23rd Oct 2019 10:13
(Alliance News) - ADM Energy PLC on Wednesday said Panoro Energy ASA has agreed to sell 100% of its ownership in OML 113 to PetroNor E&P Ltd.
Panoro holds a 6.5% participating interest, with 16% cost bearing interest, representing an economic interest of 12% in OML 113. ADM Energy holds a 5% equity investment in the Aje field in OML 113, which covers an area of 835 square kilometres offshore Nigeria.
PetroNor has agreed to acquire Panoro's interest in OML 113 for USD10 million, ADM said, to be paid in new PetroNor shares, with a contingent future payment of up to USD25 million based on future gas production volumes.
The transaction is conditional on execution and conclusion of an agreement with the operator of OML 113, 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.
"PetroNor entering the Aje project and taking a lead role in its future development is a strong endorsement of the viability of the asset and its significant potential upside," said ADM Chief Executive Osamede Okhomina.
"With its extensive offshore technical experience in oil and gas exploration, development and production, PetroNor can help bring near-term production growth and take Aje to the next stage of its development," added Okhomina.
ADM shares were trading 0.8% lower in London on Wednesday at 5.83 pence each.
By Evelina Grecenko; [email protected]
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