Oil and gas company PetroNor E&P ASA has confirmed the completion of the Guinea Bissau farm-out transaction with Apus Energy DMCC for exploration licenses offshore Guinea-Bissau, and secured license for PNGF Bis in Congo.
Over the Christmas holiday period, Apus Energy initiated the payment of $23 million towards past license costs and long lead items purchased for drilling as part of the farm-out deal the companies made in June 2023.
The Government of Guinea Bissau approved the transfer of the Sinapa (Block 2) and Esperança (Blocks 4A and 5A) license interests to Apus during October 2023.
It is anticipated that an exploration well to test the Atum-1 prospect will be drilled during the second quarter of 2024.
In case of a successful well, PetroNor stands to receive two contingent earn-out payments of $30 million each, contingent upon government approval of a field development plan and sustained production.
Congo PNGF Bis Moves Forward
On December 27, 2023, the Council of Ministers in the Republic of Congo met and approved a number of energy projects.
This included the award of the PNGF Bis license to a contractor group led by Perenco as an operator and with PetroNor, represented through its Congolese subsidiary, Hemla E&P Congo, as a partner with a net interest of 22.7%.
This approval will clear the path for signing of a production sharing agreement in early 2024, according to PetroNor.
“We are pleased that the farm-out of the Guinea Bissau licences will lead to the drilling of an important exploration well for Guinea Bissau and the region. The completion of this transaction, coupled with the approval from the Congolese Council of Ministers on PNGF Bis, is a welcome way to close what has been a very successful year for PetroNor.
“The Guinea Bissau payment is a significant contribution to the company’s year-end balance sheet that is already strengthened by record production and oil sales. In addition, we look forward to progressing the development of the new license in the Congo during 2024 with our partners,” said Jens Pace, interim CEO of PetroNor.