Successfully completed private placement

Panoro Energy ASA ("PEN", OSE ticker code), the independent oil and gas
company with assets in West Africa and Brazil, has successfully
completed a NOK 550 million private placement directed towards Norwegian
and International institutional investors. The share issue was
oversubscribed at the top end of the range and the price in the
book-building was set at NOK 7.80 per share. 70,500,000 shares will be
issued following the private placement. The completion of the private
placement is partially conditional upon the approval by an Extraordinary
General Meeting in Panoro Energy.

Kjetil Solbraekke, CEO of Panoro Energy ASA commented: "Panoro Energy
looks forward to an exciting year, with the concept selection for our
BS-3 assets and drilling of wells in our MKB project in Congo. This
share issue significantly improves our ability to progress these
projects and also strengthens the financial foundation for value
creation from other assets in our portfolio. At the same time, we
welcome the broadening of the institutional shareholder base this
transaction brought along".

Settlement of approximately 16.4 mill shares will take place on or
around February 4, 2011, by delivery of existing and unencumbered shares
in the Company that are already listed on Oslo Stock Exchange, pursuant
to a share lending agreement entered into between Pareto Securities,
Panoro and existing shareholders. Allocation of the remaining 54.1
million shares will be conditional upon approval at the EGM in the
Company, expected to take place on or around March 1, 2011 and will not
be tradable until the share capital increase has been registered in the
Norwegian Register of Business Enterprises, and a listing prospectus has
been approved by Finanstilsynet (FSA). The Board of Directors decided to
waive the preferential right of existing shareholders to be able to
swiftly complete the private placement in favorable market conditions.
Through the proposed repair issue directed towards the shareholders of
Panoro Energy as of close of the Oslo Stock Exchange on 3 February 2011,
the interest of the current shareholders will be maintained.

The Board of Directors will propose to the EGM a subsequent offering of
6.5 million shares at a subscription price of NOK 7.80 per share (total
proceeds up to NOK 50 million) directed towards PEN shareholders as of
February 3, 2011 (as recorded in VPS on February 8, 2011) who were not
allocated shares in the private placement.

The shares in the Company will trade excluding the right to participate
in the potential subsequent repair offering from and including today,
February 4, 2011.

Pareto Securities AS and Carnegie ASA acted as joint lead managers in
the private placement.

For further information, please contact:

Anders Kapstad, CFO
Tel: +47 23 01 10 01
Cell: +47 918 17 442
Email: anders.kapstad@panoroenergy.com