ADM Energy upbeat on PetroNor participation in OML 113

(Sharecast News) - Oil and gas investment company ADM Energy noted on Wednesday that Panoro Energy - an independent exploration and production company - has agreed to sell 100% of its ownership in OML 113 to PetroNor E&P.
The AIM-traded firm said Panoro held a 6.502% participating interest, with a 16.255% cost-bearing interest, representing an economic interest of 12.1913%, in OML 113.

PetroNor agreed to acquire Panoro's interest for $10m, to be paid in new PetroNor shares, with a contingent future payment of up to $25m based on future gas production volumes.

The transaction remained conditional on the execution and conclusion of an agreement with the operator of OML 113, expected to conclude in the coming weeks, and upon the authorisation of the Nigerian Department of Petroleum Resources and the consent of the Nigerian Minister of Petroleum Resources.

In an announcement from PetroNor on 21 October, that company said its rationale for the transaction was to "become a technical operator of a de-risked development project with significant upside potential", giving it the "opportunity to leverage PetroNor's technical experience to progress [the] Aje project and deliver near-term increased commercial recovery of hydrocarbons".

Osamede Okhomina, chief executive officer of ADM Energy, said that PetroNor entering the Aje project and taking a lead role in its future development was a "strong endorsement" of the viability of the asset and its "significant" potential upside.

"With its extensive offshore technical experience in oil and gas exploration, development and production, PetroNor can help bring near-term production growth and take Aje to the next stage of its development."

ADM Energy holds a 5% equity investment in the Aje field in OML 113, which covers an area of 835 square kilometres offshore Nigeria.

Aje contained multiple oil, gas and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones, the board said, with five wells drilled to date.

It currently had two producing wells - Aje-4 in the Cenomanian and Aje-5 in the Turonian.