Norwegian oil and gas operator DNO on Monday announced it has subscribed to 2,641,465 shares in Oslo-listed Panoro Energy ASA, representing 5.65 percent of the outstanding shares, at a price of NOK 12.82 per share.
The share subscription follows a transaction in which DNO sold its Tunisia subsidiary, DNO Tunisia AS, to Panoro as the Company continues its divestment of non-core assets and focuses on expanding its operations in the Kurdistan region of Iraq and offshore Norway.
All DNO Tunisia employees have transferred to Panoro as part of the transaction. Panoro has assumed all existing permit interests, rights and remaining work obligations at the Sfax Offshore Exploration Permit, Ras El Besh Concession and Hammamet Offshore Exploration Permit.
Panoro has retained a cash balance of USD 8.6 million in DNO Tunisia AS, reflecting DNO’s partial contribution toward the remaining work obligations and in support of Panoro’s ability to develop and unlock value in the assets.
Through its shareholding in Panoro, DNO maintains exposure to the Tunisian permits and will in addition receive a deferred consideration of up to USD 13.2 million paid through future production from the Sfax Offshore Exploration Permit.