Oslo-listed oil and gas company Panoro Energy has reached an agreement with the Government of Equatorial Guinea on the key terms and conditions for the award of offshore Block EG-23.
The Heads of Terms agreement signed by Panoro, GEPetrol (the national oil company), and the Ministry of Mines and Hydrocarbons paves the way for a period of exclusive negotiations to finalize a Production Sharing Contract (PSC) for Block EG-23 and development of a work program and budget.
Panoro envisages its participating interest in Block EG-23 upon award of a PSC will be up to 80% initially.
Block EG-23 is located offshore Equatorial Guinea north of Bioko Island and adjacent to the producing Alba gas and condensate field.
Covering a surface area of approximately 600 km2 in water depths ranging from 50 meters to 100 meters, 19 wells have been drilled on Block EG-23 to date resulting in seven hydrocarbon discoveries (four oil, two gas and one gas/condensate), some of which have been tested.
The block was previously held by Marathon. Panoro’s technical evaluation indicates a range of plays exist on the block and has identified a number of prospects and leads in addition to the existing discoveries.
According to Panoro, the initial work program will be focused on re-processing existing seismic data to mature prospects and leads to a drill-ready state with an option to then enter a second stage which would entail drilling.
“We are grateful to the Government of Equatorial Guinea for this opportunity to enter into a PSC for the highly prospective Block EG-23 and further grow our business in Equatorial Guinea.
“The award of a PSC for Block EG-23, when finalized, will be a complementary expansion of our existing acreage portfolio in Equatorial Guinea.
“We look forward to partnering with GEPetrol to leverage our collective core subsurface skill sets, increasing our exposure to a broad range of play types, prospects and leads in the vicinity of existing infrastructure,” said John Hamilton, CEO of Panoro.
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