Panoro Energy ASA

Hello, good morning, and welcome to Ponero Energy's Q1 2026 trading and financial update. Before we commence, I'd like to very quickly read the brief disclaimer. This presentation contains certain statements that are, or may be deemed to be, forward-looking statements, which include all statements other than statements of historical fact. Forward-looking statements involve making certain assumptions based on the company's experience and perception of historical trends, current conditions, expected future developments, and other factors that we believe are appropriate under the circumstances. Although we believe that the expectations reflected in these forward-looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward-looking statements due to known or unknown risks, uncertainties, and other factors. Next slide, please. Thank you. As usual, we will have time at the end for Q&A. We will endeavor to take as many questions as we can. The platform today may have a slightly different looking feel to prior webinars, but the functionality is the same. I would note that we think there may be some platform issues today with unmuting, so on this occasion, we very much appreciate that as default, you could please use the written Q&A panel as a first means of asking a question. Alternatively, you may submit a question at investors at PanoroEnergy.com and we will get back to you as soon as we can. Thank you. Next slide, please. I will now hand over to Julian Balcony to take you through a highlight of our results.

Good morning, everyone. I'm Julian Balcony, Executive Chairman of Panoro Energy. I'm joined on the call today by Eric D'Argentre, Panoro COO and President, and Kazi Kadir of CFO. Before Eric and Kazi take you through our results and operation in detail, I would like to share with you some highlights and outlines of good operational progress we are making with our successful and creative growth strategy. Our performance in Q1 was in line with expectations with pro forma working interest production of around 15,000 BIPOC all-for-debt. and we are on course to reach the milestone of 20,000 bytes of old per day in 2027, when our various work programs are completed. Our recent annual statement of reserves has validated a substantial proforma 2P reserve of 84 million bytes, which, based on Q1 pollution, equates to about a 15-year reserve life of a new road. and a proforma 2P plus 2C base of 169 million bytes of oil equivalent, and that is our exciting pipeline of organic growth opportunity that is larger than ever. We are actively developing our assets with near-term catalysts including the Mbamamo Phase 2 drilling campaign and the Bodon discovery advancing further as planned. In Equatorial Guinea, We have received independent 2C resources recognition at Block EG23 for the first time, and we have high-graded the Australia project as a potential fast-track development. Personally, I'm very excited by this asset that has the true potential to be a game changer for Panoro. At the corporate level, we have continued to prudently manage the business with disciplined capital allocation and commitment to deliver strong returns for our shareholders. We announced today the payment of a $50 million dividend for the quarter. More significantly, during the first quarter, as you are all aware, we extended a strong track record of highly accretive growth through M&A, with a well-timed and opportune acquisition of an additional 40.375% interest in BlockG, which I will discuss further in a moment. But before I do so, I want to highlight the externally bright outlook I see for Panoro. Acquisition of producing assets has been and has still a core part of our DNA. I'm also very excited by strong price realisation we have locked in so far during Q2, subsequently to our first quarter result. And with the vast majority of our 2026 code lifting ahead of us, we are extremely well-placed to benefit from the higher old prices environment. Next slide, please. Acquisition of an additional 40.375% interest in blockchain. As you are all aware of the transformational and well-timed acquisition we announced in February, where we are purchasing an additional interest in Block G from our partner, Cosmos Energy. Since this announcement, we have seen benchmarked prices surge by over 50%, which is very clearly a strong positive for the entire period calculation in Panoro's favor. The transaction metrics highlighted on the right side of the slide were highly attractive at the time of the acquisitions, and obviously are even more compelling in today's old prices environment with three-digit numbers. We received an overwhelming endorsement of the acquisition from the capital market with 150 million bounced up and 49 million private investments, both multiple times oversubscribed and closed within a matter of hours. As we outlined at the time of the announcement, we have already secured all governmental approval and no preemptive rights apply. So I want to reassure and highlight that we are on track for a smooth completion of the acquisition in Q3 as announced and planned. The only remaining condition to satisfy is the completion clearance from CEMAC. We have made the necessary application in March and fully expect to receive clearance in Q3. As you can imagine, we are very eager to close this acquisition and take ownership of this enlarged interest in Bergy so we can work with our S-team operating partner, Trident Energy, to unlock the vast renaming potential of Seba Oilfield and Okume Complex that have been a world-class asset for a long time. I will now hand over to Kaji, our CFO, who will take you to the next slide and Q&A results.

