Panoro Announces Completion of Dussafu Transaction
Friday 28 April 2017
Panoro Energy ASA is pleased to announce the closing of the sale of a 25% working interest in the Dussafu Production Sharing Contract offshore Gabon to BW Energy Gabon, a subsidiary of BW Offshore Limited, for a total cash consideration of US$12 million.
John Hamilton, CEO of Panoro, said, “We are excited about our new partnership with BW Offshore to develop the Dussafu oilfield. The closing of this transaction helps strengthen our balance sheet, while retaining a fully financed interest in Dussafu”.
Panoro’s subsidiary, Pan-Petroleum Gabon B.V. (“PPG”), has received US$11 million in cash plus certain transaction date adjustments. As per the terms of the sale purchase agreement with BWEG, the remaining US$1 million will be paid in cash to PPG no later than 30 December 2017.
Post-completion, PPG now holds an 8.333% working interest in the Dussafu PSC. PPG has also entered into a non-recourse loan facility whereby BWEG will provide up to US$12.5 million to PPG in order to fund PPG’s share of all expenditures through the development phase to first oil production at Dussafu.