Panoro Energy ASA ("Panoro" or the "Company") is pleased to provide an update on the strategic review process. The Company expect that the the Brazilian Petroleum Agency ("ANP") will approve the transfer of Panoro Energy's shares in Rio das Contas to GeoPark Brasil ExploraÇÃo e ProduÇÃo de PetrÓleo e GÁs Ltda in the ANP Board meeting on December 26 . Following the completion of the Manati transaction, the Company will be in a robust financial condition with two fast-track development assets. With this transaction about to be concluded the Board of Directors of Panoro has concluded that the best opportunity to maximise short term value to shareholders is through a structured sale of the Company (the "Sales Process") and has consequently retained Evercore Partners International LLP ("Evercore") to conduct the Sales Process. Panoro believes that the Company should be very attractive to potential buyers wanting a West African platform with near-term production assets and significant exploration potential. Whilst the Company runs the Sales Process it will continue to cut its G&A costs into 2014 and focus on delivering the work program on the Dussafu and OML113 as well as on the divestment of the BS3 assets. With the successful restructuring of the asset portfolio in 2013 almost complete, Panoro has now positioned itself as a West Africa focused company. The Company retains two core assets in its portfolio - the Dussafu licence in Gabon and the OML113 ("Aje") licence in Nigeria . First oil is achievable in both Dussafu and Aje by 2016 and significant exploration potential exists on both assets. With the key divestments of the MKB asset in Congo completed and of the Manati field in Brazil now close to being completed, the Company will have a strong cash position and no debt. The group cash position following the Manati closing will be approximately net USD 80 million after repayment of the bonds and the Company is fully funded to meet all of its current obligations. G&A costs have also been significantly reduced over the year. OML113 - Over the past 6 months the Aje licence has become an increasingly attractive asset. Since the re-alignment of the partnership following the exit of Chevron, significant progress has been made towards initiating a fast track early oil development of the Aje Cenomanian horizon. Discoveries, including particularly the Ogo-1 well, in the neighbouring Nigerian licence have created the potential for nearby developments, and a new syn-rift exploration play has been proved which has the potential to yield additional exploration potential within the Aje licence. Options for the Turonian gas condensate field are also being considered by the partnership, in order to unlock longer-term value. The commercial decision to develop Aje is scheduled to be made in early 2014. A third party reserve update has been produced by AGR TRACS International Ltd in Q4-13 which supports the Company view of the significant value associated with the hydrocarbon discoveries in this licence. Dussafu - The 3D seismic acquisition programme in the Dussafu block offshore Gabon was completed during November 2013 and, once processing is completed, this data will help to define the significant exploration potential of the outboard part of the licence. The seismic data also covers the Ruche and Tortue discoveries and will thus also allow for better placement of development wells, once a field development decision is taken on these discoveries. With the operator of the licence having announced the conclusion of the sale of its Venezuelan assets and its resulting improved financial situation, the project is now better positioned to move towards a declaration of commerciality and final investment decision during H1 2014. Financial institutions have provided early indications that the project has capacity for project financing. A third party reserve update from Gaffney Cline & Associates is expected to be delivered in Q1-14. BS3- The remaining assets in Brazil are the Cavalho Marinho and the Estrela do Mar fields (collectively referred to as "BS3"). Petrobras and the partners have initiated a joint farmout process in Brazil that includes Petrobras' BS3 fields and the transfer of operatorship of these assets to the new farminee. Whilst there can be no guarantees that the farmout process will be successful, this initiative represents an important step forward on the asset. Interested parties are currently reviewing the opportunity at Petrobras' dataroom in Brazil . The Company has cash and two West African oil projects on a fast track to development, aiming for first oil in 2016. This asset base, combined with the Company's robust financial situation forms a strong basis from which to undertake the Sale Process, as well as to mature the Company's assets going into 2014. The Company is preparing a more detailed asset briefing to be delivered early in the New Year, further details of which will be communicated in due course. For further information, please contact: Jan Kielland , Chief Executive Officer Cell: + 47 4156 9974 Email: firstname.lastname@example.org Carl Peter Berg , VP Commercial and Investor Relations Cell: +55 21 985411907 Email: email@example.com For further information in relation to the Sales Process, please contact: Martin Copeland , Managing Director Evercore Tel: +44 207 653 6000 Please visit www.panoroenergy.com for more information. Panoro Energy ASA is listed on the Oslo Stock Exchange (Ticker code: "PEN"). Click here for more information: http://www.newsweb.no/index.jsp?messageId=342691
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