Norwegian oil and gas operator DNO said it sold its Tunisia unit to Panoro Energy as it looks to divest non-core assets and also bought a near 6 per cent share in the latter following the sale.
“The company continues its divestment of non-core assets and focuses on expanding its operations in the Kurdistan region of Iraq and offshore Norway,” DNO said in a statement.
All DNO Tunisia employees have transferred to Panoro as part of the transaction. Panoro has assumed all existing permit interests, rights and remaining work obligations at the Sfax Offshore Exploration Permit, Ras El Besh Concession and Hammamet Offshore Exploration Permit, DNO said.
Panoro has retained a cash balance of US$8.6 million in DNO Tunisia AS, reflecting DNO's partial contribution toward the remaining work obligations and in support of Panoro's ability to develop and unlock value in the assets.
Meanwhile, DNO said it has subscribed to 2,641,465 shares in Panoro Energy ASA, representing 5.65 percent of the outstanding shares, at a price of NOK 12.82 per share. Both companies are listed on the Oslo stock exchange.
Through its shareholding in Panoro, DNO said it maintains exposure to the Tunisian permits and will in addition receive a deferred consideration of up to $13.2 million paid through future production from the Sfax Offshore Exploration Permit.