Thank you very much, Julien. Next slide, please. Good morning everyone. I will take you through some highlights this morning. You will see that we have on an IFRS basis reported a revenue of 34.9 million US dollars. This is largely a reflection of the volumes we have sold this quarter and a lot of it is skewed towards the early part of the year when we were not in a a period where oil prices were exponentially increasing. And that's basically the reflection of it, which translates into the results, which is, you know, showing in a bit of $10.9 million. And henceforth, the realizations are a little bit, you know, on the lower average than what you're currently seeing in oil prices. Having said that, on a proforma basis, you know, the results including, you know, the potential acquisition volumes and the revenues are $57.4 billion, with a proforma EBITDA of $18.4 billion. All in all, you know, we have 735,000 barrels of proforma in the first quarter of 2026. and we continue to maintain a strong balance sheet uh with 218 million dollars of cash on the balance sheet as a friend of the quarter uh which includes the descriptive cash of about 148 million us dollars uh again as a reminder this will be released and available to use once we conclude on the acquisition of blockchain from cosmos uh we expect the timeline as julian mentioned to be you know in the second half of the year early second half of the year and we remain on track to deliver that um we have continued to uh make our distributions again for this quarter we are announcing a 15 distribution which is in line with the communication we made earlier and is consistent with the capacity we have available within our bond framework. Next slide please. So just to take a step back and look at some history of our distributions, we have consistently returned cash to our shareholders and continue to do that with the 50 million kronas that we paid in March and again today we have announced another 50 million kronas. Again, this is restricted due to the bond framework we have in place for this year with another headroom of 105 million kronas equivalent to to be available throughout the year. As a policy, we will continue to monitor the situation closely before making any distribution decisions, which every prudent oil company continues to do. Next slide, please. A little bit of detail about the liftings. So, as I said, you know, the first quarter liftings were largely, you know, before the escalation of oil prices. But we have, you know, sold, you know, lesser volumes in the second quarter. This is largely driven by build-up of entitlements and the lifting program scheduled between the partners. But we have continued to see a very strong conversion of price realisation here averaging $114 a barrel on a pro forma basis. Next major lifting program in our program is in July with about 1.1 million barrels to be lifted in Sabon and Equatorial Guinea. If we include it on a pro forma basis, we are talking about close to 1.5 million barrels, including the potential acquired volumes from Cosmos. We have continued to take an active approach towards our hedging program. So we are currently protected at an blended average of $76.5 a barrel. for our upcoming lifting in 2026. There is no hedging in place for 2027 currently, but for 2026 we believe that we are adequately balanced for leaving some upside for the company and also protecting the downside if the oil prices were to retreat back to normalised levels. This is the first quarter we are taking a recognition of the change in fair value of the hedges. So you would see, you know, obviously that, you know, a rather large unrealized position on hedges. But we will see that this will continue to just be brewed up as the quarters progress. So expect lesser volatility as we basically convert the program into realizations and also the price movements are not as impactful as they would be in the first period of recognition. So this is a kind of a unique quarter where we see had to basically introduce this but from next quarter we would expect it to not be as impactful as it is right now um next slide please uh capex guidance again uh a lot of information but you know starting from the left we have you know a strong balance sheet as i mentioned with the very good cash position largely driven by, you know, the financings, you know, the $150 million tap issue back in February, March, and also the highly successful $49 million equity issue which we completed in the month of February earlier this year. The bond currently stands at $300 million with $25 million repayment coming in last quarter of this year. And then from next year, we, you know, subject to closing the Cosmos transaction, we will follow the pattern as it is displayed on the screen on the bottom half of the website chart. Capital expenditure. We have continued to maintain the guidance of a full year, 55 million US dollars. This excludes the acquisition costs. And again, we believe that we will continue to maintain the budget as well on Block G with added interest when we have completed the transactions. On a full year basis, this will increase our expenditure to about 17 million US dollars on a pro forma basis. Next slide, please. So I'll now hand over to Eric to take us through the production details and some background on performance of the assets.

