Independent oil and gas exploration company PetroNor has finalized the acquisition of exploration and production (E&P) company Panoro Energy’s interest in the Offshore Mining Lease (OML) no. 113, offshore Nigeria, which contains the Aje oil and gas field.
The acquisition includes the purchase of Panoro Energy’s wholly owned subsidiaries Pan-Petroleum Services Holdings and Pan-Petroleum Nigeria Holding for an up-front consideration of $10 million with a future contingent payment of $16.67 million, based on future gas production volumes.
“We are pleased to confirm that this long awaited transaction with Panoro has now been completed,” stated Jens Pace, interim CEO at PetroNor, adding, “The acquisition of the ownership interest in the Aje field is strategically attractive and supports our stated growth strategy of acquiring assets that add production, material reserves and resources to the company.”
The deal allows PetroNor to establish the Aje Production AD joint venture with Nigerian petroleum company, Yinka Folawiyo Petroleum (YPF), with targets to revitalize and further develop OML 113 and the Aje field, through which PetroNor will act as a technical operator, with 52 percent shares, while YPF will serve as license operator, with a 48 percent stake.
The joint venture will have a 15.5 percent participating interest in the OML 113 license, with an economic interest of 38.755 percent.
“With the establishment of Aje Petroleum YPF and PetroNor will form a dynamic and effective license partnership to lead the redevelopment of the Aje field,” Pace concluded.
OML 113 is situated nearby Nigeria’s capital, Lagos, as well as the West African Gas Pipeline, with PetroNor having set out plans to expedite gas development at the license’s Aje-4 and Aje-5ST2 production wells, as well as through its significant gas-condensate column.