Panoro Energy, a London-based and Oslo-listed oil and gas company, has announced the sale of its fully owned subsidiaries Pan-Petroleum Services Holdings BV and Pan-Petroleum Nigeria Holding BV to PetroNor E&P ASA.
According to Panoro, the divested subsidiaries hold 100 percent of the shares in Pan-Petroleum Aje Limited, which participates in the exploration for and production of hydrocarbons in Nigeria and holds a 6.502 percent participating interest, with a 16.255 percent cost-bearing interest, representing an economic interest of 12.1913 percent in Offshore Mining Lease no. 113 (OML 113).
“Following completion of the Transaction, Panoro has no operational presence remaining in Nigeria,” Panaro said.
Panoro noted that the upfront consideration of $10 million is expected to the paid within fifteen business days via the allotment and issue of 96,577,537 new PetroNor shares.
“The volume of PetroNor shares issued to Panoro has been determined with reference to the contractually determined 30-day volume-weighted average price (VWAP) of PetroNor’s shares which are listed on the Oslo Børs with the Ticker “PNOR”.
John Hamilton, CEO of Panoro, said: “We are pleased to have finally concluded the sale of Panoro’s interest in OML 113 to PetroNor and unlock value for our shareholders who can continue to benefit from future gas successes at OML 113 through the upcoming distribution of the shares in PetroNor received as payment for the upfront consideration.
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“This also represents a key milestone for Panoro’s strategy with the first dividend payment to its shareholders.
“Meanwhile the Board and management of the Company remain fully committed to initiating sustainable cash dividends at the earliest opportunity and to unlock further value for its shareholders,” he said.
On the other side, PetroNor confirmed that it has completed the purchase of Panoro’s wholly-owned subsidiaries that together hold 100 percent shares in Pan Aje.
It added that the acquisition of Panoro’s interests in OML 113 clears the path for the establishment of Aje Production as a jointly owned venture with Yinka Folawiyo Petroleum, the operator of OML 113.
Jens Pace, interim CEO, PetroNor, said the acquisition of the ownership interest in the Aje field is strategically attractive and supports our stated growth strategy of acquiring assets that add production, material reserves, and resources to the company.
“With the establishment of Aje Production, YFP and PetroNor will form a dynamic and effective licence partnership to lead the redevelopment of the Aje field.
“We are pleased to confirm that this long-awaited transaction with Panoro has now been completed,” he said.
