Energy Co.'s Production Reaches 13 Mbbl/D; Two Wells Expected by Q1 2025

Source: Stephane Foucaud 11/20/2024

Panoro Energy ASA (PEN:OSE; 1PZ:FRA) recently reported increased production and upcoming exploration catalysts, according to an Auctus Advisors research note.

Auctus Advisors analyst Stephane Foucaud, in a research report published on November 20, 2024, maintained his target price of NOK51.00 on Panoro Energy ASA (PEN:OSE; 1PZ:FRA).

The report highlights increased production and upcoming exploration catalysts.

Foucaud noted recent production growth, stating, “Since last week, WI production has increased from 12.5 mbbl/d to 13 mbbl/d.” He highlighted strong performance in Gabon, where “gross production continues to be ~40 mbbl/d” with potential for FPSO capacity to increase by 10% to 44 mbbl/d.

Regarding Equatorial Guinea operations, the analyst noted that “gross production in EG stands at 29 mbbl/d” and the second infill well “could take overall gross production in EG to 35 mbbl/d,” potentially adding “~800 bbl/d net to Panoro’s 14.25% WI.”

The analyst emphasized strong cash flow prospects, stating, “With capex of only ~US$40 mm in 2025, we continue to forecast free cash flow of ~ US$120 mm in 2025.” He added that “the company’s financials will be much more resilient to lower oil prices.”

Foucaud highlighted upcoming catalysts, including “results of the Akeng Deep well in EG (180 mmbbl – Panoro WI: 12%) with an unrisked NAV of ~NOK15 per share expected by YE24″ and the Bourbon prospect in Gabon planned for drilling in 1Q25.

Auctus Advisors’ valuation is based on NAV, with “Core NAV and ReNAV are respectively NOK32 per share and NOK50.5 per share.”

The share price at the time of the report of NOK27.00 represents a potential return of approximately 89% to the analyst’s NOK51.00 target price.

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( Companies Mentioned: PEN:OSE; 1PZ:FRA, )

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