Panoro Energy ASA has received governmental approval and closed the previously announced farmout agreement (FOA) on Block 2B offshore South Africa
John Hamilton, CEO at Panoro, said, “Following our recently announced successful entry into Equatorial Guinea, we are pleased to now be adding a further country into our growing portfolio of African E&P assets.”
“Block 2B represents a compelling exploration opportunity for Panoro, in a country with exciting world class oil and gas discoveries. The Gazania-1 well is an exploration prospect updip of an existing oil discovery with material potential upside. We look forward to drilling this well with our partners, Africa Energy and Azinam, by the end of the year.”
Under the terms of the FOA, Panoro will acquire a 12.5% interest and carry the relevant AEC subsidiary for up to US$2.5mn of the well cost; Panoro’s funding of costs is subject to escrow funds being deposited by Azinam prior to the rig contract being signed.
The well is expected to be spud by the end of 2021 and the rig tender process is already underway. Separately, AEC has announced the completion of a farm-out whereby Azinam Limited will take a 50% share and operatorship in Block 2B.
