BW Offshore

Agreement for acquisition of stake in Dussafu field from Panoro Energy

With reference to stock exchange release dated 22 December 2016.

Pursuant to the memorandum of understanding entered into with Pan-Petroleum Gabon B.V. ("PPGBV"), a fully owned subsidiary of Panoro Energy ASA, BW Energy Gabon Pte. Ltd ("BWEG"), a subsidiary of BW Offshore, has entered into a definitive Sale and Purchase Agreement (the "SPA") with PPGBV to acquire a further 25% working interest in the Dussafu production sharing contract in Gabon.

Upon completion of the SPA, BWEG will pay PPGBV a total cash consideration of USD 12 million and provide a sellers' credit of up to USD 12.5 million in order to fund capital expenditures of PPGBV's retained interest in the Dussafu block through to first oil production. The total gross capital expenditure to reach first oil in 2018 is estimated to be USD 150 million.

Closing of the transaction with PPGBV is subject to fulfilment or waiver of conditions precedents, including among others, closing of the transaction with Harvest Energia B.V. and approval from the government of Gabon. It is estimated that closing will take place in Q1 2017.

BWEG will, pursuant to closing of the transactions with PPGBV and Harvest Energia B.V., hold a 91.667% working interest in the Dussafu production sharing contract, subject to discussions with the Gabon Oil Company (GOC) for their potential participation. Panoro Energy will hold the remaining 8.33% working interest in the Dussafu license.

BWEG is owned by BW Energy Holdings Pte. Ltd. (BWEH), a joint venture company between BW Offshore (66.67%) and Maple Company Limited (33.33%), a wholly owned subsidiary of BW Group Limited, for the purpose of pursuing oil and gas interests.

For further information, please contact:

Carl K. Arnet, CEO, [phone]

Knut R. Sæthre, CFO, [phone]

About BW Offshore:

BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore has a fleet of 14 owned FPSOs and one FSO represented in all major oil & gas regions world-wide. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange.

About Panoro Energy 

Panoro Energy ASA is an independent E&P company based in London and listed on the Oslo Stock Exchange with ticker PEN. The Company holds high quality production, exploration and development assets in West Africa, namely the Dussafu License offshore southern Gabon and OML 113 offshore western Nigeria. In addition to discovered hydrocarbon resources and reserves, both assets also hold significant exploration potential. For more information, please visit the Company's website at www.panoroenergy.com.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

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Source: BW Offshore via Globenewswire