Panoro is pleased to announce that its fully owned subsidiary Pan Petroleum Gabon B.V. has entered into a Memorandum of Understanding with BW Energy Gabon Pte. Ltd. (“BWEG”), a newly established subsidiary of BW Offshore, the leading global provider of floating production services to the oil and gas industry.
Under the terms of the preliminary partnership agreement, Panoro will sell a 25% working interest in the Dussafu PSC to BWEG for a total cash consideration of US$12 million. Panoro will also obtain a capped limited recourse development loan from BWEG to fund expenditures through first oil production.
The transaction is subject to several conditions, including the signature of a definitive purchase agreement with BWEG, 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 in the first quarter of 2017.
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 expected to be a maximum of US$150 million.
Panoro notes the separate announcement today that BWEG has entered into a sale and purchase agreement with a subsidiary of Harvest Natural Resources to acquire the entire share capital of Harvest Dussafu B.V., which holds a 66.66% operating working interest in the Dussafu PSC, for total cash consideration of US$32 million
