Panoro Energy has announced that it has received governmental approval and closed the previously announced farmout agreement on Block 2B offshore South Africa.
John Hamilton, CEO Panoro, said: “Following our recently announced successful entry into Equatorial Guinea, we are pleased to now be adding a further country into our growing portfolio of African E&P assets. Block 2B represents a compelling exploration opportunity for Panoro, in a country with exciting world class oil and gas discoveries. The Gazania-1 well is an exploration prospect updip of an existing oil discovery with material potential upside. We look forward to drilling this well with our partners, Africa Energy and Azinam, by the end of the year”.
In 2020, Panoro signed the FOA with a subsidiary of Africa Energy Corp. (“AEC”), part of the Lundin Group of Companies. Under the terms of the FOA, Panoro will acquire a 12.5% interest and carry the relevant AEC subsidiary for up to $2.5 million of the well cost; Panoro’s funding of costs is subject to escrow funds being deposited by Azinam prior to the rig contract being signed. The well is expected to be spud by the end of 2021 and the rig tender process is already underway. Separately, AEC has announced the completion of a farm-out whereby Azinam Limited will take a 50% share and operatorship in Block 2B. Azinam is a private Southern Africa-focused oil and gas exploration company supported by Seapulse Ltd., a vehicle backed by Robert Friedland and Seacrest.