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Ministry of Mines and Hydrocarbons of Equatorial Guinea and the joint venture partners at Block G offshore Equatorial Guinea have agreed a material time extension of the Production Sharing Contract (PSC) until 31 December 2040, covering the producing Ceiba and Okume Complex Fields

Prior to the extension, the PSC expiry for the Ceiba Field was 2029 and for the Okume Complex field 2034. Management expects that Panoro’s net 2P reserves will increase by between two to three mmbbl as a result of the PSC extension.

John Hamilton, CEO of Panoro, commented, “Upon entering the Block G Joint Venture, we had always identified an upside in extending the PSC expiry dates to realise the full potential in the Ceiba and Okume fields.”

“The extension substantially increases Panoro’s net 2P reserves in Block G and creates the time in which to unlock the material resources we believe to be present.”

The extension is expected to support the next phase of investment by the joint venture partners with further development drilling anticipated to commence in the H2 2023 to target material new production growth beyond our current guidance. Further information on these wells will be communicated in due course as planning is refined.

Panoro’s full-year 2021 working interest (14.25%) production at Block G averaged 4,261 bpd on a proforma basis, accounting for approximately 56% of Panoro’s total production in the year. Trident Energy is operator of Block G with a 40.375% working interest while Kosmos Energy holds a 40.375% working interest and GEPetrol a 5.0% working interest.