Panoro Energy Expands Africa Operations with Block G Acquisition, Targets Production Surge
February 25, 2026, 3:37 pm
Panoro Energy significantly boosted its Equatorial Guinea presence. The company acquired an additional 40.375% interest in offshore Block G from Kosmos Energy. This $180 million deal elevates Panoro’s Block G stake to 54.625%. It targets a 110% increase in 2P reserves and 20,000 bopd production by 2027. The acquisition is financed through a $49 million private placement and a $150 million bond issuance. Panoro also reported robust 2025 financial results and continued shareholder returns, signaling aggressive growth and value creation.
Panoro Energy is rapidly expanding its African oil and gas portfolio. The independent exploration and production company recently announced a major acquisition. It significantly increased its interest in offshore Block G in Equatorial Guinea. This strategic move cements Panoro's position as a dominant player in the region.
The acquisition involves a 40.375% non-operated interest. Panoro purchased this stake from Kosmos Energy. The deal dramatically raises Panoro's total interest in Block G. It now holds 54.625% of the block. This makes Panoro the largest partner in the vital asset. Block G hosts the producing Ceiba field and Okume Complex. Panoro already held a 14.25% interest there. This deep familiarity underpins confidence in the asset's future.
The initial cash consideration for the acquisition is $180 million. The effective date for the transaction was January 1, 2025. Additional deferred contingent consideration could reach $39.5 million. These payments depend on specific production and oil price thresholds. The acquisition price is attractive. It stands at $3.91 per 2P barrel based on initial consideration. It drops to $2.40 per 2P+2C barrel.
This acquisition marks a transformative step for Panoro. It is designed to create substantial shareholder value. The company's scale will increase dramatically. 2P reserves are projected to rise by 110%. Working interest production based on 2025 figures will grow by over 80%. Specifically, the deal adds 46 million barrels (MMbbls) of net working interest 2P reserves. It also brings 29 MMbbls in contingent resources. Production from the acquired interest was 8,271 barrels of oil per day (bopd) net in 2025.
Panoro aims for aggressive production targets. Group net production is projected to reach 20,000 bopd by 2027. This includes contributions from planned work programs. The acquisition enhances Panoro’s joint-venture role. It provides greater influence over future production growth and work programs. The company expects no impact on its corporate cost base. The transaction is materially accretive across all industry metrics. It will also boost the frequency and size of Panoro's crude oil liftings. This drives long-term free cash flow expansion.
Financing the acquisition involves a two-pronged approach. Panoro launched a private placement. This targets up to $49 million (NOK 467 million). It involves issuing nearly 20 million new shares. The placement comprises two tranches. Tranche 1, fully underwritten, includes 11,694,400 shares. Tranche 2, pre-committed, consists of 8,305,599 shares. Tranche 2 is subject to approval at an extraordinary general meeting. That meeting is scheduled for March 20, 2026. The subscription price per share is NOK 23.35.
Additionally, Panoro plans a $150 million tap issuance. This will utilize its existing senior secured bond framework. Fixed income investor meetings commenced in late February 2026. This bond issuance, alongside the private placement, will fund the acquisition. The transaction has received approval from Equatorial Guinea government authorities. Closing is anticipated in Q3 2026.
Beyond the acquisition, Panoro reported robust financial and operational performance for 2025. The company achieved a record high average group working interest production. This reached 10,263 bopd for the full year 2025. Crude oil liftings aligned with expectations, totaling 3.1 million barrels. Full-year 2025 revenue stood at $216.8 million. EBITDA reached $97.6 million. Net cash flow from operations was $73.3 million. Panoro concluded 2025 with $77 million in cash. Gross debt was $150 million. The net leverage ratio was 1.0x.
The company's 2026 guidance reflects its expanded portfolio. Pro-forma group working interest production, including the new Block G interest, is projected to average between 15,000 bopd and 17,000 bopd. Capital expenditure for 2026, on a pro-forma basis, is estimated at $72 million. This includes a significant portion for the MaBoMo Phase 2 drilling campaign in Gabon. Cash operating costs are forecast at approximately $23 per barrel, excluding royalties. Full-year 2026 aggregate liftings, pro-forma, are expected between 5.1 million and 5.5 million barrels. Panoro initiated a hedging program. It currently covers 500,000 barrels at a minimum of $66 per barrel. This program will continue to mitigate price risk for at least 50% of 2026 sales.
Panoro is also advancing other key projects. In Gabon, the Dussafu Marin Permit maintains strong, steady production. The MaBoMo Phase 2 drilling campaign starts mid-year. It aims to restore gross production to 40,000 bopd. New 3D seismic data has been acquired. This will identify future high-impact drilling targets across Gabon licenses. The Bourdon discovery is moving towards a Final Investment Decision (FID).
In Equatorial Guinea, Block G production faced challenges. Subsea multiphase flow pump failures impacted the Ceiba field. A phased intervention program for 2026 is underway. It targets progressive production restoration. Full potential is expected by Q1 2027. Block G holds significant untapped potential. Recovery factors are currently low. Infill drilling and workovers are planned. On Block EG-23, the Estrella discovery is high-graded. It presents a potential fast-track appraisal and development project.
Tunisia operations remain stable at the TPS Assets. Gross production averaged 3,122 bopd in 2025. Ongoing workovers and optimization campaigns are expected to enhance production.
Panoro remains committed to shareholder returns. In 2025, the company distributed NOK 411 million. This included cash distributions and share buybacks. Cumulative returns since March 2022 total NOK 795 million. Panoro declared a Q4 cash distribution of NOK 0.440 per share, totaling NOK 50 million, for payment in March. The 2026 shareholder distribution capacity is $21.6 million. The board will assess future distributions quarterly. This considers the acquisition's completion, oil prices, and operational performance.
