Panoro Energy targets 20,000 bpd after offshore Equatorial Guinea acquisition expansion

Panoro Energy ASA (OSE:PEN) said first-quarter 2026 performance was broadly in line with expectations as the company advanced a transformational acquisition offshore Equatorial Guinea and positioned itself for a substantial increase in production and reserves over the next two years.

The Oslo-listed producer said group production averaged around 15,000 barrels per day (bpd) on a pro forma basis during the quarter, while updated reserves confirmed a pro forma 2P reserve base of approximately 84mn barrels and total 2P plus 2C resources of 169mn barrels of oil equivalent (boe).

Panoro also declared a quarterly cash distribution of NOK50mn ($4.8mn) for payment in June, bringing total shareholder distributions announced so far this year to NOK100mn ($9.6mn).

The quarter was dominated by the company’s announcement in February that it would acquire an additional 40.375% interest in Block G offshore Equatorial Guinea for an initial consideration of $180mn, increasing its total interest in the block to 54.625% upon completion.

Executive chairman Julien Balkany described the transaction as “a transformational step for the Company at an opportune moment”.

“This acquisition will make Panoro a materially larger and more resilient business, strengthening our capacity to generate cash flow through the cycle and deliver enhanced shareholder returns,” he said.

Balkany added that the company was targeting net production of 20,000 bpd during the course of 2027 following completion of the transaction.

Panoro said the acquisition was completed at a valuation of $3.91 per 2P barrel and financed through a $49mn private placement and a $150mn tap issuance under the company’s existing bond framework, both of which were multiple times oversubscribed. Completion is expected during the third quarter of 2026 following regional competition clearance procedures.

The company reported first-quarter realised crude prices of $68.41 per barrel, reflecting sales completed before the sharp rise in oil prices linked to escalating tensions in the Middle East.

“On a pro forma basis, [we] lifted almost 550,000 barrels since quarter end at a realised price of approximately $114 per barrel,” Balkany said, adding that Panoro expected a significantly stronger performance through the remainder of 2026. The lifted crude volumes are equivalent to approximately 87.4mn litres.

The company said around 80% of full-year crude sales are expected to occur during the second half of 2026, with aggregate annual liftings forecast at between 3.1mn and 3.5mn barrels, equivalent to roughly 493mn to 557mn litres, or up to 5.5mn barrels (874mn litres) on a pro forma basis.

Operationally, Panoro highlighted progress at the Dussafu Marin Permit offshore Gabon, where production averaged 4,579 bpd during the quarter and where the company is preparing the MaBoMo Phase 2 drilling campaign alongside operator BW Energy Limited (OSE:BWE).

The drilling programme is expected to begin in the third quarter of 2026 with two appraisal wells in the northwest Hibiscus area, followed by four new production wells later in the year. Panoro said the new wells could lift gross production capacity at Dussafu to around 40,000 bpd once fully online.

The company also confirmed that Bourdon would become the next production hub offshore Gabon, with estimated recoverable reserves of approximately 25mn barrels, equivalent to around 3.97bn litres of crude, and additional upside potential from nearby drilling targets.

In Equatorial Guinea, Panoro said the Estrella discovery at Block EG-23 had been “high-graded as a potential fast-track development candidate” because of its proximity to existing infrastructure.

The Estrella-1 well previously encountered 60 metres of net hydrocarbon pay and tested at 6,780 bpd, equivalent to approximately 1.08mn litres per day, alongside 48.7mn standard cubic feet per day of gas, equivalent to around 1.38mn cubic metres per day.