PetroNor E&P to acquire Panoro Energy’s interest in OML 113

FkL
PNOR 21.10.2019 kl 19:44 11991

PetroNor E&P to acquire Panoro Energy’s interest in OML 113, offshore Nigeria
Transaction to diversify PetroNor’s portfolio with production and significant upside potential

Oslo, 21 October 2019: PetroNor E&P Limited (the "Company" or “PetroNor” with OSE ticker: “PNOR”), the independent oil and gas exploration and production company with a focus on production, development and exploration assets across sub-Saharan Africa, is pleased to announce that it has entered into a sale and purchase agreement (“SPA”) with Panoro Energy ASA (“Panoro”), for its interest in Offshore Mining Lease no. 113 (“OML 113”) Offshore Nigeria, containing the Aje oil and gas field.

The proposed transaction will see PetroNor acquire 100% of the shares of Panoro’s fully owned subsidiaries Pan-Petroleum Services Holding BV (“PPSH”) and Pan-Petroleum Nigeria Holding (“PPNH”) (“Transaction”), which currently hold 100% of the shares in Pan-Petroleum Aje Limited (“Pan Aje”), which participates in the exploration for and production of hydrocarbons in Nigeria and holds a 6.502% participating interest, with 16.255% cost bearing interest, representing an economic interest of 12.1913% in OML 113.

The upfront consideration for the Transaction is US$ 10 million to be paid in PetroNor shares, with an option to pay partly in cash should the share price of PetroNor fall below USD 0.13 per share. The transaction also includes a contingent consideration structured as a royalty payment on future gas sales associated with the further development in OML 113.

Concurrently, PetroNor is in parallel concluding a separate agreement with the OML 113 operator Yinka Folawiyo Petroleum (“YFP”) to create a new holding company (“SPV”) that will see PetroNor assume the lead technical and management role to develop the next phases of the project. Together these agreements provide the framework and pathway towards sanction of the next phases of the Aje project in order to exploit the substantial gas and liquids reserves and unlock its significant value. PetroNor and YFP will hold respectively 45% and 55% of the SPV. The SPV, which will include the current license ownerships of YFP (the Operator), YPF-DW and Panoro, will hold an approximate 75.5 % participating interest, approximately 29% economic interest for the initial period and approximately 38.7% economical interest for the main part of the project going forward. The closing of the two transactions are interlinked and each is contingent on the closing of the other.

Jens Pace, Chief Executive Officer of PetroNor said: “This acquisition is wholly in line with our stated growth strategy in terms of acquiring assets that add production and material reserves and resources to the Company. The upside potential attached to this project is significant and we are confident that the restructuring of the Aje partners, through the partnership with YFP, will result in a dynamic and effective operating JV capable of realising the full value of the field, both in terms of near-term oil production growth and more importantly with regards to the development of the substantial gas resources associated with the field.

The Transaction ensures alignment between PetroNor, Panoro and YFP meaning all parties benefit in the success case. We continue to assess a pipeline of opportunities that will enable us to achieve our ambitious growth target of 30,000 boepd within three years through organic and acquisitive means, as we seek to establish ourselves as a premier, full-cycle, pan-African operator”.

The Transaction is conditional on execution and conclusion of the agreement with YFP, expected to conclude in the coming weeks, and upon the authorisation of the Nigerian Department of Petroleum Resources and the consent of the Nigerian Minister of Petroleum Resources. Securing the authorisation and consent is expected to take several months with a long stop date agreed by the parties of 31 December 2020, following which either party is entitled to terminate the agreement.

