Panoro Energy ASA (OSE: PEN): Gabon production nears 40 mbbl/d with 3 further wells to come back onstream by YE24
• 3Q24 Gabon gross production was 27,465 bbl/d.• The DHIBM-7H well at Hibiscus Northern Flank is now on stream taking overall current gross production in Gabon close to 40 mbbl/d.
• The current rate is very high when considering that three wells (out of eight in the Hibiscus-Ruche area) are still shut-in. These wells are expected to be onstream by YE24.
• Conventional ESPs will be installed in these three wells. Two of these wells are having their ESPs replaced while the third well) has never had an ESP installed.
• We continue to expect corporate production to be over 13 mbbl/d by YE24.
• The key near-term newsflow is the drilling of the Akeng Deep prospect on Block S in Equatorial Guinea. The well is targeting a 180 mmbbl prospect (Panoro WI: 12%) with an unrisked NAV of ~NOK15/sh. The well is expected to spud in about a week.
• Given the drilling results in Gabon in 2024, we are anticipating a high Reserves Replacement Ratio in 2024.
• We re-iterate our target price of NOK52 per share. The current dividend yield is >6.5%.
• 2025 will be a very different year compared to 2024 with higher production but much lower capex (~ only US$40 mm vs ~US$75 mm in 2024), which leaves ample room for further shareholder distributions.
Valuation and forecast
Our Core NAV and ReNAV are respectively NOK33/sh and NOK52/sh (broadly 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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