Panoro Energy ASA (OSE:PEN), an independent upstream producer focused on African offshore assets, said a planned expansion in Equatorial Guinea will almost double its reserve base and help lift production towards 20,000 barrels per day (bpd) in 2027, following a $180mn acquisition announced earlier this year.
The company noted on Thursday in an operational and financial update in advance of its Q1 2026 results which are scheduled for release on May 21 that it agreed in February to acquire an additional 40.375% interest in Block G offshore Equatorial Guinea, increasing its stake to 54.625% upon completion.
The transaction, expected to close in Q3 2026 following customary Central African Economic and Monetary Community (CEMAC) clearance, also includes contingent payments of up to $39.5mn linked to oil prices and production performance.
The acquisition significantly increases Panoro’s reserve base. Pro forma 2P reserves rise to 83.79mn barrels of oil equivalent (boe), while combined 2P reserves and 2C contingent resources expand to 169.09mn boe, according to the company’s updated reserves statement.
Management highlighted the deal’s valuation metrics, noting the acquisition was completed at approximately $3.91 per 2P barrel and $2.40 per combined 2P plus 2C barrel, levels that compare favourably with recent African upstream transactions.
The deal was financed through a $49mn equity private placement and a $150mn tap issuance under Panoro’s existing bond framework. The company said both transactions were multiple times oversubscribed.
Group production averaged 14,960 bpd on a pro forma working interest basis during Q1 2026, compared with IFRS-reported production of 8,515 bpd. The difference reflects the pending completion of the Block G acquisition.
Production included 8,720 bpd from Equatorial Guinea, 4,688 bpd from Gabon and 1,552 bpd from Tunisia. Panoro maintained full-year 2026 production guidance of 15,000–17,000 bpd.
Executive chairman Julien Balkany said the company remained focused on advancing a pipeline of organic growth projects, including the MaBoMo Phase 2 drilling campaign offshore Gabon and appraisal work around the Bourdon discovery.
Panoro lifted 785,908 barrels during the quarter on a pro forma basis at an average realised price of $68.23 per barrel, generating proceeds of $53.6mn. The company said second-quarter liftings are expected to benefit from stronger oil prices and improved premium differentials following recent volatility in Middle East energy markets.
Cash balances stood at approximately $213mn at the end of March, including restricted balances of $148mn, while gross debt totalled $300mn in senior secured notes.
The company has also expanded its hedging programme, protecting approximately 1mn barrels of 2026 production at a blended price of around $76.5 per barrel through swaps and collars.
In Equatorial Guinea, operations at the Ceiba field on Block G were affected by unplanned facilities downtime during the quarter, although Panoro said partial production restoration had already been achieved and additional reliability work would continue throughout 2026.
At Block EG-23, where Panoro holds an 80% operated interest, the company is advancing subsurface studies around the Estrella discovery as a possible fast-track tie-back development candidate.
The Estrella-1 well encountered 60 metres of net hydrocarbon pay and previously tested at 6,780 bpd alongside 48.7mn cubic feet per day (mmcf/d) of gas.
In Gabon, Panoro said the Dussafu Marin permit continued to deliver stable production performance. Authorities also approved an amendment extending the production sharing contract through to 2053, including optional extension periods.
The MaBoMo Phase 2 drilling programme offshore Gabon remains on track for first oil in the second half of 2026, while the Bourdon discovery is progressing towards a final investment decision.
Panoro added that new 3D seismic acquisition programmes covering the Niosi, Guduma and Dussafu licences have now been completed, supporting the identification of future drilling targets.
In Tunisia, production from the TPS assets remained stable, with workovers and optimisation programmes expected to support further output improvements later this year.
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