The Block G acquisition is a pivotal moment for Panoro Energy. It significantly enhances its scale, reserves, and production outlook. This strategic move solidifies Panoro's position as a leading independent African upstream producer. The company is well-positioned for sustained growth and value generation. Its disciplined capital allocation strategy continues to guide its expansion.
Panoro Energy is rapidly expanding its African oil and gas portfolio. The independent exploration and production company recently announced a major acquisition. It significantly increased its interest in offshore Block G in Equatorial Guinea. This strategic move cements Panoro's position as a dominant player in the region.
The acquisition involves a 40.375% non-operated interest. Panoro purchased this stake from Kosmos Energy. The deal dramatically raises Panoro's total interest in Block G. It now holds 54.625% of the block. This makes Panoro the largest partner in the vital asset. Block G hosts the producing Ceiba field and Okume Complex. Panoro already held a 14.25% interest there. This deep familiarity underpins confidence in the asset's future.
The initial cash consideration for the acquisition is $180 million. The effective date for the transaction was January 1, 2025. Additional deferred contingent consideration could reach $39.5 million. These payments depend on specific production and oil price thresholds. The acquisition price is attractive. It stands at $3.91 per 2P barrel based on initial consideration. It drops to $2.40 per 2P+2C barrel.
This acquisition marks a transformative step for Panoro. It is designed to create substantial shareholder value. The company's scale will increase dramatically. 2P reserves are projected to rise by 110%. Working interest production based on 2025 figures will grow by over 80%. Specifically, the deal adds 46 million barrels (MMbbls) of net working interest 2P reserves. It also brings 29 MMbbls in contingent resources. Production from the acquired interest was 8,271 barrels of oil per day (bopd) net in 2025.
Panoro aims for aggressive production targets. Group net production is projected to reach 20,000 bopd by 2027. This includes contributions from planned work programs. The acquisition enhances Panoro’s joint-venture role. It provides greater influence over future production growth and work programs. The company expects no impact on its corporate cost base. The transaction is materially accretive across all industry metrics. It will also boost the frequency and size of Panoro's crude oil liftings. This drives long-term free cash flow expansion.
Financing the acquisition involves a two-pronged approach. Panoro launched a private placement. This targets up to $49 million (NOK 467 million). It involves issuing nearly 20 million new shares. The placement comprises two tranches. Tranche 1, fully underwritten, includes 11,694,400 shares. Tranche 2, pre-committed, consists of 8,305,599 shares. Tranche 2 is subject to approval at an extraordinary general meeting. That meeting is scheduled for March 20, 2026. The subscription price per share is NOK 23.35.
Additionally, Panoro plans a $150 million tap issuance. This will utilize its existing senior secured bond framework. Fixed income investor meetings commenced in late February 2026. This bond issuance, alongside the private placement, will fund the acquisition. The transaction has received approval from Equatorial Guinea government authorities. Closing is anticipated in Q3 2026.
Beyond the acquisition, Panoro reported robust financial and operational performance for 2025. The company achieved a record high average group working interest production. This reached 10,263 bopd for the full year 2025. Crude oil liftings aligned with expectations, totaling 3.1 million barrels. Full-year 2025 revenue stood at $216.8 million. EBITDA reached $97.6 million. Net cash flow from operations was $73.3 million. Panoro concluded 2025 with $77 million in cash. Gross debt was $150 million. The net leverage ratio was 1.0x.
The company's 2026 guidance reflects its expanded portfolio. Pro-forma group working interest production, including the new Block G interest, is projected to average between 15,000 bopd and 17,000 bopd. Capital expenditure for 2026, on a pro-forma basis, is estimated at $72 million. This includes a significant portion for the MaBoMo Phase 2 drilling campaign in Gabon. Cash operating costs are forecast at approximately $23 per barrel, excluding royalties. Full-year 2026 aggregate liftings, pro-forma, are expected between 5.1 million and 5.5 million barrels. Panoro initiated a hedging program. It currently covers 500,000 barrels at a minimum of $66 per barrel. This program will continue to mitigate price risk for at least 50% of 2026 sales.
Panoro is also advancing other key projects. In Gabon, the Dussafu Marin Permit maintains strong, steady production. The MaBoMo Phase 2 drilling campaign starts mid-year. It aims to restore gross production to 40,000 bopd. New 3D seismic data has been acquired. This will identify future high-impact drilling targets across Gabon licenses. The Bourdon discovery is moving towards a Final Investment Decision (FID).
In Equatorial Guinea, Block G production faced challenges. Subsea multiphase flow pump failures impacted the Ceiba field. A phased intervention program for 2026 is underway. It targets progressive production restoration. Full potential is expected by Q1 2027. Block G holds significant untapped potential. Recovery factors are currently low. Infill drilling and workovers are planned. On Block EG-23, the Estrella discovery is high-graded. It presents a potential fast-track appraisal and development project.
Tunisia operations remain stable at the TPS Assets. Gross production averaged 3,122 bopd in 2025. Ongoing workovers and optimization campaigns are expected to enhance production.
Panoro remains committed to shareholder returns. In 2025, the company distributed NOK 411 million. This included cash distributions and share buybacks. Cumulative returns since March 2022 total NOK 795 million. Panoro declared a Q4 cash distribution of NOK 0.440 per share, totaling NOK 50 million, for payment in March. The 2026 shareholder distribution capacity is $21.6 million. The board will assess future distributions quarterly. This considers the acquisition's completion, oil prices, and operational performance.
The Block G acquisition is a pivotal moment for Panoro Energy. It significantly enhances its scale, reserves, and production outlook. This strategic move solidifies Panoro's position as a leading independent African upstream producer. The company is well-positioned for sustained growth and value generation. Its disciplined capital allocation strategy continues to guide its expansion.