Transaction highlights:
• The transaction diversifies PetroNor’s portfolio through the addition of:
o An initial net production rate of 350 - 400 boepd
o An added 2C reserves base of 20 million barrels of oil equivalents (boe) that are expected to be converted to 2P reserves upon approval of the development plan
o A successful development of the gas associated with the Aje field could result in net daily production of approximately 2,500-3,000 boepd to PetroNor

• The principal strategic rationale for the acquisition:
o Become technical operator of a de-risked development project with significant upside potential
o Alignment of the license partners to support a fully financed project re-development
o Opportunity to leverage PetroNor’s technical experience to progress Aje project and deliver near-term increased commercial recovery of hydrocarbons
o Diversification of portfolio in line with stated strategy
o Entry into Nigeria providing a foothold to explore further opportunities in country
o Funding mechanism that ensures alignment of all parties, diversifies PetroNor’s shareholder register with approximately 3,000 shareholders from Panoro and enhances free-float
o Positive environmental impact as PetroNor intends to eliminate the current gas flaring within 18 months
o The gas development project will provide a cleaner source of energy for the city of Lagos replacing diesel fired power generators

• PetroNor to acquire 100% of the shares of Panoro’s fully owned subsidiaries Pan-Petroleum Services Holding BV (“PPSH”) and Pan-Petroleum Nigeria Holding (“PPNH”)

• PPSH and PPNH are holding companies with local Directors Vistra (Amsterdam) BV, representing the sole shareholder, Panoro. Since Pan Aje has a non-operating participation on OML 113, the company does not have local employees and are represented by Panoro employees as the Board of Directors. The three companies are managed by Panoro personnel.

• The acquired companies hold 100% of the shares in Pan Aje, which participates in the exploration for and production of hydrocarbons in Nigeria and holds a 6.502% participating interest, with 16.255% cost bearing interest, representing an economic interest of 12.1913% in Offshore Mining Lease no. 113 (OML 113)

• Separate Agreement with YFP, the Operator of OML 113, will result in the creation of a special purpose vehicle (“SPV”) to restructure the OML 113 licence partnership and fund the further development of the Aje field
o The SPV will combine the YFP, YFP-DW and Panoro ownership of OML 113
o The SPV will hold 75% participating interest in the license and an effective 38.755% economical interest for the main production period
o The SPV will be the operator and PetroNor will be the lead technical partner through a joint team

• Upfront consideration: allotment and issue of shares in PetroNor with a value of US$ 10 million. In the event the share price is less than USD 0.13, PetroNor has the right to pay partly in cash.

• Contingent consideration: once Pan Aje has recovered all costs related to the accumulated investments incurred after the date of completion, PetroNor shall pay to Panoro additional consideration of US$ 0.15 per 1,000 cubic feet of the Aje Natural Gas Sales Volume

The Asset
The Aje field came on production in May 2016 and has produced a cumulative of 3.6 million barrels of oil and condensate as at 1st August 2019. The current production rate is in the order of 3,000 bopd of oil (including some condensate). PetroNor has been working with the indigenous company, YFP, to prepare a re-vitalisation plan for the field. The development program is phased to minimize exposure and secure a solid rate of return on the investment. The field is expected to reach a gross production of 20,000 boepd of which 5,000-7,000 bopd consist of oil and condensate.

Conference call
The management of PetroNor will host a conference call at 09:30 Oslo time on Tuesday 22 October. Interested parties can access the call on the following dial in details:
• Norway: 800 62 196
• United Kingdom: 0800 358 9473
• International: +47 23500243
• PIN: 23956996#

An audio playback of the call will be made available upon request.

For further information, please contact:
Jens Pace, Chief Executive Officer
Stephen West, Chief Financial Officer
Tel: +44 20 3655 7810

Buchanan – Investor Relations
Ben Romney
Tel: +44 207 466 5000

Appendix

The Appendix in the attached document show key unaudited production, sales and financial information including those from the balance sheet and profit and loss account for Pan Aje on a consolidated basis with the Divested Subsidiaries for the financial years ended 31 December 2016, 2017 and 2018 and half year ended 30 June 2019.

https://www.oslobors.no/markedsaktivitet/#/details/PNOR.OAX/messages
Redigert 21.01.2021 kl 08:35 Du må logge inn for å svare
FkL
22.10.2019 kl 11:20 5206

Hvis vi antar at Jens’ free float uttalelse gjelder generelt og ikke for å imøtekomme kravet i dag, så betyr jo det bare at dette vil være styrt av hva som har skjedd opp mot transaksjonen og om det er behov for justering. Det utelukker jo heller ikke at eierne vil kjøpe seg opp de også hvis vi er over 25% :)
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
tuja
22.10.2019 kl 11:56 5101

https://www.upstreamonline.com/exploration/petronor-eyes-resolution-of-africa-acreage-title-row/2-1-692465

