Panoro Energy has agreed a deal to sell its 6% interest in OML 113, host to the Aje field. The 6% stake represents a responsibility for 16% of the asset’s costs and 12% of the economic benefit.
Independent oil and gas group PetroNor E&P is picking up Panoro’s stake in return for US$10mln worth of shares and a possible US$25mln deferred cash payment subject to future production results.
The deal has some value read-through for ADM given the AIM-quoted firm’s stake in the asset.
"PetroNor entering the Aje project and taking a lead role in its future development is a strong endorsement of the viability of the asset and its significant potential upside,” said Osamede Okhomina, ADM Energy chief executive.
“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 shares were up 4% at 6.11p giving the natural resources investor a market value of just £3.65mln.