- Transaction to be completed in 90 days
The Aje Field Development Plan is focused on producing and commercialising gas, with potential for low emission energy
The Federal Government has given final approval for the sale of 100 per cent stake of Panoro Energy in OML 113 to PetroNor. According to a statement issued by Panoro, all government approvals have now been received for the sale of the shares of its fully-owned subsidiaries that hold 100 per cent of the shares in Pan Aje to PetroNor.
PetroNor is an African-focused independent oil and gas exploration and production company listed on the Oslo Euronext Expand with the ticker PNOR.
Pan Aje participates in the exploration for and production of hydrocarbons in Nigeria and holds a 6.502 per cent participating interest, with 16.255 per cent cost bearing interest, representing an economic interest of 12.1913 per cent in Oil Mining Lease 113 (OML 113), which includes the Aje field.
The statement noted that receipt of government approvals satisfied the last key condition precedent for the completion of the transaction.
Panoro and PetroNor will now proceed with the final steps to achieve completion of the transaction, including the issuance of new PetroNor shares for distribution to Panoro shareholders.
It is expected that the transaction will close within the next 90 days, and further information will become available in the coming weeks.
John Hamilton, CEO of Panoro, said: ‘’The receipt of government approvals in Nigeria is a major achievement and enables us to now proceed swiftly to completion of the sale of Panoro’s interest in OML 113 to PetroNor and unlock value for our shareholders.
“The divestment is consistent with Panoro’s strategy to rationalise and high grade its upstream portfolio, placing emphasis on the allocation of capital to short-cycle oil production projects and focused exploration close to infrastructure hubs.
“The transfer of ownership of OML 113 to PetroNor will allow Panoro to reduce and optimise its capital expenditures while preserving the ability for our shareholders to benefit from future gas successes through the distribution of shares in PetroNor to its shareholders.
“Panoro is confident that PetroNor is strategically well positioned to unlock the gas potential at Aje for the benefit of all stakeholders.’’ In a statement issued in Oslo, Norway, PetroNor expressed delight over the transaction.
According to the statement, “the Nigerian Upstream Regulation Commission has approved consent to PetroNor’s acquisition of Panoro’s ownership interest in Oil Mining Lease 113 offshore Nigeria, containing the Aje oil and gas field, and for the transfer of OML 113 to Aje Petroleum.
“The ownership of Aje Petroleum is to be shared between the OML 113 operator, Yinka Folawiyo Petroleum and PetroNor on the basis of a 55 per cent and 45 per cent shareholding respectively, with PetroNor assuming the role of technical operator.
“The receipt of this long awaited consent is exciting news PetroNor and for the development of OML 113.”
Speaking on the feat, the interim Chief Executive Office, Jens Pace, said: “The Aje Field Development Plan is focused on producing and commercialising gas, and has the potential to provide low emission energy corresponding to five per cent of the total power production of Nigeria.
“The terms of the transaction remain the same as per our previous announcements. I look forward to working with our partners on the Aje licence and to welcoming the Panoro’s shareholders into PetroNor,” he added.
The transaction is expected to be completed in 90 days. 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 exploration and production assets in Africa with oil production from fields in Equatorial Guinea, Gabon, Tunisia and Nigeria.