PetroNor closes Guinea-Bissau offshore blocks buy

Independent oil and gas exploration and production company PetroNor has received the necessary approvals for the acquisition of high potential acreage offshore Guinea-Bissau through the buy of SPE Guinea Bissau AB.

Guinea Bissau blocks map; Source: PetroNor

PetroNor said on Monday that approvals were a condition necessary to complete the transaction. Consequently, the transaction will complete as per the terms of the share purchase agreement.

PetroNor will assume the 78.57 per cent interest of the Sinapa (Block 2) and Esperança (Blocks 4A and 5A) licenses in Guinea-Bissau and will become the operator.

Guinea Bissau blocks map; Source: PetroNor

These licenses have been extended for three years and are valid until 2 October 2023 maintaining the same attractive fiscal terms.

The company will now start discussions with the JV partners on the licences to discuss the work programme, with a view to undertaking drilling activity in 2021/22.

PetroNor CEO Knut Søvold said: “We are delighted to have received the requisite approvals to complete the acquisition of these highly attractive and strategically complementary assets. The acquisition diversifies our exploration portfolio and provides us with meaningful exposure to several drill-ready prospects, with Atum and Anchova containing a gross case recoverable prospective resource of 498 mmbbl.

The addition of high potential acreage in Guinea-Bissau delivers more high impact assets to our portfolio and enhances our ability to monetise our exploration assets in due course.

These assets have the potential to be truly transformational for our business, and we know there is firm interest in the MSGBC (Mauritania, Senegal, the Gambia, Guinea-Bissau and Guinea-Conakry) exploration trend and our prospects are analogous to the world-class Sangomar field in Senegal.

Add to that the improving sentiment caused by strengthening crude prices and we have great confidence that this is a well-timed and well-executed transaction that will deliver long-term value for our shareholders“.

The deal for the acquisition of SPE Guinea Bissau AB was signed back in November 2020. SPE Guinea Bissau AS is a subsidiary of Swedish oil and gas company Svenska Petroleum.