GABON: Panoro Energy Provides Hibiscus/Ruche Phase I development
- Hibiscus/Ruche Phase I development offshore Gabon is progressing to plan. The BW MaBoMo production facility has been installed on site and 20 kilometres of the subsea flowline installed. Preparations are underway to commence development drilling in January with first oil expected around the end of Q1 2023
- New gas lift compressor arrived in Gabon late October and is being prepared for mobilisation to the FPSO with planned installation around year end and start up during Q1 2023
- In aggregate, good visibility on production growth starting Q1, accelerating through the year
- Crude lifting update
- Total crude oil volumes lifted and sold in Q3 were 880,896 barrels at an average realised price of USD 105.5 per barrel after customary price adjustments and associated fees, resulting in proceeds to the Company of approximately USD 93 million for the quarter
- Total crude oil volumes lifted and sold in the first nine months were 1,039,797 barrels at an average realised oil price of USD 105.7 per barrel after customary price adjustments and associated fees, resulting in proceeds to the Company of approximately USD 110 million for the nine months
- In October, post period end, Panoro completed its scheduled lifting of 647,111 barrels in Gabon resulting in proceeds to the Company of approximately USD 59 million. This lifting brings the aggregate volume of crude oil lifted and sold by Panoro year-to-date to 1,686,908 barrels at an average realised price of USD 100.3 per barrel
- Financial position
- Cash at bank at 30 September was approximately USD 34 million
- Deleveraging continues with gross debt at 30 September of approximately USD 82 million (excluding oil revenue advances that may be taken against liftings) after principal repayments of approximately USD 16 million were made in the first nine months. Further repayments totalling USD 4 million are anticipated to be made prior to year end
- Company largely unhedged, with legacy hedges of 600 bopd rolling off at the end of December 2022
- As previously indicated, at its Q3 results, Panoro will update on a capital return policy for shareholders
- Production update
- Working interest production for the first nine months averaged approximately 7,700 bopd
- Production expected to return to in excess of 8,000 bopd level around the year end with activities across all three production assets underway
- Q3 working interest production of approximately 7,300 bopd temporarily affected by pump replacements in both Equatorial Guinea and Tunisia (since restored)
- Target of achieving net 12,500 bopd during 2023 on track, with growth expected starting in Q1 2023
- John Hamilton, CEO of Panoro, commented:
‘As previously communicated our lifting schedule significantly stepped up from July onwards with large liftings in Equatorial Guinea and Gabon in particular, combined with robust oil prices, giving Panoro good momentum into year end and beyond. The Hibiscus Ruche Phase 1 development offshore Gabon is progressing very well with production growth in sight, keeping our outlook of achieving net 12,500 bopd during 2023 firmly on track.