24 Nov

Oil Producer Adds Reserves and Exploration Upside Across Africa

November 24, 2023

Source: Stephane Foucaud  (11/17/23)

Stephane Foucaud at Auctus Advisors sees over 90% upside for Panoro Energy based on increased reserves, new exploration potential, and improving fundamentals.

Norway-based Panoro Energy ASA (PEN:OSE; 1PZ:FRA) provided an operational update highlighting increased reserves and new exploration upside across its African oil assets, noted Auctus Advisors in a November 17 research report.

Analyst Stephane Foucaud reiterated a Buy rating and NOK$50 price target on Panoro Energy.

Expanded Resource Estimates in Gabon

According to Foucaud, the operator of Panoro’s Dussafu permit offshore Gabon now estimates 10 million barrels of oil in place above initial expectations, adding 4-5 million barrels of recoverable resources.

This is in addition to the recent 6-7 million barrel discovery at Hibiscus South, both driving increased reserve potential.

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New Exploration Prospects Identified

Panoro also plans to drill the 29 million barrel Bourdon exploration prospect on the Dussafu permit. The company sees further upside at its Ceiba field in Equatorial Guinea and added the Akeng Deep prospect.

The analyst believes these opportunities, along with expanded reserves, support his unchanged valuation.

Production Impacted by Temporary Issues

While Panoro produced 10,000 barrels per day in Q3, exceeding estimates, short-term electrical submersible pump (ESP) problems temporarily impacted the Dussafu wells.

This will defer some production to late 2023 and early 2024 before new wells boost output.

Significant Upside Based on Improving Fundamentals

Auctus’ NOK$50 price target implies over 90% upside potential for Panoro Energy. The firm’s valuation is based on increasing reserves, new exploration prospects, and attractive EV/DACF multiples.

In summary, the analyst sees the company’s expanded resources and lower leverage supporting significant share price appreciation.

 

Important Disclosures:

  1. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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Disclosures for Auctus Advisors, Panoro Energy ASA, November 17, 2023

Panoro Energy ASA (“Panoro” or the “Company”) is a corporate client of Auctus Advisors LLP (“Auctus”). Auctus receives, and has received in the past 12 months, compensation for providing corporate broking and/or investment banking services to the Company, including the publication and dissemination of marketing material from time to time.

MiFID II Disclosures This document, being paid for by a corporate issuer, is believed by Auctus to be an ‘acceptable minor non-monetary benefit’ as set out in Article 12 (3) of the Commission Delegated Act C(2016) 2031 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. It is produced solely in support of our corporate broking and corporate finance business. Auctus does not offer a secondary execution service in the UK. This note is a marketing communication and NOT independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and this note is NOT subject to the prohibition on dealing ahead of the dissemination of investment research.

Author The research analyst who prepared this research report was Stephane Foucaud, a partner of Auctus.

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Note prepared in good faith and in reliance on publicly available information Comments made in this note have been arrived at in good faith and are based, at least in part, on current public information that Auctus considers reliable, but which it does not represent to be accurate or complete, and it should not be relied on as such. The information, opinions, forecasts and estimates contained in this document are current as of the date of this document and are subject to change without prior notification. No representation or warranty either actual or implied is made as to the accuracy, precision, completeness or correctness of the statements, opinions and judgements contained in this document.

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