PetroNor eyes resolution of Africa acreage title row
CEO confirms out-of-court settlement being sought in legacy dispute on Gambia and Senegal acreage after African Petroleum takeover

The company had asked the arbitral authority to impose a moratorium on upstream activity while these cases were pending after Senegal earlier offered its blocks to French supermajor Total, which has also carried out exploration work on the SOSD tract, while The Gambia awarded A1 to BP earlier this year.

PetroNor chief executive Jens Pace, who formerly led African Petroleum prior to its takeover by the Oslo-listed player, indicated in a conference call on Tuesday that his company is seeking to bypass these arbitration proceedings.
“We have always preferred the idea that this can be resolved outside of the legal process, which is robust but takes a long time, to reach a satisfactory solution for all parties,” he said in response to a caller’s question on the issue.

FORLIK!!!!!! ?????

SOON!
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
Warom
22.10.2019 kl 12:04 5053

Du kan bare legge ut resten også :)
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
tuja
22.10.2019 kl 12:07 5028

OK, Warom. Meget bra artikkel som viser hvor vi sannsynligvis er på vei. :)


Utdrag fra artikkel som ble publisert tidligere i dag av Upstream, men oppdatert etter telefonkonferansen.
PetroNor eyes resolution of Africa acreage title row
CEO confirms out-of-court settlement being sought in legacy dispute on Gambia and Senegal acreage after African Petroleum takeover

The company had asked the arbitral authority to impose a moratorium on upstream activity while these cases were pending after Senegal earlier offered its blocks to French supermajor Total, which has also carried out exploration work on the SOSD tract, while The Gambia awarded A1 to BP earlier this year.

PetroNor chief executive Jens Pace, who formerly led African Petroleum prior to its takeover by the Oslo-listed player, indicated in a conference call on Tuesday that his company is seeking to bypass these arbitration proceedings.
“We have always preferred the idea that this can be resolved outside of the legal process, which is robust but takes a long time, to reach a satisfactory solution for all parties,” he said in response to a caller’s question on the issue.

….om AJE skriver de:

«Speaking on the call held in relation to the deal, Pace highlighted the fact that “asset management by the joint venture has previously been one of the reasons for failing to realise the potential of the field to date and we are confident our entry into the project will help to unlock that potential”.

«The acquisition, which marks the company’s entry into Nigeria, “further diversifies our portfolio and provides another revenue-generating pillar for our business” he said, indicating its partnership with YFP could provide a stepping stone to further opportunities in the West African country.»

«Pace said the transaction “reflects a strong pipeline of opportunities that the company has been considering” to achieve its production goal, suggesting further such asset deals are on the cards.»
“There are a number of other opportunities in Nigeria, West Africa and elsewhere that are presently under consideration and would represent a meaningful step in the direction of fulfilling that ambition,” he said, adding “there are a lot of potential opportunities in the pipeline”.

https://www.upstreamonline.com/exploration/petronor-eyes-resolution-of-africa-acreage-title-row/2-1-692465

www.upstreamonline.com
PetroNor eyes resolution of Africa acreage title row | Upstream Online
CEO confirms out-of-court settlement being sought in legacy dispute on Gambia and Se
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
thief
22.10.2019 kl 12:24 4915

Kommer nok snart flere gode nyheter💰Få dager til Senegal avslører lisensene til den nye runden!
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
Bsingh
22.10.2019 kl 12:51 4789

Enig, knaker litt mer enn normalt i dag. Ikke verst.
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
tuja
22.10.2019 kl 12:57 4755

Og ledelsen går fortsatt knallhardt ut om målsettingen på 30k fat innen 3 år:

The Transaction ensures alignment between PetroNor, Panoro and YFP meaning all parties benefit in the success case. We continue to assess a pipeline of opportunities that will enable us to achieve our ambitious growth target of 30,000 boepd within three years through organic and acquisitive means, as we seek to establish ourselves as a premier, full-cycle, pan-African operator”

STERKT!!!!!

