Panoro Energy ASA (OSE: PEN): Material discovery in Gabon
• The Bourdon exploration well has encountered approximately 34 metres of net oil pay within a 45-metre column in the Gamba reservoir formation, representing the largest hydrocarbon column discovered to date at Dussafu.• Prior to drilling, Bourdon was expected to hold around 5.1 mmbbl prospective resources, net to Panoro’s WI
• An appraisal side-track could be drilled to better assess the size of the discovery. Depending on the extent of the find, it could be developed as either a subsea tieback or a new development. The discovery is located approximately 15 km west of the BW Adolo FPSO and 7.5 km southeast of the MaBoMo production facility.
• The development of Bourdon could be incorporated as part of the Phase 2 development of the Hibiscus project, which is expected to commence in 2026. While we await further details on the discovery, we have not adjusted its pre-drill estimated size. However, we have increased the associated chance of success from 35% to 75%. Consequently, we have raised our target price from NOK 46 per share to NOK 47 per share in line with our new ReNAV.
• Following the recent decline in share price, the 2025 cash distribution yield is now expected to exceed 13%. In addition, the company is planning to buy back shares.
Valuation and forecast
Our new Core NAV and ReNAV are NOK35.8 per share and NOK47.2 per share respectively. We are now including Bourdon in our Core NAV. We forecast that the company’s YE29 net cash plus the aggregate shareholder distributions over 2025-2029 will exceed the current market capitalization.
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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