Panoro to Buy DNO's Tunisia Assets

Oslo-listed Panoro Energy announced June 28 it has agreed to acquire Norwegian firm DNO's interests in Tunisia.

It will be funded through a private placement of up to 4.25mn new Panoro shares, raising $4.15mn, and a potential additional sale of up to 1mn existing treasury shares, subject to approval by its May 24 AGM.

Panoro Energy CEO John Hamilton said: "This acquisition represents a substantial milestone and the continuation of Panoro's strategy to build a balanced full-cycle E&P company focused on Africa." The statement was not clear on whether, and how much, associated gas might also be involved. Other producers nearby, including Shell, pipe their gas to the nearby city of Sfax. 

DNO Tunisia holds three offshore assets: Sfax Offshore exploration permit, Ras El Besh concession, and Hammamet Offshore permit. Each has existing oil discoveries and material exploration upside, according to Panoro, which says it plans to secure an extension or renewal of the Sfax Offshore exploration permit in order to fast-track the development of the very shallow water 5mn bbl Salloum oil  find.

DNO has agreed to subscribe for a significant portion of the placement; the price per share is set at kroner 12.82 per share, a 3.6% discount to the closing price on June 27.

DNO is to receive a deferred consideration up to a maximum of $13.2mn, paid through future production from the operated Sfax Offshore exploration permit