Thank you, Kevi. Good morning, everyone. This slide illustrates on the production update the very successful years of Panoro in increasing production year on year from the beginning. And you can see on this slide that 2025, as announced before, was our historical high, above 10,000 barrels of oil per day net to Panoro. And as seen here, the Block G additional equity acquisition is a step change to Panoro production with a pro forma guidance for 2026 between 15 to 17,000 barrel of oil per day. And we are on the road to the 20,000 net to Panoro in 2027 with the Ceiba potential full recovery, as well as a list of productive work on our assets, as well including the Mabomo Phase 2 well on stream, and some additional investments in Okume, Ceiba, and even in Tunisia. Next, please. So, our reserves numbers are very strong. Julien mentioned in his introduction the 15 years production equivalent with our 2Ps. That's a very healthy position to be in for the group. The announced transaction is doubling our reserve base, as you can see on this slide. In 2025, we have achieved a good reserve replacement ratio with the 3.7 million barrel discovery, which you can see on the left, on the right-hand side, on the top, which is a Bordeaux discovery recognition. And we are more or less at a flat number. Our 2P plus 2C remain strong at 170 million barrels on the pro forma basis. So 15 years production, that's what needs to be remembered in this slide. a lot of additional resources to be worked on and transformed into 2P with the appropriate work program on the coming years. Next, please. Block G is a multi-million barrel accumulation, a world-class asset. As you can see here on the table, the recovery factor of Ceiba and Okume complex is approximately 20-21% today. The target is to reach the 30% recovery in the long term by 2035-2040. There is a work plan for that. Just want to stress, to highlight that every 1% of recovery factor we can gain on Block G is equivalent to 25 million barrels of reserves. Or, for those who are familiar with the Panoro story, the 25 million barrels is equivalent to the Bordeaux discovery that was announced last year on Dusafu Block in Gabon. The partnership is working together on the productive investment program for the next three to five years, including targeted well intervention, especially on the Okume complex with platform and dry trees, and additional drain, first in Elon or Ovenk field on Okume complex within 28-29, that's the objective, and later in the 2030-31 on the Ceiba accumulation with subsea wells. The clear objective in Block G for the partnership is to bring the production back to the 30,000 barrels of oil per day level. Next, please. So, on Gabon, DUSAFU, our cornerstone asset, DUSAFU production and uptime, DUSAFU remains very strong for the quarter. Uptime is in the up 95% and above. Mabon Moor Phase 2 drilling campaign is on track for this summer, as previously announced, and we anticipate to be back within summer 2027 at the 40,000 barrel of oil per day, which is an empty capacity of the FPSO, once all four wells on Mabon Moor Phase 2 are online. So that's on track. In the meantime, the Joint Venture is progressing the Bourdon development, as well as the review of additional identified potential in the Bourdon area and in the northern part of the bloc where we shot the seismic a few months ago. The strategy in Doussafour is to maintain a long-term plateau between 30,000 and 40,000 barrels of oil a day, and with all the... identified potential, we are on track in 27, 28, and in the further years. Thank you. Next, please.

Next slide, please.

So, in Tunisia, the asset, the update, we operate the asset onshore and offshore in the region of Sfax. The CPS asset production is very stable with good performance above the 3,000 barrel of oil per day. We have rationalized costs and maintained production. The ongoing project will, annual intervention, will not only maintain the plateau and extend it, but increase production in the course of the year and next year. Next, please. So I have discussed a little bit before on the Doucefou block about the potential. We have, as you know, we shot a seismic in December, January, a 3D seismic on Neuzy-Goudouma block, which you can see on this map, around the Doucefou area, and part of the Doucefou area, which was an area of interest, The seismic processing and its operation is ongoing as per plan. The objective is to confirm the great potential seen in this prospective area in a well-known hydrocarbon basin. You can see all the Dusafu production. You can see the Etame field operated by Valko up north. So the trend and the hydrocarbon play is there. So we are progressing well on this project for an exploration well sometimes in 2029. And it is worth noting that on the Dusafu block, obviously the seismic was shot in this highly prolific area, and we also expect to unlock some material upside. Next, please. Block EG23 and Estrella Discovery that we high-graded. This is a very exciting block and exciting project where Panoro holds 80% working interest and is the operator with its partner, G-Petrol, holding 20%. As I said, it's a very exciting asset in our portfolio. We have received resources recognition which are confirming the potential on the Australia and surrounding prospects, namely Rodo and Riyaba, which you can see on the map in green, just above Australia discovery. Work is progressing on the conceptual development plan of Australia discovery, as well as Rodo and Rabia oil discovery with multi-million barrels of recovery. expected in a commingled joint development plan with one drilling center that will target on one side the Australia discovery and accumulation gas and condensate and on the other side target and drill the Rodo oil accumulation and the Riaba one in reachable distance from one central platform. So that would be a a very cost-effective solution, and we are looking at fast tracking the drilling of the Australia discovery. Next, please. So just to come back on this slide, and that will be the last slide of the presentation, we are on track to deliver as per our guidance. And as we said, and as I said earlier, on the road to the 20,000 barrels of oil per day in the course of 2027, once all the recovery of potential in Ceiba and additional development in Gabon will be done and online. We are in a very good position in terms of reserves with 15 years ahead of us and with a very strong organic growth pipeline of projects to unlock additional potential on our asset base. That will conclude today's presentation. Thank you.

