Vanco Spuds Sabia Well Offshore Brazil

Panoro Energy ASA announced spudding of the Sabiá well in the BM-S-72 block in the southern Santos basin offshore Brazil. The well is being drilled with Transocean's drilling rig, the GSF Arctic I (mid-water semisub).

The Sabiá well is located offshore approximately 143 miles (230 kilometers) south of the city of Santos in a water depth of approximately 656 feet (200 meters). The well will be vertically drilled with a target depth of 14,718 feet (4,486 meters). The primary reservoir target for this well is post-salt sandstones of the Itajai-Acú formation, expected to be encountered at around 12,139 feet (3,700 meters) below mean sea level. The prospect is also targeting a secondary sandstone in the Ilha Bela member of the Jureia formation.

All necessary permits are in place. The drilling operation for this well is expected to take 2-3 months. After finishing this well the rig will drill the Canario prospect (BM-S-63) and the Jandaia prospect (BM-S-71).

Panoro Energy holds a 15% ownership in this block. The partners are Vanco Brasil Exploração e Produção de Petróleo e Gas Natural Ltda (Operator 70%) and Brasoil Round 9 Exploracáo Petrolifera Ltda (15%). Vanco will finance Panoro's 15% share of drilling costs for this exploration well.

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