Panoro Energy – heads of terms agreed for block EG-23 offshore Equatorial Guinea

Panoro Energy ASA  has announced that it 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, and the Ministry of Mines and Hydrocarbons, sets the stage for a period of exclusive negotiations to finalize a Production Sharing Contract for Block EG-23 and the development of a work program and budget. Panoro anticipates that its participating interest in Block EG-23 upon the award of a PSC will be up to 80 percent initially.

Situated offshore Equatorial Guinea north of Bioko Island and adjacent to the producing Alba gas and condensate field, Block EG-23 covers a surface area of approximately 600 km2 in water depths ranging from 50 metres to 100 metres. To date, 19 wells have been drilled on Block EG-23, resulting in seven hydrocarbon discoveries, including four oil, two gas, and one gas/condensate. Some of these discoveries have been tested. Previously held by Marathon, Panoro’s technical evaluation suggests the existence of a range of plays on the block, with several prospects and leads identified in addition to the existing discoveries.

Panoro’s initial work programme for Block EG-23 is expected to focus on reprocessing existing seismic data to advance prospects and leads to a drill-ready state, with the option to proceed to a second stage involving drilling.

John Hamilton, CEO of Panoro, expressed gratitude to the Government of Equatorial Guinea for the opportunity to enter into a PSC for the highly prospective Block EG-23. He emphasised that the award of a PSC for Block EG-23, once finalised, would complement Panoro’s existing acreage portfolio in Equatorial Guinea. Hamilton also looked forward to collaborating with GEPetrol to leverage their collective core subsurface skill sets and increase exposure to various play types, prospects, and leads in the vicinity of existing infrastructure.

For more information visit www.panoroenergy.com