Panoro Energy said it has entered into a definitive agreement with Beender Tunisia Petroleum to acquire its 40 percent shareholding in Sfax Petroleum Corporation (‘SPC’) for a total consideration of approx. USD 18.2 million in a mix of cash and shares.
SPC through its subsidiaries, indirectly owns a 49 percent interest in the producing TPS Assets which comprise five oil field concessions in the region of the city of Sfax, onshore and offshore shallow water Tunisia, and an 87.5 percent interest in the Sfax Offshore Exploration Permit (‘SOEP’) offshore Tunisia.
Prior to the Acquisition, Panoro’s effective ownership of SPC stood at 60 percent (29.4 percent interest in the TPS Assets and 52.5 percent interest in SOEP). Post the Acquisition Panoro’s ownership of SPC will increase to 100 percent (49 percent interest in the TPS Assets and 87.5 percent interest in SOEP) and SPC will be a fully owned subsidiary of Panoro.
John Hamilton, CEO of Panoro, The TPS Assets are long-life, low-cost oil fields with a stable production history and significant volumes of oil yet to be recovered while the Sfax Offshore Exploration Permit holds three oil discoveries and numerous identified prospects and leads in the vicinity of existing infrastructure.
“We are very pleased to complete this complementary acquisition of almost 3 million barrels of oil of 2P reserves and net daily production of 800-900 bopd. We welcome the opportunity to expand our position in Tunisia and to increase our net exposure to our TPS existing producing assets with minimal additional G&A costs,” Julien Balkany, Chairman of Panoro pointed out.