Panoro Energy announces $12-million sale and purchase agreement for Dussafu PSC, Gabon
OSLO, Norway -- Panoro Energy ASA has announced that on Feb. 21, 2017, its fully-owned subsidiary, Pan-Petroleum Gabon B.V. (“PPGBV”), has entered into a definitive sale and purchase agreement (SPA) with BW Energy Gabon Pte. Ltd. (BWEG), a subsidiary of BW Offshore Limited, global provider of floating production services to the oil and gas industry.
Under the terms of the SPA, Panoro will sell a 25% working interest in the Dussafu production sharing contract (PSC) in Gabon to BWEG for a total cash consideration of $12 million. At closing of the transaction, Panoro will receive $11 million in cash. The remaining $1 million in cash will be paid no later than Dec. 30, 2017.
Panoro will also receive a non-recourse loan from BWEG of up to $12.5 million at 7.5% annual interest rate in order to fund all expenditures through to first oil production at Dussafu. Post-completion, Panoro will retain an 8.33% working interest in the Dussafu PSC. The total gross capital expenditure to reach first oil in 2018 is estimated to be a maximum of $150 million.
The closing of the transaction is subject to customary conditions precedent, including, but not limited to, the approval of the Gabonese Government and the completion of the separate sale of Harvest Dussafu B.V. to BWEG. It is expected that the transaction will close during first-quarter 2017.