Thank you very much, Eric, and we will now open for Q&A. The functionality has been restored, so if you'd like to ask a question, you can please raise your hand under the React icon on the toolbar or alternatively submit it through the Q&A panel. The first question has been submitted online. Kazi, perhaps, could you please maybe provide a little bit more colour on the phasing of our hedges throughout the remainder of the year and timing of settlement expected for those?

Yes, certainly, Andy. As I mentioned, we take an active approach towards hedging. And our strategy is always to align our hedge positions to the lifting events. So, to the extent possible. In summary, the hedge positions are bespokely concentrated for the same periods when we are basically selling and pricing our cargoes. And the current portfolio or the current positions we have are, again, you know, concentrated towards the lifting events, which are largely in the second half of the year. And they will be unwound as we lift those matters.

Thank you very much, Kasi. Eric, a question has come in. on Equus Organ Block G. Could you please elaborate on the current status of SAVA field and the work ongoing to restore and normalize production?

Thank you. Okay, sure. So the SABRE field, as you were aware, we had some issues last year with the famous multi-festpump MPPs sitting on the seabed, on the subsea clusters, as we call them, with wells being impacted in terms of production. We have had three MPP issues in 2025. Two of them have been restored already. as per planning, one in October last year and one in January-February this year. We have the central cluster that needs some additional equipment, which is being engineered and supplied. We expect to get back to a full, steady, and reliable production on the CEIBA accumulation and complex within the course of the first half of 2027 once everything has been restored and the long read items have been supplied and re-installed. It does require some such interventions which are being engineered and planned accordingly.

Thank you. Thank you very much, Eric. A question has come in perhaps, Julien. You may want to take this one. Obviously, the blockchain acquisition was very well timed. How are we seeing or is potential for further external growth opportunities or is the focus now going to be more on the internal organic opportunity set?

As mentioned, our acquisition of Cosmos Interest has been extremely well timed. You know, we have been announcing it a couple of days before the start of the Middle East conflict. And, you know, clearly our core focus is to close this transaction. You know, as mentioned, you know, we are on track to close it during the next quarter. And, you know, we have a very strong and exciting pipeline of close opportunities. But in the meantime, we are, you know, always considering new M&A transaction. It has always been part of the DNA of Panoro, as I mentioned, and it's very core to our focus. But let's be quite candid here, you know, in the current higher-up prices environment, it's not going to be that easy to replicate, you know, the recent announced transaction with Cosmos.

Thank you. Thank you very much.

question for Kazi again Kazi how is the current oil price environment affecting your thinking about further hedging I think we obviously you know as I say take an active approach towards hedging so in so far as we have certainty of the lifting program we are not averse to hedging But certainly, you know, our approach has always been towards downside protection rather than being speculative on oil price. We will continue to expose the company to upside, you know, through introducing a proportion of our barrels to be protected from the downside. but certainly we will not consider a very heavy hedging program. The hedging program inherently for us is on a rolling basis. We always look at upcoming lift trains and continue to be hedged out six to eight months in advance for the events that are happening. And we are reasonably certain that will happen in that time frame. So the answer is yes, you know, there's always an appetite to hedge, but in the current environment, near term months, we are not expecting or looking to extend any more, you know, positions because the prices are, you know, high as it is, and it gives us a nice upside to our barrels that are currently, you know, available for sale.

