P reserves/production (“R/P”) ratio is 10 years. Taking into account 2C contingent resources Panoro’s proforma R/P ratio is over 16 years.