Panoro Sells Stake in OML113 License Offshore Nigeria

Panoro Energy ASA has announced that its wholly owned subsidiary Pan-Petroleum Aje Limited, has entered into a Sale and Purchase Agreement with the Nigerian company Lekoil 113 Nigeria Limited (the “Buyer”) for the sale of Panoro’s 6.502% participating interest in the OML113 license offshore Nigeria for a consideration of US$30 million.

Lekoil 113 Nigeria Limited is a subsidiary company of Lekoil Limited which is listed on the London Stock Exchange AIM.

Under the terms of the SPA, the working capital adjustment date is 1stJanuary 2013.

Within five (5) Business Days of entering into the SPA, the Buyer is required to provide a US$3 million bid bond for the transaction.

Within ninety (90) days of entering into the SPA, the Buyer is required to deposit into an escrow account the cash consideration of US$30 million plus certain costs incurred from 1stJanuary 2013. Once these funds have been deposited by the Buyer, Pan-Petroleum Aje Ltd will seek government approval for the transaction and other required consents. In the interim period, Panoro will continue to service license and Joint Venture commitments and in parallel, the Buyer will be required to service the escrow account by the same amounts. On completion of the transaction, the consideration and working capital adjustment is to be released to Pan-Petroleum Aje Ltd from the escrow account.