Panoro Energy ASA’s has agreed in principle the terms of sale with an undisclosed buyer for its 6.502 % participating interest in the OML 113 license offshore Nigeria, which includes the Aje field, for a total consideration of USD 30 million saction to be paid in cash upon closing.
Execution of the agreement will take place subject to waiver of pre-emption rights held by the other partners to the Joint Operating Agreement.
The Transaction with effective date of Jan 1, 2013 comprises a divestment of the Company’s total interest in the OML 113license. Under the Joint Operating Agreement the existing partners have a 30 days pre -emption period which started May 17, 2013 after which a Sale and Purchase Agreement with the buyer is expected to be executed if the existing partners do not exercise their pre-emptive rights.
Panoro Energy’s CEO Jan Kielland comments: “We are pleased to announce that we have reached commercial terms for the sale of this asset and are close to executing the transaction. This divestment will significantly strengthen Panoro Energy’s financial position and shows that we have been successful in executing on our divestment strategy”.
The closing of the transaction will depend on certain customary conditions. Further information regarding the Transaction will be provided upon execution of the SPA after the pre-emption period.