Men snart kommer news ang SOSP og A1-A4. Bare å glede seg.
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
Bsingh
22.10.2019 kl 12:57 4746

@China

Om du tror at dette betyr at dette er årets vinner aksje tar du feil (Foreløbig). Dette er bare noen prosenter, som muligens faller tilbake hvis det blir stille en periode (Noter deg ordet MULIGENS. Jeg vet ikke altså). Venter fortsatt på nyheter om forlik, da ser vi forhåpentlig støtte på et mye høyere nivå.
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
Spiralen
22.10.2019 kl 13:03 4697

En liten oppsving på gode nyheter er uansett positivt! Man ser at markedet responderer. Ser det har vært skrevet mye om at skribentene her er overdrevent positive sammelignet med kurs-kurven de siste månedene. Har sitter stille i båten nå i et drøyt år, og må si det er slitsomt å se på oppsving som blir spist opp av at tiden passerer. Samtidig ga dette lille oppsvinget en positiv følelse av at vi er på rett spor! Spennende tider i vente.
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
Bsingh
22.10.2019 kl 13:08 4658

Enig Spiralen. Alltid gøy å se litt oppsving:-) At det gir en en positiv følelse vil jeg si er helt spot on, uten at vi trenger å gå i taket riktig enda. Er veldig spent på tiden fremover selv. Ikke vanskelig å lese seg opp når vi har gode skribenter som bruker tiden sin til å analysere, så skal bli veldig lett å følge med fremover.
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
Liverbirds
22.10.2019 kl 13:22 4587

🍿🚀
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
Liverbirds
22.10.2019 kl 13:22 4580

Kommer nå... 🍿🚀
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
FkL
22.10.2019 kl 13:35 4516

Link til dagens telefonkonferanse fra Henrik på XI for de som ikke kunne delta selv.

https://event.sharefile.com/d-sabf885b548b41c3b
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
thief
22.10.2019 kl 13:35 4511

Ingen tvil om at det vil skje mye her fremover.De er ganske tydelig på at målet på 30k er seriøst,og at de har flere prosjekter i kikkerten,så topper vi det med et forlik eller 2💰🙂Er ikke lenge vi er på energimyggstadiet!
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
Liverbirds
22.10.2019 kl 14:11 4376

Har noen spennende uker fremfor oss 😀🍿🚀
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
tuja
22.10.2019 kl 14:58 4231

Til og med oljeprisen spiller på lag nå. :)
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
china
22.10.2019 kl 17:16 3943

Hjelpeløst
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
FkL
23.10.2019 kl 10:12 3480

Det blir meget spennende å se hva som blir resultatet av dette prosjektet og hva oppsiden blir når neste fase er klar. Det som er helt sikkert er at potensiale for å gjøre noe for miljøet er veldig stort i Nigieria og i dette prosjektet, til samme tid som det faktisk kan bli meget lønnsomt for oss å selge gassen istedenfor å brenne den opp som i dag.

https://ngfcp.dpr.gov.ng/
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
thief
23.10.2019 kl 10:25 3434

Tror dette blir meget bra.Alle sier at lisensen har veldig stort potensiale,men at det har vært problemer med å komme videre/utvikle den,pga samarbeidet mellom lisenshavere.Så at petronor nå går inn,samtidig som de danner et JV med Yianka,kan vel tyde på at det nå kanskje blir fart her🙂Først mer olje i fase 2 og så gass.Og virket som fase 2 nå nesten var bestemt,at de skulle i gang med.Tror det var et meget bra kjøp,og mer kommer.Vi skal jo til 30.000 fat🙂
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare
tuja
23.10.2019 kl 16:43 3135

Stigende oljepris er bra for ett produserende selskap:

EIA (wk ending 18 Oct)
Crude: -1.699M
Cushing: 1.506M
Gasoline: -3.107M
Distillates: -2.715M

:)
Redigert 21.01.2021 kl 05:17 Du må logge inn for å svare