Panoro Energy ASA (OSE: PEN): All eyes on EG
• 1H24 production was 9,168 bbl/d. EG and Gabon production had already been disclosed. 1H24 production in Tunisia was 1,670 bbl/d (we forecasted 1,760 bbl/d) given subdued activities.• In EG, the first infill well encountered the primary and secondary reservoirs in line with expectations. Production is expected to begin early September. The second infill well is expected to be completed and onstream in October. We forecast WI production in EG to reach 5.4 mbbl/d in 4Q24.
• The rig will then move to the Akeng Deep location. The well is targeting a 180 mmbbl prospect with an unrisked NAV of NOK16.30 per share.
• We re-iterate our target price of NOK52 per share. In addition to drilling Akeng Deep, the other key newsflow will be the increase in production in Gabon and the drilling of the Bourdon prospect (also in Gabon) with an unrisked NAV of ~NOK4.90 per share.
Valuation and forecast
Panoro held US$43.3 mm in cash at the end of June, which is broadly in line with our expectations. We have trimmed our production for Tunisia in 2024 but our net cash forecast is broadly unchanged with net debt of ~US$5 mm. Our Core NAV and ReNAV are respectively NOK34 per share and NOK53 per share (unchanged).
Panoro Energy is an international independent oil and gas company engaged in the exploration and production of oil and gas resources in Brazil and West Africa. In Brazil, Co. participates in a number of oil and gas licenses located in the Santos basin outside the south-east coast of Brazil and in the Camamu-Almada basin in the state of Bahia. In West Africa, Co. participates in a number of licences in Nigeria and Gabon. As of Dec 31 2013, Co.'s commercial production is from the Manati field in Brazil.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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