Thank you very much. A further question is regarding the final payment to Cosmos when the acquisition is closed. And can it be assumed that final proceeds will be reduced proportionally to the cash flow produced by the EG assets and the corresponding adjustment made? Julian, perhaps you'd like to take that one.

Yeah, this assumption is totally correct. And as we mentioned, the effective date of the transaction with Cosmos is January 1st, 2025. And, you know, we anticipated closing sometime during the summer. And we mentioned in the past that, you know, we were anticipating to the final cash consideration to be paid at time of completion to be somewhere around $140 to $150 million. That was the number we provided to the market back in February when we announced the deal. Obviously, that was before, you know, the strong surge in all prices. So, you know, again, it will depend on when we will close with all the lifting and revenue that will be generated. But we can assume that this number will probably have dramatically improved and be much lower.

Thank you. Thank you very much, Julian. Eric, the question has been submitted, obviously, given the extension to 2053 of the district permit, offshore for barn. How should people be thinking about the longevity and implications positive implications that long-dated extension has for extending the production today?

Okay. That's a very good question. The first benefit of this long-term extension to 2053 versus the 2038, that was our PSE was giving us two times five years post-2028. We will be able to enjoy the long end-term of the current production. Today we are developing reserves, we've been, as you can see, the story is a very, it's a success story, Dusafu, Hibiscus field and discoveries. The early production reserves will reach maturity and long-term final production post 2038. So it's maximizing, capturing the end of production of the current fields, as well as being able to see, to have a long-term view on, first, the Bordeaux discovery, which will be developed, the world treatment, and some other objects which we know we have potential. not just in the Bordeaux area, with Bordeaux South-West extension, and some others, we have potential in the northern part of the block, and this will take, from now on, until 2000, and maybe 30, and even 35, we will still be analyzing and drilling some new objects, and tying them back to the existing production center and facilities, and this will extend post-2038, so we will be able to maintain and carry on investing on the fantastic potential of the block. Thank you.

Thank you very much, Eric. Just a clarification, perhaps, Kazi, just on how the stronger low-price environments when it may be reflected in the schedule of distribution capacity and just to confirm that the 2025 capacity has been predetermined and won't change? Yes, so the 2025 capacity has been predetermined.

This is in line with the bond framework we have and kind of available capacity that it unlocks on a structural basis. We had about just north of $21 million of capacity, which is what is with the bond terms at 50% of free cash flow to equity, which is a defined term in the bondholder agreement. So that is available to us. For next year 2026 cash flows will be the benchmark and 50% of that or you know 2025 cash flows whichever is higher. This is on the assumption that the amendments that were proposed under the bond terms you know back in February have been implemented. And that only happens once we close the Cosmos transaction. Thank you.

Thank you very much. A further question submitted online. Are you able to comment on the expected timeline for the CMAQ approval? And if there are any other factors that may affect the timing of completion of the acquisition?

We don't envisage any roadblocks to the completion of acquisition. CMAQ approval from the entire competition division, let's say, is on track. All the applications, associated filings, explanations have been filed and we are continuing to engage with the excellent team at CMAQ to progress our case. The decision obviously needs to be reached in a maximum of 6 months from the filing date which is still within our completion period and we see no reason why it can't be completed in this time frame. but there's no suggestion or any indication of that.

We can't get there as we demonstrated earlier. Thank you. Thank you very much, Kasi. Eric, a question has come in regarding the Exciting Australia project. Could you please comment what you see as the key steps, events, or catalysts to achieving first gas and oil.

Cool. Thank you, Henri. So, Australia, yes, very exciting project. We are still today in the first exploration period until first quarter of 2028 with no well obligation. This being said, we have the opportunity and the option of fast-tracking and accelerating the drain. The first step is, we are in the seismic reprocessing study, which should finalize, we'll have the final numbers and view this summer. And then, I see Australia, and as I said earlier, the coming of development of Australia and Rodo together, by its typical shallow water development close to the existing infrastructure, which is the ALBA complex. By the time we supply the platform, long-heeled items, the well engineering, the pipeline, it's more or less a two-year process from now. So summer 26, we can expect first oil and first gas. Q1, Q2, 28, that would be our approach.

Thank you. Thank you very much. And that will conclude the Q&A for today's webinar. Once again, we thank you for your attendance. If you have any further questions, please do contact us on investors at vonarenergy.com, and we will get back to you. Thank you.