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.