Panoro Energy has signed two agreements to acquire $180 million in assets from Tullow Oil, media reports said. These assets are held by Tullow Oil in Equatorial Guinea and Gabon. Panoro Energy is a London-based exploration and production company.
It is reported that the exploration and production company will acquire a 14.24 working interest in Equatorial Guinea’s Block G and a 10 percent working interest in Gabon’s Dussafu Marin permit. Equatorial Guinea’s Block G is operated by Trident Energy.
John Hamilton, CEO, Panoro Energy, told the media, “It’s a transformational deal. We have incredibly supportive shareholders, who have encouraged us to grow. Sometimes the stars and the moon align, and we have had a great coming together with Tullow.”
Under the terms of the agreement, the transaction includes an $89 million upfront cash consideration. However, the transaction is subject to ‘customary completion adjustments and contingent cash payments of up to $16 million’ which is associated with the asset performance and oil price, media reports said.
Rahul Dhir, CEO of Tullow Oil, told the media, that the agreements will “have a positive effect on our financial position, as we look to further reduce our net debt and continue constructive discussions with our creditors. These transactions are also in line with our strategy of investing our capital on cash-generative, high return investment opportunities in our core portfolio.”
It seems that the exploration work in Gabon had significantly slowed down due to lockdown measures as a result of the coronavirus pandemic. Panoro and BW Energy seek to complete the Torque development with the drilling of two wells, media reports said.