Panoro Energy has announced that PetroNor E&P and Panoro have reached an agreement to increase the completion long stop date for the previously announced sale of its fully-owned subsidiaries that maintain a hundred% of the shares in Pan Petroleum Aje.
The original long stop date was December 31, 2020, being the date by which authorization of the Nigerian Department of Petroleum Resources.
And the consent of the Nigerian Minister of Petroleum Resources have been required to have been received. The amended long stop date to finish the Transaction is now June 30, 2021.
The regulatory approval process in Nigeria is properly underway but has been delayed by the COVID 19 pandemic. The method is in an advanced stage and is expected to resume following the holiday period and to complete afterward.
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As previously announced, following completion of the Transaction, Panoro’s intention is to declare a special dividend and distribute to its shareholders USD 10 million equivalent in Petronor shares to ensure that Panoro shareholders to retain a direct listed exposure to Aje/OML 113.
PetroNor had also in 2019 entered into separate agreements with the OML 113 operator Yinka Folawiyo Petroleum (‘YFP’) to create a holding company to exploit the substantial gasoline and liquids reserves at Aje.
The regulatory process for this agreement is aligned with the Transaction and is expected to be approved concurrently.
Panoro and PetroNor have also taken the chance to evaluate the deferred contingent aspect of the Transaction, reflecting the changed macro-economic background since the original announcement in 2019.
Under the original agreement, once PetroNor had recovered all its costs related to their future investments to bring Aje gas into production.
PetroNor was to pay Panoro further consideration of USD zero.15 per 1,000 cubic feet of the natural gas gross sales.
And such extra consideration being capped at USD 25 million. The amended phrases are for the consideration to be USD zero.10 per 1,000 cubic
It with the extra consideration being capped at USD sixteen.sixty-seven million. All other terms and conditions of the Transaction remain unchanged.